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Excise tax on custom grip
Posted by:
Andy Dochterman
(---.sw.biz.rr.com)
Date: March 20, 2011 02:47PM
Did some searches and didn't come up with the info I need. Most of the FET info goes towards whole rods that pretty much fall to the cap $10 limit, but wondering about smaller components. Basically, if you make a custom grip, what is the FET rate to use? If it sells for $10. I believe the component will fall under FET due to it being something that exists new after component assembly. Take'er Eazy Andy Doc Re: Excise tax on custom grip
Posted by:
Tom Kirkman
(Moderator)
Date: March 20, 2011 04:40PM
Yes, if it is made specifically for use on a fishing rod, FET is due.
Read the excise tax article on the library page. The Constructive Sales Price (60% of the selling price) is in effect if you are selling direct to the end user. Otherwise, 10% if selling to a reseller. ........... Re: Excise tax on custom grip
Posted by:
Jim Gamble
(97.106.17.---)
Date: March 20, 2011 05:40PM
What Tom said ... PLUS ... my opinion would be that 10% would be due no matter what. IMO, it would be impossible to have an "end user" to a set of grips. Here's why ... the blank that the grip is being attached to has NOT been subject to FET as a finished rod. Meaning that all raw components would be subject - including the grips.
To be sure, give the IRS a call. The fellow that was taking calls on Sportfishing Tax questions is Jack Brown @ 231-932-2057. Hope this helps. Re: Excise tax on custom grip
Posted by:
Tom Kirkman
(Moderator)
Date: March 20, 2011 05:48PM
All components are subject to the FET, unless you are selling to a manufacturer that has a 637 exemption certificate on file. Most major rod manufacturers have these as they'll be paying the tax in full on each completed rod they manufacture.
.......... Re: Excise tax on custom grip
Posted by:
Andy Dochterman
(---.sw.biz.rr.com)
Date: March 20, 2011 06:36PM
Thanks guys...that was what I was thinking. Wonder how many selling on @#$%& actually account for FET Take'er Eazy Andy Doc Re: Excise tax on custom grip
Posted by:
Andy Dochterman
(---.sw.biz.rr.com)
Date: March 21, 2011 07:28PM
The other thing I just want to make sure I'm doing right...does the FET only apply to components and not the cost labor involved? Take'er Eazy Andy Doc Re: Excise tax on custom grip
Posted by:
Jim Gamble
(97.106.17.---)
Date: March 21, 2011 08:37PM
FET applies to the FINISHED price of whatever item you are selling. If it is a set of grips, as original mentioned, it would be based on the selling price of the set. Sorry, only registered users may post in this forum.
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