-
a taxing question? Really!
Hi All:
Up to now, I have only charged for services rendered, and pay tax on my income. I am bidding out a project (my company, and client is in NY) shoot is in NY, North Carolina and CT. My question is about taxes. Does client pay tax on whole budget? Any of the budget? Do I pay taxes on services or crew?
I do have a tax id #.
Thanks for your input.
RoyRoy Schneider
Long Live Da Cow! -
7 Replies
-
You should go on-line and look for each states department of revenue. Some states require sales tax to be paid on labor (which is un-American in my book). Normally, the tax laws apply where the service took place.
Steve Wargo
Tempe, Arizona
It’s a dry heat!Sony HDCAM F-900 & HDW-2000/1 deck
5 Final Cut (not quite PRO) systems
Sony HVR-M25 HDV deck
2-Sony EX-1 HD . -
Hi Roy,
Big area for discussion and interpretation here. This relates to my 3rd rule for running my business: tax everything.
Same-state:
None of my “same state” subcontractors tax me (goods or services) since I’m reselling their goods/services. In Wisconsin, I give them a “WISCONSIN SALES AND USE TAX EXEMPTION CERTIFICATE” (WI S-211 Reseller Form). There is an area on the form that says “PROPOSED EXEMPT USE” and below that “Resale (Enter purchaser’s seller’s permit or use tax certificate number) where I enter my WI Seller’s ID number.”Out-of-state:
Just like you do not charge sales tax for your out-of-state clients, your out-of-state vendors should not charge you sales tax.Final delivery:
If my same-state client is “for profit” I tax EVERTHING – goods and services. You can separate goods from services and charge taxes on just the goods, but the government may interpret what you think is a “service” as a “good” and you may have to pay back taxes if you ever go through an audit.
For example, I may think that when I hire a Videographer, he/she is performing a service (and thus not taxable to my client). But, the government may see it as a “good” since he/she delivered the final results on tape/disc/computer file and that is a good and has a value. The government likes to define a “good” as something that has “value.” Another example is transcription services. Transcribing is a service, but the Microsoft Word file that you get in the end is a thing/good and thus has value.Bruce
Bruce Bennett
Bennett Marketing & Media Production, LLC -
if you sell services, you just mess with taxes quarterly or annually… whenever you decide to anti up to our pimp, uncle sam.
-
[grinner hester] “…whenever you decide to ante up to our pimp, uncle sam.”
Grinner,
I hate to correct a dear friend, but a pimp sells you out to others — say, as your “marketing representative.” In this case I think it more accurate to say “Uncle Sam, our gigolo,” as that is the case when he’s the one who’s climbing into bed with you.
Ron Lindeboom
-
I dunno. I’m 38 and I have never seen uncle sam do work. Always has his hos do it for him then shakes em down for 40 percent.
he’s a pimp. He even has the funky hat. -
[Ron Lindeboom] “”Uncle Sam, our gigolo,” as that is the case when he’s the one who’s climbing into bed with you. “
…and then what?
Steve Wargo
Tempe, Arizona
It’s a dry heat!Sony HDCAM F-900 & HDW-2000/1 deck
5 Final Cut (not quite PRO) systems
Sony HVR-M25 HDV deck
2-Sony EX-1 HD . -
and then just a happy ending for one.
Reply to this Discussion! Login or Sign Up