Not that Im aware of. If you sell 200 items or 20k a year, then you need a ein number or ss or tin number for paying taxes. Under those limits, then tax free in the eyes of the irs. It is kinda a grey area, but I do believe you need a state sales tax license to collect your state sales tax though.Originally Posted by mrsamsonite
Im currently equipped with a ein number and keep all records of everything I purchase including drivers license, address, and phone number of all things I buy to resell unless its under 20 dollars. If people don't like it, I have been known to dump my truck of their load right on their front lawn..LOL! I also do that for my protection in case I buy something stolen, so I have a record of where it came from. And I don't get arrested. It already saved my butt once when I sold a scrap phone I bought from a local pawn shop on ebay turned up stolen and had to refund the money. The state police when right after the source and left me alone with those records. I did have to reimburse though.
Thats the best I can tell. I need to sit down with a cpa to discuss this myself and if you find out something, let me know. But the license is a grey area. But if you do need a license then it opens a whole can of worms. Say your selling from your house. Then you need to get a zoning variance for a low impact based business, ie little or no foot traffic. Which is a whole another beast in itself.
The best is if your small time, 3 grand a month like me before expenses, then stay low and dont make waves. Thats my best advice.
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First part may be right but last sentence is just plain wrong.
Recyclable Material Merchant Wholesaler
Certified Zip-Tie Mechanic
"Give them enough so they can do something with it, but not too much that they won't do nothing."
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YAH >> the IRS wants their cut of all profit
And to the IRS it's all profit until you prove otherwise. Mike
"Profit begins when you buy NOT when you sell." {quote passed down to me from a wise man}
Now go beat the copper out of something, Miked
Nope those are PayPal rules, they will not send tax info on earnings unless you sell 200 items or 20k....they they will report and u need tax info. Or they will shut you down. You stay under those limits, free game. No taxes. Trust me, I know for a fact. PayPal rules as well as IRS....
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Just because you don't get a 1099 from someone doesn't mean the IRS doesn't require you to report your income stream. Your reading/interpreting things they way you want them to be not they way they really are.
Reporting Miscellaneous Income
No, not a chance in H e l l. I don't find myself in any of the predicaments that you do so I will keep doing things my way and you feel free to do it your way.
Last edited by KzScrapper; 05-21-2015 at 09:47 AM.
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I would say it depends if your state installed the law this year, some are researching it but didn't get enough support to get it to pass yet.
P & M Recycling - Specializing in E-Waste Recycling.
If you enjoy your freedom, thank a vet.
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It depends on the state. Here, in Wyoming, they would laugh me out of the sales tax office.
Since Wyoming does have a sales tax, you would need a sales tax license (You should have it if your state charges sales tax). Then, you charge sales tax on the items that are purchased in state, unless your state does it differently.
For me, I've yet to need to charge sales tax on an eBay sale- I've never sold anything in-state. If you're in a larger, more populated state though, I would have that license and be ready to charge sales tax.
More than Scrap Value Shipment Tips: http://www.scrapmetalforum.com/scrap...tml#post242349
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