What is taxable?

[Asolis]

Going to start a small business doing small residence stuff (fencing, gates,ect). Also some custom stuff like wood racks, bumpers,ect. What is taxable? or when should I be charging taxes.

[sn0border88]

Wouldnt this be a question for your accountant?

If you dont have one, and your planning on doing your business taxes yourself then you should be able to figure out the answer.

[Asolis]

Originally Posted by sn0border88

Wouldnt this be a question for your accountant?

If you dont have one, and your planning on doing your business taxes yourself then you should be able to figure out the answer.

Yea don't have one. I figured since I'm not going to be making a big amount of money yet, I wouldn't need one. But I guess I do.

[ZTFab]

A GOOD business accountant/CPA/EA will be the best money you ever spend (or don't when it comes to taxes).

[Mondo]

Originally Posted by Asolis

Going to start a small business doing small residence stuff (fencing, gates,ect). Also some custom stuff like wood racks, bumpers,ect. What is taxable? or when should I be charging taxes.

Nothing you do is taxable in New Hampshire. Unless you are selling gasoline, cigaretts, communications service or electric power. Or buying prepared meals in restaurants or lodging at the No-Tell Motel.

Retailers and tradesman, including carpenters, weldors, pipe fitters, plumbers, handymen, glaziers... etc. etc. etc.... no sales tax, no service tax.

I see you live in the Lone Star State. The State of Texas tax office may be helpful for the basics. But a tax accountant will be your best source for info on how to play the game and stay out ot trouble.

-Mondo

[76GMC1500]

It's not taxable if it's for resale. There are a few other exemptions. Where I work, in the maritime industry, most of the things we buy for the boat are non-taxable. Our rule of thumb is that if you turn the boat upside down and it doesn't fall out, it's non-taxable. Of course I'm in California and the rules vary by state.

[Rick V]

In Ontario Canada the rule is simple, 'If it exists, it's taxed... until it no longer exists!'

[DSW]

Originally Posted by ZTFab

A GOOD business accountant/CPA/EA will be the best money you ever spend (or don't when it comes to taxes).

I was once told a good accountant is one who can save you enough in taxes to pay for themself, and it's very true. It may cost me $350-500 for him to do my taxes each year, but he's pointed out all sorts of things I'd have never thought of that are legitimate deductions and made suggestions of things I can do the next year to reduce the taxes I have to pay. I'd rather give him the money than give it to the State/Feds.

Get an accountant! There's all sorts of things that are legitimate "business expenses". Have a vehicle you use to get supplies? Registration, tolls, fuel, maintanence, insurance etc is all an expence. If you use it for business and personal, then you can take off the percentage you use it for the business. Same with electric, office space in your home and much more.

[Rojodiablo]

Originally Posted by Rick V

In Ontario Canada the rule is simple, 'If it exists, it's taxed... until it no longer exists!'

California really resembles this model also......

[Monica]

Originally Posted by Asolis

Going to start a small business doing small residence stuff (fencing, gates,ect). Also some custom stuff like wood racks, bumpers,ect. What is taxable? or when should I be charging taxes.

Check out http://www.window.state.tx.us/taxes/ for all Texas taxes. You'll also want to read through http://www.irs.gov/businesses/index.html?navmenu=menu1

Here's the TX SoS site and you can walk through how to start business in Texas: http://www.sos.state.tx.us/corp/related.shtml


I started an LLC here in DFW in '09 and the above sites are what I used to get setup. There's lots of reading - get some coffee.

Oh, last but not least take a gander through your city ordinances so you don't come up on any surprises. If you're in an HOA better read up there too or it could be heartache.

[prop-doctor]

in Oklahoma labor is non-taxable, parts/supplies are taxed unless for resale
then buyer must have a fed.tax number, and pay tax once a month to tax comission
when i do props i buy paint ,consumables, and such i pay the sales tax
and charge customer labor plus shop supplys
check with your state tax comission for youe area

[Knotbored]

These answers are not tax exempt-determine your financial benefit derived from answers and include it as "disposable income" on line 30.

[DSW]

Originally Posted by Knotbored

These answers are not tax exempt-determine your financial benefit derived from answers and include it as "disposable income" on line 30.

[AMMO22]

Just started my part time business last Friday here in Wichita Falls. The lady at the comptroller's office gave me tons of info. She also showed me a part of the "window" website that has letters, questions, and court minutes from tax situations that happened in the past, so if someone has experienced a problem similar to one you might come upon, you can read about what happened to that person, how it was resolved, etc.

