tax question

[rhoffart]

I have a specific tax question. Last month I did the whole legal thing; DBA, EIN, Bank account and Tax ID. Now my question is about my SmugMug sales. For ease of math, let’s say you make a sale of $100 and $50 of that is profit. I’m almost sure you only pay tax on the $50 profit but not sure when.

Do you state in on the tax form when you make the sale?

Do you state it on the tax form when you claim the money from SmugMug (if different quarter)?

Do you not claim it and wait for a 1099?

I know, get an accountant ... but if someone knows this answer I appreciate it.

[Bob_S]

State sales tax is quarterly and is on the $100 + whatever the shipping was. Income tax is on the $50 and is whenever you pay your income tax.

[rhoffart]

Wow. That was simple. Thanks

But wait, sales tax ... Do I report or does smugmug?

[Steelsun]

If you collected the sales tax, you report it.

[sn805619]

Originally Posted by Steelsun

If you collected the sales tax, you report it.

+1

DBA, EIN, and Tax ID are on my list of things to do this week :)

[XtremePhoto]

Originally Posted by sn805619

+1

DBA, EIN, and Tax ID are on my list of things to do this week :)

I was told that you need your DBA, EIN and Tax ID Before you make a sale...even if your sale is only 10.00, you are supposed to have all this, especially the Tax ID before making a sale. I opted to just give it away and not even be hassled with it. I don't shoot for money, so it isn't an issue with me. Just stating what the Comptroller told me I would have to do.

-G-

[Bob_S]

Originally Posted by Steelsun

If you collected the sales tax, you report it.

I'm not sure that is right. I think it doesn't matter if you collect it or not. If you sold it, you owe it.

[Bob_S]

Originally Posted by rhoffart

Wow. That was simple. Thanks

But wait, sales tax ... Do I report or does smugmug?

Enter your tax rate into Smugmug and tell it that there is tax on shipping also. They will collect it and send it to you once a quarter.