Selling Of Personal Geocoins And

[+M-T-P]

Those of you who are actively selling your personal geocoins online individually or not through a management company who handle's that aspect for you, what do you do about your state's sales and use tax. In Texas, for example, if you sell more than two items online during a 12 month period, you are responsible for charging state and local sales tax on all in-state purchases. In reality, this would affect listing coins on eBay, here, or any online venue for the marketing and selling of geocoins.

[+The Blind Acorn]

SHHHHHHHHHHHHHHHHHHHH

 

but I've often wondered this as well....

Edited March 22, 2006 by The Blind Acorn

[+Nocturnal Navigators]

SHHHHHHHHHHHHHHHHHHHH

 

 

I think she said it best.

[Not So Lost Puppies]

you better also be quiet about the INCOME being made from those coin sales that the IRS will want to know about.

[+M-T-P]

you better also be quiet about the INCOME being made from those coin sales that the IRS will want to know about.

 

The income part is no big deal. The IRS doesn't care unless you make over $600 in income (actual profit) from the selling of coins. Unfortunately, at least in Texas, the state wants it's share from every single share even if you don't break even. So, for my original question, does ANYONE here actually charge and pay their state's sales tax when selling geocoins?

[+nielsenc]

you better also be quiet about the INCOME being made from those coin sales that the IRS will want to know about.

 

The income part is no big deal. The IRS doesn't care unless you make over $600 in income (actual profit) from the selling of coins. Unfortunately, at least in Texas, the state wants it's share from every single share even if you don't break even. So, for my original question, does ANYONE here actually charge and pay their state's sales tax when selling geocoins?

 

Every State wants this. Even when you buy from Amazon and they dont charge you sales tax, you are supposed to pay the state the sales tax. When I lived in WA, I doubt the people driving to Portland for Shopping would pony up the sales tax they would owe to WA.

Edited March 22, 2006 by nielsenc

[+M-T-P]

 

Every State wants this. Even when you buy from Amazon and they dont charge you sales tax, you are supposed to pay the state the sales tax. When I lived in WA, I doubt the people driving to Portland for Shopping would pony up the sales tax they would owe to WA.

Sure, and I can understand this not being done by buyers of out-of-state merchandise, but I'm asking about those of you who are sellers. I'm talking more about this statement from the Texas Guide to Internet Orders: Buying and Selling, "Whether the sale takes place online or in a store, Texas sellers must collect sales tax on taxable items sold and delivered to Texas locations."

 

I'm really not trying to stir things up, but before I start selling my first coin I want to be sure that I'm 1) doing what I'm legally responsible for doing and 2) doing what everyone else is doing. Unfortunately, it seems like 1 and 2 are in conflict.

[+pdxmarathonman]

What's this sales tax you speak of? Here in Oregon they just take 9% from the paycheck, which apparently isn't enough!

Edited March 22, 2006 by pdxmarathonman

[+crake]

What I did was get registered to collect sales tax in Texas. This required a DBA to filed with the county clerk, and then a simple application filed with the state. At the end of the year I submit a sales report for Texas sales and then pay the required sales tax. It is my responsibility to collect tax, and so I do this when I take orders. When I sell coins in person the sales tax is included in the price (in exchange for the paypal fee actually).

 

Yes its a PITA to track, but that's where Excel comes in handy

[+M-T-P]

What I did was get registered to collect sales tax in Texas. This required a DBA to filed with the county clerk, and then a simple application filed with the state. At the end of the year I submit a sales report for Texas sales and then pay the required sales tax. It is my responsibility to collect tax, and so I do this when I take orders. When I sell coins in person the sales tax is included in the price (in exchange for the paypal fee actually).

 

Yes its a PITA to track, but that's where Excel comes in handy

 

Good advice, any others?

[ParentsofSAM]

neilsenc had it right you should be paying sales tax on every purchase you make even if the company you bought it from does not charge it or if they only charged sales tax for the area they are in. You are still responsible for your local/state sales tax.

 

As a seller of merchadise you do not have to file a sale tax and use return in most states (yours may be different, you should check) until your sales are over $600 per quarter. This also applies to things you sell on eBay, at your yard sale or the local flea market. Most people are not paying the sales tax on those things.

 

If you have ever sold a car privately you should have filed a sales and use tax return, have you ever? Most likely not and the state does not really care, you are selling something on a one time basis and not for that much money you will be fine.

 

But for folks like crake, BBB and Those Coin Guys and other people who have made and sold several coins they need to do like crake said and file the returns and also be reporting it and paying taxes to the IRS.

[+crake]

But for folks like crake, BBB and Those Coin Guys and other people who have made and sold several coins they need to do like crake said and file the returns and also be reporting it and paying taxes to the IRS.

 

ABSOLUTELY need to file with the IRS. That means keeping records of sales and expenses. At the end of the year be prepared to write a check for the tax owed on the differnce of the two.

 

Good news: shipping supplies, postage, even miles put on the car are tax deductible.

Bad news: any extra income is taxable. For example, you might need to put 25% away for taxes and not realize it! (oops).

 

This is true for ANY hobby. The IRS does not distinguish a hobby that generates income from a business. The same is true for my photography.

 

And you want to know something else particularly evil? If you trade for a valuable coin, guess what you should be doing... yup - reporting the value of the trade as INCOME. Barter/trade is taxable.

