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Ebay And Taxes

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TheForce's Avatar
United States
4870 Posts
 Posted 12/04/2007  10:49 pm Show Profile   Bookmark this topic Add TheForce to your friends list Get a Link to this Message Number of Subscribers
Should one declare taxes on ebay or other online purchases on their state income tax forms if no tax was charged on your purchase? If so, would you have to do this for item you purchased from another country?
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GO's Avatar
United States
6563 Posts
 Posted 12/04/2007  11:32 pm  Show Profile   Check GO's eBay Listings Bookmark this reply Add GO to your friends list Get a Link to this Reply
It's the same thing as no taxes for online purchases. If you are not buying it from the state you are in there are no taxes.
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rggoodie's Avatar
United States
23540 Posts
 Posted 12/05/2007  12:01 am  Show Profile   Bookmark this reply Add rggoodie to your friends list Get a Link to this Reply
This also applies internationally
If you live in the USA you do not have to pay GST on Australian purchases

but sometimes you have to remind the sellers of this
rggoodie
aka Richard
"catch em doing something right"
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Peter THOMAS's Avatar
Australia
2830 Posts
 Posted 12/05/2007  12:44 am  Show Profile   Bookmark this reply Add Peter THOMAS to your friends list Get a Link to this Reply
G'day, I don't know about the situation outside Oz, but there is a little bit of shonkiness going on here.
Arguably, all Australian coins, and older British coins, are still money, and so their transfer ought not attract GST. Query what happens when one trades foreign coins.
Secondly, if the seller doesn't get to the $50,000 p.a. thresh-hold, she/he doesn't have to collect GST. If he doesn't collect it, he can't charge it. And there are rules about ABNs and Tax Invoices. This puts hobbyists at a big advantage over dealers.
Thirdly, as I understand it, there is no GST on exports, and the GST already paid is refundable.

Against this complicated background, I must say that most ebay transactions, involving Australian sellers, that I have seen are silent on the subject of GST.
I have seen a few items with the cryptic line "the vendor will pay GST, where applicable".
And I have seen very few with words to the effect: "where the item is sold within Australia, the seller will add 10% to the final price, for GST".

Peter in Oz

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TheForce's Avatar
United States
4870 Posts
 Posted 12/05/2007  08:24 am  Show Profile   Bookmark this reply Add TheForce to your friends list Get a Link to this Reply
I may be mistaken but I think in Michigan we're supposed to declare "online" purchases on our taxes. But I could be wrong.
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collect4fun's Avatar
United States
1151 Posts
 Posted 12/05/2007  10:02 am  Show Profile   Bookmark this reply Add collect4fun to your friends list Get a Link to this Reply
If no taxes were charged, then non to declare. In the state of MI, you do not pay taxes on coins.

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TheForce's Avatar
United States
4870 Posts
 Posted 12/05/2007  10:16 am  Show Profile   Bookmark this reply Add TheForce to your friends list Get a Link to this Reply
I do order a lot of items other than coins though from out of state online retailers and canadian retailers as well.
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amac44's Avatar
United States
3242 Posts
 Posted 12/05/2007  10:19 am  Show Profile   Bookmark this reply Add amac44 to your friends list Get a Link to this Reply
I think its by state tax law here in Alabama there's no tax for online stuff. but we still have places he that you can not have beer&wine or any alcohol
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TheForce's Avatar
United States
4870 Posts
 Posted 12/05/2007  10:27 am  Show Profile   Bookmark this reply Add TheForce to your friends list Get a Link to this Reply
Just found this:

Michigan's Use Tax (Remote Sales Tax)

The remote sales tax (use tax) applies to purchases when Michigan sales tax is not charged. Use tax of 6 percent is due on the total price (including shipping and handling charges) of all taxable items brought into Michigan, purchases by mail from out-of-state retailers, and purchases made on the Internet. It applies to purchases made in foreign countries as well as other states. Use tax can be paid on the Michigan Income Tax Return.

Facts on Internet and Mail Order Purchases

Every state with a sales tax has a companion tax for purchases made outside the state. In Michigan, that tax is called the "use tax" but might be more aptly described as a remote sales tax because it is a 6 percent tax owed on sales made remotely (i.e. outside of Michigan.)
The use tax is not a new law; it was enacted in 1937. With the birth and rapid growth of Internet sales, revenue lost from non-reporting of the use tax is becoming substantial.
Remote selling to consumers nationally is estimated at $279 billion in 2001. By 2005, projected remote selling to U.S. consumers will grow to $429 billion, largely due to sales over the Internet.
Currently, Michigan is losing an estimated $210 million in use taxes from remote sales in fiscal year 2001. Remote sales over the Internet will cause this loss to increase dramatically in the years ahead to $349 million in FY 2005.
The estimated loss of $349 million is comprised of $116 million from the School Aid Fund, and $233 million from the General Fund.
Use tax is required by law when a person purchases a good from out of state and the retailer hasn't charged sales tax in their jurisdiction.
Non-compliance has been a problem for years with mail order sales, but the issue of "remote selling" becomes much more serious with the fast growth of Internet sales.
The Internet Tax Freedom Act does not prohibit the sales and use tax on consumer purchases over the Internet by Michigan residents that are taxable under Michigan law. Only new taxes on Internet access are prohibited.

http://www.michigan.gov/treasury/0,...81--,00.html
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jbakic's Avatar
United States
251 Posts
 Posted 12/05/2007  10:36 am  Show Profile   Bookmark this reply Add jbakic to your friends list Get a Link to this Reply
In WI, we are supposed to pay sales tax for internet purchases. There is a line in our 1040 to do so. As for sales tax on coins, I was just charged it the other day at a dealer, so I assume it is collected. WI is a tax "heck" (Subsitute profanity if your choice)

I know Florida does not charge sales tax on coins.
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GO's Avatar
United States
6563 Posts
 Posted 12/05/2007  10:55 am  Show Profile   Check GO's eBay Listings Bookmark this reply Add GO to your friends list Get a Link to this Reply
So if you buy something online from a warehouse that is out of state...you are technically required to claim it as a purchase to pay additional taxes?
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bobby131313's Avatar
United States
24171 Posts
 Posted 12/05/2007  11:04 am  Show Profile   Bookmark this reply Add bobby131313 to your friends list Get a Link to this Reply
We live in Delaware. No sales tax whatsoever.
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GO's Avatar
United States
6563 Posts
 Posted 12/05/2007  11:09 am  Show Profile   Check GO's eBay Listings Bookmark this reply Add GO to your friends list Get a Link to this Reply
True...but there's still one problem with that






You still live in Delaware
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snowman's Avatar
United States
1840 Posts
 Posted 12/05/2007  4:21 pm  Show Profile   Bookmark this reply Add snowman to your friends list Get a Link to this Reply
quote:
We live in Delaware. No sales tax whatsoever.


I live in Massachusetts. I think they just taxed me for typing this reply.
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bonham3's Avatar
United States
346 Posts
 Posted 12/10/2007  12:18 pm  Show Profile   Bookmark this reply Add bonham3 to your friends list Get a Link to this Reply
Yep Snowman, me too.
Hey, Teddy needs new shoes :)
actually there is no "use" tax in mass.
for online purchases (unless in state)
then it's just the usual 60% rate :)
course we all shop in n.h. right ? Yes...


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