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Author Topic: Evil Tax Permit Info For THE FUTURE. (READ FIRST POST)  (Read 2942 times)
Hastur
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Re: Evil tax permit panic
« Reply #15 on: January 30, 2007, 02:28:37 PM »

Quote from: Verastegui on January 28, 2007, 02:53:37 PM
Ok, I have a Tax Permit and last year I made $25 in sales.  I reported it and payed my taxes.  I'm declared as a dependant under my dad.  Do I have to report my sales income on the federal income tax report?

You do not have to report the income unless you make more than $600/year.  Under that and the IRS considers it just a hobby and not regular income.
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Hastur
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Re: The evil tax question in as best a nutshell as I can
« Reply #16 on: January 30, 2007, 02:40:03 PM »

Quote from: Ed Z on January 30, 2007, 10:37:03 AM

What I do not know yet is how often you send it in. I believe sales tax is submitted quarterly (four times a year)
 

If you take in less that $1500 in sales tax, in the course of a year, you willl need to file once per year. If you take in more than $1500 in sales tax in the course of a year, it will need to be filed quarterly. 
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Steven Heinrich
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Steven on taxes
« Reply #17 on: February 24, 2007, 08:48:45 AM »

not sure I understand the question.

If you are asking should you get a tax id (even temp) for all the cons you go to...the answer is yes...

It is only a matter of time before the govt. starts arter the convention artsits....with anime becoming such a big industry now, and some of the artists clearing six digits each year (and not reporting any of it) the tax people are becoming increasingly attentive to us...

The professionals do it because this is a Business...even the amateurs should treat it as such..

Anyone that tells you that you can get away without it, either is full of themselves (and will eventually get audited) or simply arrogant, and not someone you should be asking business advice from.

There are many professionals on this forum that I go to for help...I'm good a certain things, but I am also very high strung and emotional and hardly perfect...if it wasn't for people such as Ed, Hastur, Nicole, Juno, Spizzy, Amelie, Fev, Lori and many others that take the brunt of the technical questions on this board, I would be wrapped in a straight jacket right now...

This is why I had the forums built in the first place, but everyone on it has made it what it is....a wonderful, safe place for learning.

The successful artists are the ones to ask for help, not the ones with the "illusion" of success...
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Re: Evil tax permit panic
« Reply #18 on: February 27, 2007, 12:08:01 PM »

Quote from: fev! on February 24, 2007, 09:49:13 AM
i can't imagine having to write hundreds of receipts withe all the individual sales of small items.. >.

I am in the same boat. Between A-Kon and Animefest, I sold over 1,000 1" buttons. No WAY can I handle a gaggle of pre-teens waving dollars at me like I'm some yaoi show, collecting the money, bagging the buttons, giving them out, AND writing a receipt for each sale. What I try to do is to keep a tally of how many sold for personal reference, but overall smaller items like that in the fast-paced AA are just impossible to give receipts for. My head would have exploded.

The most expensive items at my table are generally $10. For people like Hastur who sells expensive/pretty things, receipts are much more important. For tables full of fast-moving $1 items, not so much, at least to me.
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Re: Evil tax permit panic - MY 2 cents
« Reply #19 on: February 28, 2007, 03:26:22 PM »

For those who want to know, when I started my business I called the Comptroller and got ALL the details on what is and what is not taxable where it concerns art:

1)  Any drawing, painting, or digital file that you hand over/email to a client or customer is taxable.  That means any commisions that you do no matter how much it cost you must charge tax.

2)  Any consulting you do, such as discussion about an art project where no product is exchanged but youa re charging for your time and knowledge, is NON-TAXBLE.

So I would recomend that you charge or add the price of tax to any and all art that you sell at the convention.  because I can tell you from experience it is a complete nightmare to go BACK and figure out what tax would have been at "x" amount.

If you have any specific questions, feel free to PM me Smiley

Added by The Spizz: If there are questions, ask them here so everyone can see!
« Last Edit: February 28, 2007, 03:41:44 PM by Spizzy » Logged
fev!
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Re: Evil Tax Permit Info For A-Kon
« Reply #20 on: March 07, 2007, 07:21:40 PM »

Howdy folks!.. I don;t know if any of y'all have tried it, but you can apply for a sales permit online

http://www.window.state.tx.us/taxpermit/

i tried to before, but i wasn't able to because i couldn't apply online before 90 days before the first date i'd be sellin..

but i can now :3

Its quickndirty yo

Be sure that when you put down business location you put down the hotels street addy
400 Olive St.
Dallas TX 75201-4005

teh business contact number you can also use the same regular number, since you don't want them calling say , the hotel or something..

whatelsewhatelse..
OH!. spizzy (and most of the rest of us)!. you'd prollly wanna use NAICS number 711510 - Independent artists, writers. and Performers

um.. yeah.. this is nice and nobrainer in comparison to that bigol' PDF 4 pager lol.. jsut be sure to print the summary, and the signature form (which you'll have to mail in!)

 Smiley
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pinkfairywand
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Re: Evil Tax Permit Info For A-Kon
« Reply #21 on: March 08, 2007, 10:49:12 AM »

Quote from: fev! on March 07, 2007, 07:21:40 PM
jsut be sure to print the summary, and the signature form (which you'll have to mail in!)

You can also FAX the form in if you're really, really lazy. Like me. :3 I got mine in the mail yesterday.

