Tax guru's (non gambling issue)

bobbyfk · 08-11-10, 01:41 PM

go to a tax professional

OmgUrMom · 08-11-10, 01:42 PM

god i'd hope he would know that if he owns the business. not sure though.

Cabo · 08-11-10, 01:49 PM

Doesn't sound like he should be paying any sales tax, since like you said, he is not selling any goods. If for whatever reason, the state is making him pay sales tax, he needs to pass this on to his customers.

ProfaneReality · 08-11-10, 01:50 PM

the debate arose when a lawyer he was talking to asked him "are you sure you are even required to pay sales tax" so that got the wheels turning. he was always under the impression he had to, but the lawyers comment placed a seed of doubt.

DukeJohn · 08-11-10, 01:54 PM

Originally posted by ProfaneReality

debating with a buddy of mine, he has a small cleaning business, 1 office building... he has been paying sales tax.. I dont think he is required to...

is there really a sales tax on services such as cleaning when there is no exchange of goods ? he already pays income tax and double social security, should he be paying sales tax too??

Sales tax is a state/city tax. Some states do have sales tax on services, as in your are selling your services (goods). Anyway, nearly all states will list services that are to have sales tax, so just search sales tax for your state. Since you did not say which state, we can not search for you.

BoL,

ProfaneReality · 08-11-10, 02:03 PM

just wanted to throw it out there while i was fiollowing the games... didnt want to dig if someone knew offhand

and after 5 minutes of looking... yes, he has to pay sales tax if the services exceed $5,000

OmgUrMom · 08-11-10, 02:31 PM

over 5,000 for his yearly business or for each individual purchase?