# Tax Question



## vmj (Nov 17, 2008)

Just putting my first seasonal on paper to send it to customer.. We agreed on a price. Being that it is a house/commercial we add tax to the agreed price ? Thanks....


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## Philbilly2 (Aug 25, 2007)

Are you set up to charge and reciprocate sales tax?

If not, I would not indicate that you are charging tax.


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## vmj (Nov 17, 2008)

Philbilly2 said:


> Are you set up to charge and reciprocate sales tax?
> 
> If not, I would not indicate that you are charging tax.


Yes Tax is on all commercials. Just wondering how it goes with seasonal. wondering if I add it on or should I of figured it into seasonal price..


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## vmj (Nov 17, 2008)

hmmm


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## JMHConstruction (Aug 22, 2011)

My account just caught that I wasn't taxing my commercials last year. All other work I do is residential, which is exempt from sales tax other than materials. Told me to start adding it on. I assume it just came out of my pocket.

Good example of why I gladly pay someone to do things I have no idea how to do.


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## vmj (Nov 17, 2008)

lol I did the same years ago too... That's why I pay someone too lol don't want to call him, so I figured I check here about the tax on seasonal. I know it needs tax being commercial, just don't know if I should of added it into price or list it sep like always. Fisrst seasonal and this guy was tough to deal with already. So I'm thinking he will try to be a beater when it comes to adding on the tax.


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## Philbilly2 (Aug 25, 2007)

vmj said:


> lol I did the same years ago too... That's why I pay someone too lol don't want to call him, so I figured I check here about the tax on seasonal. I know it needs tax being commercial, just don't know if I should of added it into price or list it sep like always. Fisrst seasonal and this guy was tough to deal with already. So I'm thinking he will try to be a beater when it comes to adding on the tax.


Wait... so you pay an accountant but you don't want to call him????


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## Philbilly2 (Aug 25, 2007)

Bud, we call all give you advise from what we have done, but you need to call your accountant...


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## Defcon 5 (Mar 20, 2014)

Philbilly2 said:


> Wait... so you pay an accountant but you don't want to call him????


Maybe he is Bizzie......lowblue:


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## vmj (Nov 17, 2008)

was looking for a quick answer to get this done last night and in the mail
Guess I thought wrong


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## Mark Oomkes (Dec 10, 2000)

vmj said:


> was looking for a quick answer to get this done last night and in the mail
> Guess I thought wrong


Look at some of the advice expounded here, do you you really want to trust it on something as important as this?

Taxes are state by state, sometimes city by city. Check with your accountant.


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## vmj (Nov 17, 2008)

lmao......... ya TRUE... What was I thinking


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## Randall Ave (Oct 29, 2014)

I've kinda noticed that, people think all the plow money goes south, they never want to pay the tax.


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## MSsnowplowing (Nov 1, 2012)

vmj said:


> Just putting my first seasonal on paper to send it to customer.. We agreed on a price. Being that it is a house/commercial we add tax to the agreed price ? Thanks....


yes you add the tax 6.35% for CT and make sure you put it aside.

Don't forget about the federal tax either, I did that one year and oh vey.

Not the tax but misplaced the 1099 they sent.
I thought I had put it in my tax folder for the accountant.

It was only $1,000 dollars -(small site) but I ended up paying $700 dollars on it when it was all said and done, needless to say I double check everything now to make sure its in the folder and have a check list.


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## MSsnowplowing (Nov 1, 2012)

vmj said:


> lol I did the same years ago too... That's why I pay someone too lol don't want to call him, so I figured I check here about the tax on seasonal. I know it needs tax being commercial, just don't know if I should of added it into price or list it sep like always. Fisrst seasonal and this guy was tough to deal with already. So I'm thinking he will try to be a beater when it comes to adding on the tax.


BTW
commercial or residential any income received for plowing is taxable in CT


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## FredG (Oct 15, 2012)

All states are different, I'm not even set up to collect sales tax. Sales tax here is more of a retail thing, Meaning the beer and liquor store, Parts, vehicles etc. The materials we pay tax. Concrete, Stone, Pipe etc.


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## FredG (Oct 15, 2012)

We all on the same page? Are we talking about sales tax or Income tax?


Randall Ave said:


> I've kinda noticed that, people think all the plow money goes south, they never want to pay the tax.


Better be collecting cash, That's a dangerous game.


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## MSsnowplowing (Nov 1, 2012)

FredG said:


> All states are different, I'm not even set up to collect sales tax. Sales tax here is more of a retail thing, Meaning the beer and liquor store, Parts, vehicles etc. The materials we pay tax. Concrete, Stone, Pipe etc.


Wish CT was like that, I personally don't like it and think a service shouldn't be taxed and the kicker is you have to do it even for say that 30 to 50 dollar residential driveway

which is another reason I try to stay away from residential because a lot guys don't charge sales tax

I always get the "why did you add tax the other guys never did" for a few I have done and that gets tiresome after a while having to explain CT taxes plowing services.

Easier just to stay away and let someone else do them.


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## FredG (Oct 15, 2012)

MSsnowplowing said:


> Wish CT was like that, I personally don't like it and think a service shouldn't be taxed and the kicker is you have to do it even for say that 30 to 50 dollar residential driveway
> 
> which is another reason I try to stay away from residential because a lot guys don't charge sales tax
> 
> ...


Fo sho, If it's the law I'm collecting it. The state can come and confiscate equipment, Cash etc. Retailers in NY been in some serious issues over sales tax. The State has similar penalties to the IRS. Lots of tax crooks take in $30K and send in $10K there not feared by the risk, I am.


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## vmj (Nov 17, 2008)

taxes defiantly suck in this state....