But since I do business outside of A-Kon, my business location is my apartment. A-Kon just kicked me in the ass to get this taken care of is all.
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pinkfairywand hooray
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Re: Evil Tax Permit Info For A-Kon
« Reply #22 on: March 08, 2007, 11:36:49 AM »

ah, i'm from out of state, and it required the instate location of where i'll be setting up for the event lol.

but yeah, if you have an ongoing instate business it might be different Smiley..

tis nice that we can file our taxes online as well Smiley
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Hastur
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Re: Evil Tax Permit Info For A-Kon
« Reply #23 on: March 28, 2007, 07:25:44 PM »

The governent is not selling your information.

There is a place where your information is made public, and the spammers and annoying ones all know how to search for that information. It is part of the standard way of making all DBAs public, so that the tax man can trace you down if needed. 

The good news is that it will die down in about 2 weeks. 

Every idiot out there wants his/her chance to have you pay them $20 per month for fark all. And, unfortunately, small businesses are the best if they can get them signed on because the small ones are the ones that pay the monthly fee, but often don't make sales in that month.  Basically, for the idiots, it's free money.

In the meanwhile, you will get the calls.  Sorry guys.

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Hastur
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Re: Evil Tax Permit Info For A-Kon
« Reply #24 on: April 05, 2007, 05:00:20 PM »

Umbrella: When you have multple people under one name.  For example, if I had a couple artists that I sold their stuff for, and it was all under the Pan-Gaia name, then Pan-Gaia would be the umbrella. 

Umbrellas are useful, if you need to have someone to carry your stuff but they can be a pain if you are not careful.  Always remember to file your income taxes properly.

An example of how they work:

Pan-Gaia specializes in clothing stuff.  I get a woman that makes some killer slave bracelets, and we work out that I will take 40% for my cut.  She sends $2000 worth of jewelry with me and it all sells.  I collect $165 in sales tax for the sales and report it as sales, and then I also take $800 in my share, which I report as income.  She has to report the other $1200 as income for her, but since she used my umbrella, she does not report the sales tax collected, because she did not collect it.  However, she may have to report it as non-taxable sales when she reports them.

Clear as mud? Good!

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Re: Evil Tax Permit Info For A-Kon
« Reply #25 on: April 05, 2007, 10:54:41 PM »

Once again, I STRESS tell your friends about this issue!!!

Many people are just lurking on the forums or not paying any attention to this issue.
  I just received TWO more emails today...

"Are we supposed to have this number before A-kon?"

YES YES YES

I know that there are tons of people calling me a ton of names due to this issue (among others)...I am NOT going to feel bad about removing tables on the MAY 1st deadline...

I have given warning after warning, links, a forum, veterans artists to talk with...all that is left is for ME to go get it FOR YOU!

This is NOT me, it is a LEGAL issue...no matter how much people want to twist it...

Some of the people asking about tax information, have been in "business" for years, I know some artists that have walked away from conventions with 6 to 7 thousand dollars, and not reported one cent...which is the primary reason why this is becoming an issue, the government has started to realize this is an unmonitored resource, and that ALOT of money is being made and not being reported....not good. 

Of course, we all know how forgiving the IRS is on unreported income...



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Lazy_Dragon
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Re: Evil Tax Permit Info For A-Kon
« Reply #26 on: April 06, 2007, 07:18:42 PM »

Welcome to becoming a dealer, you need the sales tax number to pay the state of Texas 8.25% of total gross sales.  If the tax auditor comes to Akon, they are required to give the names of all vendors, whether artist or dealer. 

Having this number and keeping track of your sales will keep you from getting a nice letter from the comptrollers offices estimating what you made and what you owe.

We have heard of other states doing this and sending a bill for quite a bit, last one we hard was they estimated 10,000 in sales and the guy only sold 2,000.

The benefits of this tax id number, allows you to open wholesale accounts with suppliers.

If you go to your local court house, you can have your number quickly.  Make copies, keep them in your cash box and send them to Steven.
This isnt the same as filing your Fed tax returns. 
With our show, all must have the sales tax ids that are selling anything.  We are required to give a list of vendors to the city of McKinney for sales tax collection.
Other shows we have been at, actually had a tax collector come around on Sunday for their cut.
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Lazy_Dragon
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Re: Evil Tax Permit Info For A-Kon
« Reply #27 on: April 06, 2007, 07:42:41 PM »

http://www.window.state.tx.us/taxinfo/sales/index.html

Here is some info, but could always call them to see if you can get it quicker.
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Re: Evil Tax Permit Info For A-Kon
« Reply #28 on: April 07, 2007, 12:08:40 AM »

Quote from: Spizzy on April 06, 2007, 09:46:20 PM
Quote from: etherealist on April 06, 2007, 06:37:11 PM


Why are people still posting to this thread!?!?

Because people still need help D:

Oh sorry, I forgot to put on my good social graces hat today.  Dude, all possible permutations of answers to all possible permutations of questions on this subject and many related and tangental subjects were given by like page 4 of this thread.  Do people just skip to the last page to start reading?  I don't know - I'm just baffled...

I mean, I poured blood sweat and tears into making this easy for people because I had questions about it last year...  GAWH!!!  Ohhhh the horror!!!

THE HORROR!!!!!!!!!!!!!   Shocked
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Hastur
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Re: Evil Tax Permit Info For A-Kon (READ FIRST POST)
« Reply #29 on: April 11, 2007, 05:58:14 AM »

http://dmizer.dnsdojo.net/files/TXSalesTax.pdf

I put together a quick and dirty tax sheet for anyone that wants it.

Page one is the price, tax, and final price, for those who use this.

Page two is your sales price, how much the included tax would be, and your take home.

Hopefully this will be useful to you guys. 

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"You need only two tools. WD-40 and duct tape. If it doesn't move and it should, use WD-40. If it moves and shouldn't, use the tape."
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