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| *Ostroff, Fair and Company>>>Other Taxes |
What are the tax implications in this business model? |
If I manufacture keychains on a website for $1 that allows individuals to personalize them, mark them up and sell them for $2 on my website and at the end of the month I pay them $1 for each keychain sold, what are my tax implications? If an individual sells 700 keychains and I pay them $700, what do I have to report and how. In your example, you would have $1,400 of gross income, but you would have a $700 deduction to take against it - either as costs of goods sold or as a sales commission. Either way, you end up with $700 income. This would get reported on Schedule C. If the result is over $400, then you may also have to pay self-employment tax on Schedule SE. Lastly, check your state sales tax laws. For sales to any customers that reside in the same state as you, you would need to charge them sales tax if the volume of sales rise above the level of "casual sales." thanks for the 2 points ***** shove ur money up ur **** u ***** *...* |
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