fellsdfpifasd;l Lots of questions, thanks for reading.
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fellsdfpifasd;l Lots of questions, thanks for reading.
Last edited by ryanw; 01-10-2022 at 11:05 PM.
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I get paid by check so I'd say that there is a record of what they pay me.
People may laugh at me, but that's ok. I laugh all the way to the bank.
Metal Recycling Entrepreneur
hmm, taxes on scrap? really?... when the government stops paying interest to the federal reserve, then i will take the time to write them a check for the few dollars i made scrapping.
i assume you are running a recycle business and must follow the rules of our failed system... taxes suck, sry but when the gov. prints money and then give it away to the central bank so they can borrow it... OMG, don't get me started, lol
gl with your taxes...
Last edited by NWOdrudge; 01-15-2013 at 05:52 PM.
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I don't know about Ca. tax laws but here in Florida the only people that have to collect sales tax is when you are selling something retail. If you are just selling to a scrap yard sales tax dose not come into play, if you are selling something for more than scrap value then maybe that would diffrant. I have never received a 1099 from a scrap yard. I'm sure if you or anyone else asked the scrap yard they would have the proper permits that sow that thay are buying wholesale there for don't have to pay sales tax. The same thing goes for e-waste buyers. If I'm wrong let me know but I think that's the way it works.
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I am not a tax expert
Nor do I play one on TV
BUT the way I do it >>
Income from Craigs, eBay and the yard and any other income with no 1099 goes on Schedule C
Part 1 Income
Enter other gross receipts or sales (not reported on 1099)
You shouldn't have to pay sales tax on the items you sold to the scrap yard. However, the net income you received from those sales are taxable.
I would definitely consult an accountant in your area.
Metal Recycling Entrepreneur
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Fournines above is correct. Here's a little more info:
Have you really collected sales tax from the scrap yard? In other words, have you calculated and collected 7.5% (maybe 8% in Sacramento) on the final sale price of items sold to the end user? If you did, you are legally a tax agent for the state and have to send what you collected to the Board of Equalization.Originally Posted by rawresale
In short, if you just sold stuff to a scrap yard, you didn't collect sales tax and you don't have to send anything. For sales tax. If you assessed and collected tax on retail sales, you have to send that in of course.
No. But if the owner is right and you are crazy, and you really want to go by the book, you would fill out California BOE401EZ and add the scrap amount to line 1 and line 4, resulting in zero tax due on that amount. If audited, you would get your scrap yard to fill out a BOE-230, resale certificate.
Yes, virtually all of the time. It is only taxable if you sell it to the end retail consumer. For example, if you fabricated a sculpture out of scrap iron and sold it to someone who displayed it on their front lawn. You would collect sales tax on that sale.
No. Not sales tax. And again, you only "pay" sales tax on what you purchase. You "collect" sales tax for the state on items that you sell on a retail basis.
Income tax is a whole different can of worms; see JohnC 4x4 comment above.
Last edited by volvoscrapper; 01-16-2013 at 11:00 AM. Reason: clarifying tax
Happy that is not entirely true. As a business in the state of Florida you are required to file sales tax quarterly on form DR-15. All sales are reported and all exempt sales are reported. Tax is owed on any sale that is not exempt. For a sale to be exempt the buyer must provide a tax resale certificate form DR-13. Form DR-15 also asks for tax on internet and out of state purchases. I'm dealing with an out of state buyer right now that is resisting giving me a resale cert because they are not in Florida.
All of my yards ask for my resale certificate on what they sell me and I have them provide me with theirs if I sell to them.
According to the staff attorney at Dept of Revenue I talked to dealing in E-scrap you are required to have a second hand merchandise and a secondary metal license for ferrous and non-ferrous metal. If i had not had the resale certificates from my buyers I would owe $4,225 in sales tax for last quarter alone. I did have to pay $114 for internet purchases of tools and my scale.
Last edited by jaydee1445; 01-16-2013 at 12:06 PM.
Metal Recycling Entrepreneur
Just like any business you keep good books. You buy and show expense, you sell and show net profit. Fed is pushing on tightening regs ofc. But it's your responsibility on your side to show and claim and its the other sides responsibility to do the same.
Metal Recycling Entrepreneur
Jaydee, I was also under the impression that if there is no retale sales, sales tax is not applicable. Although upon looking more into it i found this:
dor.myflorida.com/dor/taxes/secondhand_dealers_recyclers.html
and dor.myflorida.com/dor/forms/2012/gt800036.pdf
I am still not too clear though. I am in the middle of starting a new e-scrap business and am trying to make sure I cover all my basis. I am just not sure exactly what business liscences I need as well as how to handle taxation.
ALso in the seccond link it says"Secondary metals recycler – Any person, corporation, or other business organization, operating at a fixed location that buys, gathers, or obtains ferrous or nonferrous metals that are converted into raw material products."
How would you define "fixed location" If I do primarily pickups and simple sorting then selling to my main buyer would you consider my business to be at a fixed location?
Metal Recycling Entrepreneur
my buddy does his taxes.keeps all the yard receipts and his daughter files for him. think he said hegoes under self employed,
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