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## snowangel13 (Oct 23, 2008)

vmj said:


> Just putting my first seasonal on paper to send it to customer.. We agreed on a price. Being that it is a house/commercial we add tax to the agreed price ? Thanks....


Calculate the tax, add it to the price and that's your seasonal. Place a note that all sales tax is included in fixed seasonal rate.


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## Mark Oomkes (Dec 10, 2000)

snowangel13 said:


> Calculate the tax, add it to the price and that's your seasonal. Place a note that all sales tax is included in fixed seasonal rate.


I would list it separate, that way your customers know you are following the law and it can be tracked easily to pay the state.

And if you get audited, it'll go much easier.


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## FredG (Oct 15, 2012)

Mark Oomkes said:


> I would list it separate, that way your customers know you are following the law and it can be tracked easily to pay the state.
> 
> And if you get audited, it'll go much easier.


Ditto,


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## Mr.Markus (Jan 7, 2010)

I like the advice of talking to your accountant, so many variables. If you offer a discount for prepay -does the full rate get taxed or just the remitant price? I have subbed work to companies a lot bigger than me, one of which I was sure screwed up their tax rate (for some reason it stood out to me) I asked them about it and they scoffed at me, like “this little business is telling us we’re wrong.” Their year end had them sending refund cheques out to every one of their customers, that couldn’t have been a good audit.


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## JMHConstruction (Aug 22, 2011)

FredG said:


> All states are different, I'm not even set up to collect sales tax. Sales tax here is more of a retail thing, Meaning the beer and liquor store, Parts, vehicles etc. The materials we pay tax. Concrete, Stone, Pipe etc.


Our poor customers in KS get double taxed on materials. We pay when we buy it, then they pay when they buy it from is. Our residientals are exempt on labor tax, but I feel it should be the opposite. If I buy $5k in lumber and get charged 10% taxes, thats $5.5k I'm marking up, and then they pay, say $7k plus another 10% sales tax. It's dumb, they should be exempt on materials and charged labor, I think. Or let contractors be exempt on materials.


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## FredG (Oct 15, 2012)

Mr.Markus said:


> I like the advice of talking to your accountant, so many variables. If you offer a discount for prepay -does the full rate get taxed or just the remitant price? I have subbed work to companies a lot bigger than me, one of which I was sure screwed up their tax rate (for some reason it stood out to me) I asked them about it and they scoffed at me, like "this little business is telling us we're wrong." Their year end had them sending refund cheques out to every one of their customers, that couldn't have been a good audit.


Not smart to judge someones knowledge on the size of there company. Many small family owned biz are very profitable and run under the same rules - law as bigger company's.


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## FredG (Oct 15, 2012)

JMHConstruction said:


> Our poor customers in KS get double taxed on materials. We pay when we buy it, then they pay when they buy it from is. Our residientals are exempt on labor tax, but I feel it should be the opposite. If I buy $5k in lumber and get charged 10% taxes, thats $5.5k I'm marking up, and then they pay, say $7k plus another 10% sales tax. It's dumb, they should be exempt on materials and charged labor, I think. Or let contractors be exempt on materials.


Boy that almost sounds illegal. I was associated with a retail store beer store lol. The product goes from the brewery to the distributors from there to the retail store. No tax is collected from no parties involved.

At the retail store when the customer comes in for a case or five they pay the 8.25% sales tax on the purchase. The retailer sends this sales tax to the state quarterly.

In the construction trade like yourself the contractor pays all sales tax on materials, Your client should pay zero because you already paid sales tax. There is no tax on labor sorta speak in NY. They get there's in payroll taxes etc. Another words you have to be a retailer to collect sales tax.


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## FredG (Oct 15, 2012)

JMHConstruction said:


> Our poor customers in KS get double taxed on materials. We pay when we buy it, then they pay when they buy it from is. Our residientals are exempt on labor tax, but I feel it should be the opposite. If I buy $5k in lumber and get charged 10% taxes, thats $5.5k I'm marking up, and then they pay, say $7k plus another 10% sales tax. It's dumb, they should be exempt on materials and charged labor, I think. Or let contractors be exempt on materials.


Boy that almost sounds illegal. I was associated with a retail store beer store lol. The product goes from the brewery to the distributors from there to the retail store. No tax is collected from no parties involved.

At the retail store when the customer comes in for a case or five they pay the 8.25% sales tax on the purchase. The retailer sends this sales tax to the state quarterly.

In the construction trade like yourself the contractor pays all sales tax on materials, Your client should pay zero because you already paid sales tax. There is no tax on labor sorta speak in NY. They get there's in payroll taxes etc. Another words you have to be a retailer to collect sales tax.


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## Philbilly2 (Aug 25, 2007)

JMHConstruction said:


> Our poor customers in KS get double taxed on materials. We pay when we buy it, then they pay when they buy it from is. Our residientals are exempt on labor tax, but I feel it should be the opposite. If I buy $5k in lumber and get charged 10% taxes, thats $5.5k I'm marking up, and then they pay, say $7k plus another 10% sales tax. It's dumb, they should be exempt on materials and charged labor, I think. Or let contractors be exempt on materials.


What? you pay the tax when you buy it, and you get paid back when the customer buys it from you. It is only taxed one time.

What you mark up is just that...mark up, not tax.


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## Mark Oomkes (Dec 10, 2000)

Michigan collects sales tax on vehicles every time it is sold. Unless it's to a relative.


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## LapeerLandscape (Dec 29, 2012)

Mark Oomkes said:


> Michigan collects sales tax on vehicles every time it is sold. Unless it's to a relative.


Even after it goes to the scrap yard and parted out into 500 pcs.


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## Mark Oomkes (Dec 10, 2000)

LapeerLandscape said:


> Even after it goes to the scrap yard and parted out into 500 pcs.


That 2/to.


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