[TheForge] opinions of tax status

[Phlip]

Ene bichizh ogsen baina shuu...

> I figured I'd find out what the opinion is here before I talk to my
> accountant.  When  we sell an item we've forged and/or fabricated
> directly to a customer, are we providing a nontaxable service, or are we
> selling a retail item that we should be collecting state sales tax for?
> I'm just fishing for personal opinions here, and will let my accountant
> be the final word.  I'm new to actually trying to make a living at this,
> and so far, I haven't collected tax on anything, although most of what
> I've sold has been to a retail outlet, so I haven't needed to.  I did do
> some commission work through the Christmas season though, and this was an
> afterthought.
>
> Bob Evarts
> Forging a good life from the raw material of time

Well, when I applied for mt CT tax number, the nice young man at the tax
office explained it to me like this:

If I buy materials for resale, they are tax exempt (to me).
If I buy them for shop use, they are taxable, but the tax can be deferred as
part of depreciaton. There are also tax credits involved.
If I sell something to a customer in the state of CT, I need to collect
taxes.
If I sell something out of state, or to a business, I don't.

I have a whole pile of papers and pamplets here that the CT tax office gave
me, which explains things in detail, and the young man in the office gave me
his name and number if I have any questions. My suggestion would be to go to
your local tax office, get your number and the paperwork, read through it,
ask questions, then leave it to your accountant ;-) If you're in CT, I'll
give you the name and number of the nice young man who was so helpful to me.
Not only was he helpful with explaining what I needed to do, but he also
gave me several suggestions for venues where I might sell my smithing and
leather goods.

Phlip

 If it walks like a duck, and quacks like a duck, it is probably not a
cat.

Never a horse that cain't be rode,
And never a rider who cain't be throwed....