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Typo in FET article?
Posted by:
Chuck Mills
(---.grenergy.com)
Date: January 12, 2011 12:51PM
I have been trying to find the 60% rule in writing and noticed that the library article refers to 26 CFR 48.4216(9)-2:Constructive Sales Price, basic rules. Shouldn't that (9) be a (b)? _________________________________________ "Angling is extremely time consuming. That's sort of the whole point." - Thomas McGuane Edited 1 time(s). Last edit at 01/12/2011 12:52PM by Chuck Mills. Re: Typo in FET article?
Posted by:
Tom Kirkman
(Moderator)
Date: January 12, 2011 12:59PM
That is the rule number the IRS provided me with when I visited their offices in DC at the time the article was written. If it is a typo, it is on their end. However, others have used that rule number and the agent had no trouble finding it.
................ Re: Typo in FET article?
Posted by:
Chuck Mills
(---.grenergy.com)
Date: January 12, 2011 01:05PM
Maybe they changed their numbering (lettering) system.
Here it is: [ecfr.gpoaccess.gov] I can't find anything on Rul. 81-226 yet. _________________________________________ "Angling is extremely time consuming. That's sort of the whole point." - Thomas McGuane Re: Typo in FET article?
Posted by:
Tom Kirkman
(Moderator)
Date: January 12, 2011 01:27PM
I don't know - they proofed it.
.......... Re: Typo in FET article?
Posted by:
Bill Napier
(---.hosted.static.webnx.com)
Date: January 12, 2011 02:12PM
If you just want to know if the 60% rule exists and is valid I can assure you that it does and is. When I got audited a couple years back the agent had never heard of the "60%" rule. He told me I would have to prove it to him. I printed out the article and he took that code and looked it up and did not give me any more guff about the 60% amount I was claiming the liability on. I wonder how many rod builders have been screwed on the amount they are being taxed on due to not knowing about the 60% rule. I even wonder if the agents do know about it but just pretend not to in order to soak you for a little more tax money. Re: Typo in FET article?
Posted by:
bill boettcher
(---.dyn.optonline.net)
Date: January 12, 2011 06:06PM
What do they do with the extra - pocket it Bill - willierods.com Re: Typo in FET article?
Posted by:
Chuck Mills
(---.gctel.stellarllc.net)
Date: January 12, 2011 07:09PM
Is it still capped at $160? Can't find that either. I don't doubt that it exists, nor do I doubt that the article in the library is accurate. But if you do a Google on CFR 48.4216(9)-2 you won't get much, but a search for CFR 48.4216(b)-2 takes me right to it. Just an observation.
Thanks _________________________________________ "Angling is extremely time consuming. That's sort of the whole point." - Thomas McGuane Re: Typo in FET article?
Posted by:
Tom Kirkman
(Moderator)
Date: January 12, 2011 07:22PM
It's capped at $10. The tax is 10% of the selling price (or constructive sales figure) or $10, whichever is less.
.......... Re: Typo in FET article?
Posted by:
Chuck Mills
(---.grenergy.com)
Date: January 13, 2011 08:17AM
Right, I said that wrong. I was referring to this quote from the article. *As of September 30, 2005, The Sportsfishing Excise Tax on fishing rods has been capped at a maximum of $10. The following article is still accurate, but the maximum tax liability per rod is now $10. For custom builders, you should still figure and pay the tax as described in the article, on any rod that you sell for $160 or less. On rods selling for over that amount, your total liability will now be a flat $10.
When I do the math, that number comes to $167. I wasn't sure if that $160 figure was written in Rul. 81-226 since I can't find that online. Thanks for the help. I think I have what I need. _________________________________________ "Angling is extremely time consuming. That's sort of the whole point." - Thomas McGuane Re: Typo in FET article?
Posted by:
Tom Kirkman
(Moderator)
Date: January 13, 2011 09:52AM
The 60% rule is the "Constructive Sales Price" of an item which is sold direct from the manufacturer to the end user. The only figure involved is that such a constructive sales price is considered to be 60% of the retail selling price.
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