 

If you want to get even MORE messed up, this applies to VIRTUAL items as well... don't tell the guys who play WOW or they might pop

[+BenGeo'en]

What's this sales tax you speak of? Here in Oregon they just take 9% from the paycheck, which apparently isn't enough!

 

Sales Tax???

In Alaska they give me a ckeck every year just

to live here!!!

 

We love are "Permanent Fund" Checks.

[+IceCreamMan]

My question is, how did we, as free people claiming to live in a free country, ever allow the government to get this kind of control over our lives? Those who gave their lives, their fortunes and their precious honor to found this nation must be rolling over in their graves.

[+prntr1]

What's this sales tax you speak of? Here in Oregon they just take 9% from the paycheck, which apparently isn't enough!

 

Sales Tax???

In Alaska they give me a ckeck every year just

to live here!!!

 

We love are "Permanent Fund" Checks.

 

If anyone is really interested, you can find all you need here IRS Pub including your "Permanent Fund" checks.

It is all in Part Two, Section 12, Other Income.

As someone who has had several disputes with the IRS it does pay to read up on this stuff.

 

Edited to add:

ps, not a tax expert, just thought I would show the way!!

Edited March 23, 2006 by prntr1

[Not So Lost Puppies]

you better also be quiet about the INCOME being made from those coin sales that the IRS will want to know about.

 

The income part is no big deal. The IRS doesn't care unless you make over $600 in income (actual profit) from the selling of coins. Unfortunately, at least in Texas, the state wants it's share from every single share even if you don't break even. So, for my original question, does ANYONE here actually charge and pay their state's sales tax when selling geocoins?

 

When you sell out of state, if you aren't registered in that state, you aren't required to charge state sales tax. It is up to the BUYER to report the sales tax that they SHOULD have paid for their purchase. Very few people do that though, but it is usually a state tax law.

 

Also, there are likely some individuals that only sold a single coin that still took in over $600 in profit.

 

While most individuals will not have to worry about it, there is the possibility of it causing an issue if you get audited and they find out about the coin sale.

 

and as others mentioned, technically barter/trade is taxable at its untraded value. Though I would say that in most cases the actual value of geotokens could often be considered as its original selling price or maybe even its cost.

[+Renegade Knight]

...If you have ever sold a car privately you should have filed a sales and use tax return, have you ever? Most likely not and the state does not really care, you are selling something on a one time basis and not for that much money you will be fine....

 

The rules vary by state. For Idaho it's the buyer who will pay the sales tax at the time they register the car. There is extra paperwork if the value of the car is zero in the transaction.

[+Renegade Knight]

My question is, how did we, as free people claiming to live in a free country, ever allow the government to get this kind of control over our lives? Those who gave their lives, their fortunes and their precious honor to found this nation must be rolling over in their graves.

 

Since you and your predecessors elected the representatives who while representing your interests passed the laws creating the sytem that you don't like now I'd say everything worked out as planned. You may not like the system but it didn't get there by royal decree. The was the point of the system built by our forefathers.

 

Don't confuse paying tax which in one form or another is absolutly required in todays world for a lack of freedom. Freedom gives you the choice of what version of tax you would like to fight for. It doesn't give you a choice on what type of tax system you were born into. That was decided before you were born by others who fought for (and against) what we have now.

[+Riverside]

Live Free or Die.... No Sales Tax in N.H.

[+SunshineGang]

In michigan we are required to pay the states 6% sales tax on products we purchase. So if the vendor does not charge us we are required to put it on our state income tax. So this would cover any out of state purchases we have made such as geocoins.

 

Of course we diligently keep all our receipts and file accordingly.

 

[Phantom_Dog]

The answer to all of this is simple. DO NOT SELL YOUR GEOCOINS. TRADE THEM!

[+crake]

The answer to all of this is simple. DO NOT SELL YOUR GEOCOINS. TRADE THEM!

 

Doesn't matter. You still technically have to report income due to value of the traded item under IRS trade/barter provisions.

[+nielsenc]

The answer to all of this is simple. DO NOT SELL YOUR GEOCOINS. TRADE THEM!

 

Doesn't matter. You still technically have to report income due to value of the traded item under IRS trade/barter provisions.

 

I think it is wise for anyone asking these questions to consult with their friendly local accountant. .

[+Jan and the Percey Boys]

My question is, how did we, as free people claiming to live in a free country, ever allow the government to get this kind of control over our lives? Those who gave their lives, their fortunes and their precious honor to found this nation must be rolling over in their graves.

 

wasn't it a tax on tea started your country!!!

 

Here in the uk we have to pay 17.5% tax

[+SunshineGang]

My question is, how did we, as free people claiming to live in a free country, ever allow the government to get this kind of control over our lives? Those who gave their lives, their fortunes and their precious honor to found this nation must be rolling over in their graves.

 

wasn't it a tax on tea started your country!!!

 

Here in the uk we have to pay 17.5% tax

 

perhaps you need to have a tea party

[+crake]

I think it is wise for anyone asking these questions to consult with their friendly local accountant. .

 

Agreed - please don't take anything you read in this forum as the final word. Always consult a qualified tax preparer regarding the particulars of your situation.

 

I know I do (for my situation, not yours