Sales tax on used parts and why...

you shouldnt have to pay it!

All items in America are charged sales tax when they are sold for the first time right after manufacturing. This is the only time they are required to collect a sales tax on an item. When it was new. I imagine there are items out there that have been collected tax on seven zillion times...

After an item has been sold once, it is no longer new and thus, it is not subject to tax collection, wether it be state sales tax,federal sales tax, or whatever kind of tax. It is a used item. It's tax has already been collected. People at Swapmeets that want to charge you sales tax ( they crack me up!) on a 82 year old Model A hood and fenders (for instance) are just stroking you. They keep the money for themselves. If you cant see that you need to get your glasses cleaned up. I will never charge sales tax on internet sales.it's not a friggin state.. it's..it's...CYBERSPACE!!! hehehehahahaaha...Mikey

 

...I agree with you, .....also,see my somewhat related post on Illinois titles...
http://www.jalopyjournal.com/forum/showthread.php?t=414467

 

I think any time a business sells something they are technically required to charge sales tax, if it's a sales tax state. (Think antique store). Just the way it is. They tax you when you make it, spend it, save it, invest it and however else they can STEAL it from you. That said, most people at swapmeets that charge sales tax on used items DEFINITELY pocket the money.

 

I always thought it was a ripp-off to pay sales tax on a used car. In Texas it`s 6.25 %

 

when i set up at a swapmeet. i have to fill out paperwork so the state can collect tax...from me...so i collect from you.don't like it.leave the parts there for the guy that knows you have to pay the band in order to dance.

 

Whats Next....Tag/Garage Sales ?

 

ya..its stupid

 

its on a state by state basis. but only if you are trading a used piece for a new piece for example in Illinois if you trade in a car you only have to pay the tax on the difference, not the total sale becasue you already paid tax on it. In ohio you have to pay tax on the whole amount. I have to deal with tax laws on a state by state basis a lot. There are a lot of stores and companies that charege tax that they cannot legally charge for. I know a lot of legal ways to get out of paying sales tax. not that I would want to screw the government

 

This is another reason to pass the FairTax!

 

What kind of tax are they collecting from you? Income tax, or sales tax? or both?

 

sales tax. i get a form in the mail from the state from every meet i set up at. i have to show sales and pay the taxes accordingly or pay a flat rate. if you are ever audited,and show more than the flat rate paid...they squeeze ya.

 

I thinks these guys said it all!!!!!!!!!!!! http://www.youtube.com/watch?v=lWAl5V-SiKQ

 

thats fucked up!

 

ouch. I been audited... huge pain in the ass...

 

I'm an accountant and every few years the IRS set on a mission to develop a practical way to catch people not paying taxes on bartering. Everyone is "required" to pay taxes on the fair market value of the exchanged goods and services. Its just too difficult to catch and prosecute but they are trying.

http://www.irs.gov/businesses/small/article/0,,id=188095,00.html

Its all about whats in your wallet and the IRS getting their piece.

 

yes , there has been talk if that in Minnesota in the past...with the state budget being short i'm sure they will bring it up again. and yes, you have to fill out a tax form and collect sales taxes at swap meets in Minnesota

 

That is why it is called "Sales Tax".
You make a sale, they want a piece of the action.

 

GREED the new american dream

 

Arizona does not have "sales tax"....we have "transaction privilege tax".

Doesn't that sound nice? bastards

 

Did you know that if you sell the 1966 chevy truck
that you paid $400 for in 1977
for $100 today,
You are required by law to report the $100 as "INCOME"?

Seems to me that I LOST money on that deal

 

I guess you don't understand capital gains.....

 

everyone is worried about paying sales tax. just think if you had to pay income tax on the profit from parts you sold.

 

I had a guy come into my shop a few yrs ago, and wanted to collect tax on my tools and equipment. I told him I paid tax on all that shit when I bought them. He said, but now you're making a living with them. And I said, that's why I pay Income tax. Jesus, these freakin guys want it coming and going

 

Damn democrats 'Tomorrow Im helping a buddy pick up fence We are going to not buy the fence in phila because they raised the sales tax to 8% That's his choice ,You work pay taxes out of your paycheck and go to the store buy food and get taxed Buy anything and you get taxed and the postoffice is broke ,Economy is in the toilet Banks are broke My question is why are they after more taxes on used carparts It aint working anyway.

 

Self appointed "tax collector" ?
Sounds like protection money.

 

You are right...I don't.

I went to wikipedia.....
A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. It is the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the investor.<SUP id=cite_ref-0 class=reference>[1]</SUP> Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purchase price.

Don't I have a capital loss?

 

^ Looks like it to me

 

Now you are talking about the 'black market'.

The federal government says you MUST pay taxes on the parts you sell in private transactions
(even though no one does)

They also want you to pay taxes for the 'fair value' when you barter!

 

I bought a partial project, T-bucket, in PA. When I went to get it titled and registered I had to pay the sales tax for the parts the previous owner bought at the full value HE paid. Only the parts he didn't pay sales tax on like mail-order, swap meet stuff.

I had to show receipts, like most states, of the major pieces to build the car. I paid $4500 for the project. The receipts that I sent to DMV from the previous owner totalled about $6000. I sent DMV a check for the sales tax for the $4500 I paid for the project plus tax on what I had to put in it to finish it. DMV bounced my application on not enough sales tax. I had to pay tax on the $1500 difference between the $4500 I paid and the $6000 that the receipts added up to from the previous owner.

Seemed screwed up to me but for $90 dollars I sent the check and had plates in a week.

Bill

 

In New York you can only have so many garage sales before you need to get a tax number and collect sales tax on them. And you probably should be reporting that profit as income if you report it for sales tax, or you'll get boned in an audit.

But on the bright side a swap meet is all cash sales, so who knows the difference if you sold $20 or $200 except you? Who knows if you buy something at 8:00 AM for $10 and sell it for $50 at noon?

Just report enough to keep them happy, because in NY if you forget they bone you with a $50 fee (even if you owe zero) and they decide what you owe. I'm sure other states will do similar things.


I learned that the least you can sell an automobile for in New York is $1.00. I picked up a freebie beater a few years ago and to avoid needing to go back and get more forms filled out (gift forms for the sales tax) I gave them a reciept that said I paid two cents for it, I told the DMV clerk that the guy who had it was so mad he said that if someone would give him two cents for the car they could have it... and I produced two cents for it. Ended up paying 7 cents tax.



As to why they're after the taxes, they have to collect revenue somewhere so they can give it away to all the deserving underpriveledged folks out there. When they charge so much that the rich just move away to someplace that charges them less income tax (or none at all), guess who they have to come to next?

It boils down to too many greedy politicians who care more about retaining power and controlling you than about letting everyone prosper and be happy.