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Making rods for family and friends?
Posted by:
Craig Mullins
(---.dhcp.mtgm.al.charter.com)
Date: October 06, 2012 08:30PM
At what point does making rods for family and friends become a business? By that I mean, what is the $ amount that makes it more than a hobby...profit wise. Re: Making rods for family and friends?
Posted by:
Tom Kirkman
(Moderator)
Date: October 06, 2012 08:36PM
If you sell a rod, for any amount, it is a business and things FET and sales taxes are due. There is no certain amount, nor any regard for whether you make a profit or loss. If you sell a rod, it's a business.
............. Re: Making rods for family and friends?
Posted by:
Craig Mullins
(---.dhcp.mtgm.al.charter.com)
Date: October 06, 2012 09:03PM
Good to know...thanks for the quick response. Re: Making rods for family and friends?
Posted by:
Craig Mullins
(---.dhcp.mtgm.al.charter.com)
Date: October 06, 2012 09:03PM
Good to know...thanks for the quick response. Re: Making rods for family and friends?
Posted by:
Dave O'Brien
(202.74.138.---)
Date: October 07, 2012 04:20PM
Craig,
Not sure about most people here but i call any work i do ( including building rods) for family and good friends Love Job's which mean they only pay for the parts/materials. Dave O'Brien Port Macquarie Australia Re: Making rods for family and friends?
Posted by:
Jeremy Johnson
(---.mycingular.net)
Date: October 07, 2012 07:04PM
Dave O'Brien Wrote:
------------------------------------------------------- > Craig, > > Not sure about most people here but i call any > work i do ( including building rods) for family > and good friends Love Job's which mean they only > pay for the parts/materials. That's totally how I feel.. I often wonder how upset Uncle Sam can really be if I'm not paying taxes on a build that I create for a friend for zero profit, just reimbursement for the credit card bill after I buy all the components. I hardly consider it "selling", its honestly just easier for me to attain the materials and have them reimburse me when the project is complete than have them hunt down the stuff for themselves. Edited 1 time(s). Last edit at 10/08/2012 11:04AM by Jeremy Johnson. Re: Making rods for family and friends?
Posted by:
Raymond Adams
(---.hsd1.ca.comcast.net)
Date: October 08, 2012 05:48PM
Fortunately or unfortunately, depending on your point of view, Federal and State tax codes regarding the manufacture & sales of outdoor sports equipment are not ambiguous and should not be taken with a grain of salt.
The FET is NOT paid by the rod builder it is collected then remitted. The Fed sends the FET to the State from which it came in support for the outdoor activities of it's population. ( I hope I got that right). It's supposed to be a good thing! Hobby builder's who build for family & friends and don't go about it in certain ways can get into some hot water so my advise is to know the laws in your state as well as the Federal Tax Code and proceed with caution and educated practices. My father & I do have a Custom Rod business license BUT I find it easier to build a rod for a friend or family member as a gift (100%). Birthdays & Christmas (early or late) are great times for that! If another person wants the "hobby" builder to build them a rod and the builder will do that for FREE less material costs, I would say the best way to go about it would be to have the friend aquire the materials themselves (with advise from the builder) and then provide said parts to the builder. NO $$$ changes hands between end user and builder. No sale = no FET and no sales tax. When the builder buys the parts then is re-paid by the end user, even if there was no profit, a sale still took place in the eyes of the powers that be and that is where the trouble can arise. Raymond Adams Eventually, all things merge, and a river runs through it.. Re: Making rods for family and friends?
Posted by:
Mike Sloan
(---.static.hckr.nc.charter.com)
Date: October 14, 2012 10:22PM
I read somewhere even if you build it and give it away you may be responsable for the taxes based on the value you gave away I don't know if this is true. Sorry, only registered users may post in this forum.
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