Sales tax on personal sales at gun shows

[twomillenium]

What firearm are you selling, how much and location.

[JustSomeOldGuy]

Looking at https://www.comptroller.texas.gov/taxes ... permit.php

If Joe Blow decides he has too many Glocks and brings 3 of them to the gunshow to try to sell to a vendor or attendee, he does not appear to me to be 'engaged in business' as defined in the above. Even if he rents a table at the show and puts all the odds and ends he has and doesn't use up for sale, it still doesn't appear to me that he's 'in business'.

Now if he does it EVERY WEEKEND, like some 'garage sales', then it gets to be a gray area.....

I'm also reminded of a conversation a CPA friend of mine had with an IRS rep. back in the '90's. The CPA was also a computer hobbyist and had dedicated gear set up to bring in forum/echo/netmail traffic for FidoNet, WWIVnet, and several others I don't recall the names of. Those local BBS's that connected to his feed paid a monthly fee for the service. I probably covered his telecom costs, but not equipment costs or the amount of time he spent administering it all. I'm not sure if he was trying to deduct the equipment costs as a business expense, or what, but the IRS rep. told him "Mr. Jones, any pursuit at which you lose money for three years straight, is not a business. It's a HOBBY".

Of the few firearms that I've sold over the years, I can count the ones I made a profit on, on one hand with fingers left over....

Nope, not 'engaged in business'...........

[mayor]

So, if I have a business and use proceeds from that business to purchase equipment, write that equipment off in accordance with IRS regulations, and it takes me more than 3 years to turn a profit, it is a hobby? The regulations are IRS regulations, not mine. Seems to me that I can lose money 'til the cows come home, as long as I follow their rules.

[Jusme]

Moderators please move this thread to the appropriate area. This should not be in the Firearms sales thread.

[Zombified]

In Texas there is also a "Use" tax.

Anyone who buys taxable goods and services that are stored, used or consumed in Texas from a seller who does not charge Texas sales tax owes Texas use tax.

https://www.comptroller.texas.gov/taxes ... se-tax.php

So all you tax evaders must start filling your use tax forms. As of today you're 9 days late!

[RossA]

I've never bought or sold a gun at a gun show. I have "traded" a few.

[ScottDLS]

I've never bought or sold a gun at a gun show. I have "traded" a few.

Barter transactions subject to sales tax too...

[mayor]

In Texas there is also a "Use" tax.

Anyone who buys taxable goods and services that are stored, used or consumed in Texas from a seller who does not charge Texas sales tax owes Texas use tax.

https://www.comptroller.texas.gov/taxes ... se-tax.php

So all you tax evaders must start filling your use tax forms. As of today you're 9 days late!

I've read that before. unenforceable laws are unenforceable and that one is stupid, to boot.

[ninjabread]

In Texas there is also a "Use" tax.

Anyone who buys taxable goods and services that are stored, used or consumed in Texas from a seller who does not charge Texas sales tax owes Texas use tax.

https://www.comptroller.texas.gov/taxes ... se-tax.php

So all you tax evaders must start filling your use tax forms. As of today you're 9 days late!

I've read that before. unenforceable laws are unenforceable and that one is stupid, to boot.

Taxes are taxes. Refusing to pay the use tax is like making an oil filter suppressor or putting a pistol upper on an AR rifle lower, without doing the paperwork and paying the tax.

[jerry_r60]

In Texas there is also a "Use" tax.

Anyone who buys taxable goods and services that are stored, used or consumed in Texas from a seller who does not charge Texas sales tax owes Texas use tax.

https://www.comptroller.texas.gov/taxes ... se-tax.php

So all you tax evaders must start filling your use tax forms. As of today you're 9 days late!

I've read that before. unenforceable laws are unenforceable and that one is stupid, to boot.

It is enforceable. Maybe not in the context here but I worked for a company that bout some things from out of state and was not charged tax. While undergoing a sales tax audit we had to pay use tax on those invoices.

[bblhd672]

In Texas there is also a "Use" tax.

Anyone who buys taxable goods and services that are stored, used or consumed in Texas from a seller who does not charge Texas sales tax owes Texas use tax.

https://www.comptroller.texas.gov/taxes ... se-tax.php

So all you tax evaders must start filling your use tax forms. As of today you're 9 days late!

I've read that before. unenforceable laws are unenforceable and that one is stupid, to boot.

It is enforceable. Maybe not in the context here but I worked for a company that bout some things from out of state and was not charged tax. While undergoing a sales tax audit we had to pay use tax on those invoices.

There are approximately 14,971,000 Texans over the age of 18. How many of those you think bought something online last year and didn't pay Texas sales tax on the transaction? It would take a massive amount of manpower to audit every one of those Texans.

[RossA]

If Texas enforced such a use tax, then every used frying pan sold at any garage sale would be subject to such a tax. Good luck with that, tax man.

[jerry_r60]

In Texas there is also a "Use" tax.

Anyone who buys taxable goods and services that are stored, used or consumed in Texas from a seller who does not charge Texas sales tax owes Texas use tax.

https://www.comptroller.texas.gov/taxes ... se-tax.php

So all you tax evaders must start filling your use tax forms. As of today you're 9 days late!

I've read that before. unenforceable laws are unenforceable and that one is stupid, to boot.

It is enforceable. Maybe not in the context here but I worked for a company that bout some things from out of state and was not charged tax. While undergoing a sales tax audit we had to pay use tax on those invoices.

There are approximately 14,971,000 Texans over the age of 18. How many of those you think bought something online last year and didn't pay Texas sales tax on the transaction? It would take a massive amount of manpower to audit every one of those Texans.

That's what I mean by "maybe not in the context here". The tax law itself has been enforced but I've only personally seen it enforced on businesses.

I agree that doing so on individuals is not practical for the state.

[flechero]

"Everybody who came in with more than one gun was asked if they were planning to sell them," ...

R.J. DeSilva with the comptroller's office said individuals or businesses are required to get a sales tax permit if they sell any "tangible personal property" - specifically more than two items a year regardless of value.

No sir, my intent is to use them as trade fodder, if i happen to find that unicorn I've been hunting. OR heck no, this is the only place I can show them off!

Will that be all? Thanks and have a nice day.