Storage Auctions

Taxes - To pay or not to pay!?

Taxes - To pay or not to pay!?
« on: February 27, 2011, 07:21:08 AM »
A word no one likes, I know.  I read somewhere that we have to pay sales tax on the units. Is this where starting an S-Corps, LLC or some type of business structure comes into play? If so, what is the prevailing thought on "type?"

Re: Taxes - To pay or not to pay!?
« Reply #1 on: February 27, 2011, 04:25:00 PM »
Your form of business doesn't affect whether you pay sales tax.  However, it may have ramifications as far as income tax goes.  To avoid sales tax, you need to register with your state and show a reseller certificate at the time of purchase.  You won't pay tax on the purchase, but you will still collect sales tax when you sell, and pay it to your state.

(Local laws apply.)

Offline terry

Re: Taxes - To pay or not to pay!?
« Reply #2 on: February 27, 2011, 06:26:56 PM »
in GA
sometimes there is a sales tax
sometimes a buyers premium
sometimes a deposit
every auctioneer and storage facility is different.
As for me I pay the tax if they want it.
but sell my stuff at yard sale and flea market
If I had to keep up with taxes I'd go back to a real job

Re: Taxes - To pay or not to pay!?
« Reply #3 on: February 28, 2011, 07:21:06 AM »
in GA
sometimes there is a sales tax
sometimes a buyers premium
sometimes a deposit
every auctioneer and storage facility is different.
As for me I pay the tax if they want it.
but sell my stuff at yard sale and flea market
If I had to keep up with taxes I'd go back to a real job

Legally, we are responsible for collecting sales tax and paying it to the state regardless of whether we sell in a store or at a yard sale/flea market.  The only time we wouldn't be required to collect sales tax is if we are selling over the internet to an out-of-state buyer.

edited to add that we also wouldn't collect sales tax if we were to sell an item to a registered business which is going to resell the item (and has a reseller cert), since sales tax is only paid by the end user.

Offline terry

Re: Taxes - To pay or not to pay!?
« Reply #4 on: February 28, 2011, 07:07:36 PM »
Legally, we are responsible for collecting sales tax and paying it to the state regardless of whether we sell in a store or at a yard sale/flea market.  The only time we wouldn't be required to collect sales tax is if we are selling over the internet to an out-of-state buyer.
really! must be why I can't remember the last time I got a tax refund.

Re: Taxes - To pay or not to pay!?
« Reply #5 on: March 01, 2011, 07:21:09 AM »
really! must be why I can't remember the last time I got a tax refund.
You appear to be confusing sales tax with income tax.  Sales tax collected is not income, so would not affect whether or not you receive a tax refund.

Offline rulesforrebels

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Re: Taxes - To pay or not to pay!?
« Reply #6 on: March 01, 2011, 06:03:32 PM »
Your supposed to pay taxes on any and all income. If your just selling things around the house and you don't profit from the sale no need to report, storage winnings your supposed to report earnings.

As far as ebay/paypal goes they won't issue you a 1099 until you do 20k in sales and over 200 sales total. Its not one or the other both those need to be met.

Re: Taxes - To pay or not to pay!?
« Reply #7 on: December 08, 2020, 06:49:57 AM »
in GA
sometimes there is a sales tax
sometimes a buyers premium
sometimes a deposit
every auctioneer and storage facility is different.
As for me I pay the tax if they want it.
but sell my stuff at yard sale and flea market
If I had to keep up with taxes I'd go back to a real job


Yes, I agree with you


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