-Any consumables that you purchase for a job, you don't pay taxes on. Unfortunately this doesn't work for tools of the trade i.e.: welder, truck, grinders, etc. They gave me a form to take anywhere I purchase my rods, wire, grinding wheels, etc that exempts me from paying taxes.

-Most agriculture work is tax exempt (but not all). If you work on farm machinery, and it was tax exempt for the owner when they bought it, they you don't charge taxes to repair it. There is everything you need to know on the pages Monica posted. It appears there are a lot of fine lines, read as much as you can.

[bert the welder]

Refer to Stevie Ray's song for a list.....

Cheque= tax
Cash=none

[MoonRise]

Short but real answer: Since the tax laws and rules and regulations vary all over the place from region to region, (and often from year to year), contact a knowledgeable tax 'specialist'. CPA, tax attorney, etc.

A longer answer: Since tax laws and rules and regulations vary all over the place from region to region, and often from year to year, contact a knowledgeable tax specialist to find out what is applicable for you and your locale. You may have to contact and pay for more than one 'specialist', because of the HUGE amount of rules and laws and regulations and paperwork at the federal and state and local levels that are either there or possible.

btw, business folks. A Heads-Up. Saw a news article about how the 'Health Reform' law slipped in a paperwork change for businesses regarding taxes and such. All businesses will have to keep records and paperwork for/from ALL suppliers/vendors, including TIN's, for purchase of goods or services from any supplier/vendor for any and all puchases that exceed $600 per year TOTAL and report such to the IRS via 1099's.

http://www.msnbc.msn.com/id/38492177...sonal_finance/

NoBama and the Dems somehow think that they will 'magically' turn up $19 Billion over a decade because they somehow think that (small) businesses are underreporting taxes and taxable transactions to the tune of $2 billion per year.

[Sandy]

Why not go for the short list = "what isn't taxed" ?

[Rick V]

A poem... by author unknown.
Tax his land,
Tax his bed,
Tax the table
At which he's fed.

Tax his work,
Tax his pay,
He works for peanuts
Any way!

Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his car,
Tax his gas,
Find more ways
To tax his ***.

Tax all he has
Then let him know
That you won't be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him till
He's good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid.

When he's gone,
Do not relax,
It’s time to apply
The inheritance tax.

[Stick-man]

Keep it small (side work), accept cash only, no checks just dead presidents and don't give a penny to the gov. They'll find a way to take it from you, don't offer it up.

If you will be doing more than side work, get an accountant.

[bert the welder]

Originally Posted by MoonRise

... somehow think that (small) businesses are underreporting taxes and taxable transactions to the tune of $2 billion per year.

umm.....they probably are ........and that's probably a conservative number

[Rick V]

Originally Posted by MoonRise

All businesses will have to keep records and paperwork for/from ALL suppliers/vendors, including TIN's, for purchase of goods or services from any supplier/vendor for any and all puchases that exceed $600 per year TOTAL and report such to the IRS via 1099's.... because they somehow think that (small) businesses are underreporting taxes and taxable transactions to the tune of $2 billion per year.

It's likely to get worse...
I have a friend in the one-handy man, home-renovation business. Recently, the new harmonized sales tax in the province rose to 13% on all goods and services. He bitterly complained to me about all the added paper-work to keep things proper for tax purposes.
'Rick, it's nuts! The way it's going, it's easier to have the buyer purchase the materials and pay me cash under-the-table for doing the service. Cheaper for him, more profit for me and I waste none of my valuable work time doing useless/unpaid paper work. You know, I expect this added tax will push a lot of small business to go this route.'

[bert the welder]

Originally Posted by Rick V

It's likely to get worse...
I have a friend in the one-handy man, home-renovation business. Recently, the new harmonized sales tax in the province rose to 13% on all goods and services. He bitterly complained to me about all the added paper-work to keep things proper for tax purposes.
'Rick, it's nuts! The way it's going, it's easier to have the buyer purchase the materials and pay me cash under-the-table for doing the service. Cheaper for him, more profit for me and I waste none of my valuable work time doing useless/unpaid paper work. You know, I expect this added tax will push a lot of small business to go this route.'

Haven't a clue what to do either. We just got HST-ized out here. It's nice I don't have to submit bi-annual PST reports, but I know that the paper work will be made up somewhere!!! They do love their T-forms!!!