Handgun Permit Review Board Reform

Schipperke · Jun 4, 2015

Mr H said:
I have been considering getting back into custom golf club building, fitting and repair... I suppose I would have to see what the threshold would be between 'hobbyist' and 'business'...

IRS will let you know

. That only comes up with people in hobbies trying to write off things pretending to be a business. Sounds like your venture would bring in taxable income, and as long as that is the case, not a hobby. People in the horse business that lose money year after year get much scrutiny on this..

Biggfoot44 · Jun 4, 2015

The Tax Man rarely complains about people wanting to pay taxes.

Mark75H · Jun 4, 2015

Biggfoot44 said:
The Tax Man rarely complains about people wanting to pay taxes.

The MD Comptroller's office does. Once you fall below a certain monthly or quarterly quota, they don't want you buying wholesale without paying sales tax or collecting sales tax.

You can always apply for a tax exempt number, but if you can't keep up a volume that the Comptroller's office sees as profitable to the state to handle the paperwork, your number will be revoked.

CypherPunk · Jun 4, 2015

Mark75H said:
The MD Comptroller's office does. Once you fall below a certain monthly or quarterly quota, they don't want you buying wholesale without paying sales tax or collecting sales tax.

You can always apply for a tax exempt number, but if you can't keep up a volume that the Comptroller's office sees as profitable to the state to handle the paperwork, your number will be revoked.

Source?

Mr H · Jun 4, 2015

Mark75H said:
The MD Comptroller's office does. Once you fall below a certain monthly or quarterly quota, they don't want you buying wholesale without paying sales tax or collecting sales tax.

You can always apply for a tax exempt number, but if you can't keep up a volume that the Comptroller's office sees as profitable to the state to handle the paperwork, your number will be revoked.

I could see that, if you're not a reseller.

But, then, I thought that was the main purpose of a tax-exempt number, to ensure goods were [ostensibly] only taxed once.

Mark75H · Jun 4, 2015

Mr H said:
I could see that, if you're not a reseller.

But, then, I thought that was the main purpose of a tax-exempt number, to ensure goods were [ostensibly] only taxed once.

Correct, if your volume is low enough, you pay the sales tax at the wholesale level and don't collect as a retailer.

Even as a reseller, it doesn't matter. If you aren't collecting enough $$$$ to make the paperwork processing worthwhile to the state, they want you paying sales tax on your purchases rather than collecting it on your sales.

Been there, done that when I closed my full time shop and went to work for someone else, still doing a little work on the side of my own. Tried to keep the number I'd been using for 10 years, but fell below the threshold.

CypherPunk · Jun 4, 2015

When business slows down, they switch you from monthly to quarterly reporting.

I've never heard of a resale tax Id being revoked.

The state still collects any taxes you charge when you sell goods. If you no longer had a resale tax Id, how would you pay Frachot his 6%?

Mark75H · Jun 4, 2015

CypherPunk said:
When business slows down, they switch you from monthly to quarterly reporting.

I've never heard of a resale tax Id being revoked.

The state still collects any taxes you charge when you sell goods. If you no longer had a resale tax Id, how would you pay Frachot his 6%?

Yep, went from monthly to quarterly, then revoked. If I recall, I could have asked for another year of quarterly if I told them I expected my taxable volume to go back up, but I didn't want to lie to them.

Franchot gets his when the business buys, the sales tax is being collected - just once, when the wholesaler collects it.

In a labor heavy service trade, the parts/materials can be a very small part of a big job.

Biggfoot44 · Jun 5, 2015

Still pay income taxes on the profits.

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