Posted on 09/15/2005 7:03:21 AM PDT by groanup
And who's gonna come after me? My purchases are completely legal business expenses.
State sales tax adminsitrators auditing the conduct of a shell business that has insufficient sales tax collections.
To qualify for for business exemption, you must register for business certification which opens you to the inevitable audit.
Insufficient sales and tax collections, its a hobby, no tax free purchases,.I don't have sales or tax collections, I get paid every time someone clicks a Google Ad on my website. It's advertising revenue for ad being sold by Google. It's a completely legitimate business that would likely lose a bunch of money. Of course, there's the chance, however small, that my site would be a hit and I would get a ton of traffic and could actually make a profit. Is the government going to determine whether my business is viable or not?
Insufficient sales and tax collections, its a hobby, no tax free purchases,.I don't have sales or tax collections, I get paid every time someone clicks a Google Ad on my website. It's advertising revenue for ad being sold by Google. It's a completely legitimate business that would likely lose a bunch of money. Of course, there's the chance, however small, that my site would be a hit and I would get a ton of traffic and could actually make a profit. Is the government going to determine whether my business is viable or not?
State sales tax adminsitrators auditing the conduct of a shell business that has insufficient sales tax collections.I'm not selling anything. Why would I have sales tax collections?
The business owner, just like today.OK. I intend to make a profit, so I don't have to pay the sales tax. Sweet!
But you will have to collect the sales tax on your sales by the liscensed business.
I don't have sales or tax collections,
If you are not registered and certified as a business, you don't have tax exemption on your purchases either.
Certified as a business, opens the door for audit, if no sales, no profit, its not business, its a hobby whatever you might want to call it.
That is what the hobby classification is all about. Those that would register to obtain the business certificate for tax free purchasing but do not meet the standards of an operating business and thus do not qualify for tax free purchases for a business.
The FairTax is a brick and mortar tax in an internet world.
No business certification, no tax free purchasing for business use. Works whether internet business or brick and mortar.
But you will have to collect the sales tax on your sales by the liscensed business.Are you saying I have to collect the sales tax on the business to business transaction between me and Google (I would have no other client and no sales, per se).
If you are not registered and certified as a business, you don't have tax exemption on your purchases either.The only revenue I get is solely from Google - a business. There are no taxable sales from my site, just ads provide by Google.
Boortz is such a doofus. This is just his attempt to rake in some cash by tagging along with another guy's idea. Debating the "fair tax" is a waste of oxygen. It will never happen. I will also never forgive that gasbag for his heartless ridicule of Terry Schiavo and her family, and lionizing of Michael Schiavo.
If you are not selling to a retail customer, then no, you don't need to collect the sales tax. At least that is how I understand it.
Why the circular conversation?
There are no taxable sales from my site, just ads provide by Google.
Fine with business certification. That certification is what qualifies you as a business for business tax free purchases and monitoring by the state sales tax authority.
If you are paid by google you are providing a service to a business which merely passes cost on up the marketing chain until tax is collected at a final consumption sale, with a business certification your business' purchases would be tax free, pProvided business use is established on your purchases without conversions to personal use. That is one function of sales tax audits.
If you are converting your business purchases to personal use as determined under sales tax audit of your certified business then you have a bit of a problem under the enforcement statutes and owe taxes and any potential penalties as well if a fraudulent conversion is demonstrable.
What I don't understand is how to factor in the tax exempt status for post-tax money I already have in savings.
That money was taxed under the old/current system. If we switch systems, and place a FT in place of the old system, why would prior post-tax money be subject to the tax? It would be taxed twice.
even though I would probably lose a lot of money.
In which case you won't be at it for very long will you, unless losing money is a hobby of yours?
In which case you won't be at it for very long will you, unless losing money is a hobby of yours?My expenses are stuff I would be buying anyway. My use of them would not be for "personal" use, but would be me evaluating the products (in real world situations, of course) so I can review them on my site. Who is going to tell me these expenses are legitimate business expenses?
Well that’s where you and I will respectfully disagree...
I think the “rewards” to the black-marketeer and their customers will outweigh the “risks”.
You think the “risks” will outweigh the “rewards”.
I’m still on the fence on the Fair Tax issue.
Dear Mind-numbed Robot,
Well, what you say is partly true, to a limited degree, but kind of irrelevant to the point - which is that the taxes on the very wealthy will mostly decline.
Most of these folks will invest in businesses that pay wages, buy services, and purchase products. All these activities will be exempt from the NRST. Certainly, eventually, employees get their share, and will spend and be taxed, but as has been pointed out so many times before, all we're doing is moving the tollbooth where we're collecting the taxes.
Bottom line - the very rich make out very well with this.
Not that I'm complaining, as I wouldn't object to being in that category sooner or later, myself.
;-)
sitetest
Yeah. LOL!
Well how long are you going to evaluate them? How will you dispose of them? What are you going to be reviewing? give some examples please. And if they are for business use not personal use, you wouln't be caught using them for personal use would you? As far as making a profit, now businessed are subject to a test to determine if they are a hobby or business, some people try the same thing now, and may or may not get away with it. Yours is not a new idea.....I doubt you could prove to a reasonable man that yours was a legitimate business unless after a period of time you made a profit. Are you going to be competing with consumer Reports? C/Net etc? Clearly this is one area that will be subject to review just like it is now...How many people/corporations write off questionable items now? How much money will you save compared to your time and effort and risk? With fewer places to look for questionable tactics compared to now, I think you are barking up the wrong tree...
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