I am registered for sales tax in Texas for a small mail order retail business.
Am I obliged to charge and pay sales tax for sales I make which are not part of this business, for example, reselling my own household items on ebay or craigslist?
In theory should every private person making these kind of sales be charging and paying sales tax? I know most people do not.
If you are selling your personal items, Texas proabaly has a casual sale rule regarding sales tax.
However, you better keep your business accounts and your personal accounts separate. If you start comingling funds, if/when you get audited, you will have a lot of explaining to do.
February 26th, 2010 at 6:06 pm
All trade is subject to sales tax. As a small business, you are infinitely more likely to be audited by the IRS.
If I were an auditor, I might be intrigued that you would choose to sell an item "personally" (where you could not deduct any of the expense of doing so) rather than through your business…What is it you are hiding?
References :
February 26th, 2010 at 6:47 pm
If you are selling your personal items, Texas proabaly has a casual sale rule regarding sales tax.
However, you better keep your business accounts and your personal accounts separate. If you start comingling funds, if/when you get audited, you will have a lot of explaining to do.
References :