[TheForge] opinions of tax status

[Larry]

Another question on this same line........
    When we make an item, that  has $XXX.XX of steel in it, plus forge time,
coal and such, plus what ever other expendables were required to manufacture
it, plus labor.  And then we sell it to the customer for $XXXX.XX, how do you
determine the actual profit on the item for income tax purposes?

Thanks,

Larry

Bob Evarts wrote:

> 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
>
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