Tax Law (Questions About Taxes)/sales tax


QUESTION: I'm retired and have a sewing machine in my home.
Once in a while I sew and sell mail straps to rural mail
carriers (USPS) - quite in frequently -  maybe $800  or $900
per year.
    Do you think I should be paying sales tax on this?

Thanks          Dick


The point is hopefully you report the net income (cash received less costs) bbut I'd have to know your state to know if selling postal bags is subject to tax.what state are you in?

Do you make brand new straps or fix existing bags?

Is the us postal your custmer or is the individual carrier?

---------- FOLLOW-UP ----------


  I live in Minnesota.   These are brand new straps and I sell
them to a distributor,  who sells them.  I'm sure he sells them
to individual carriers  (very few go to the Post Office)

Thanks          Dick


the sales are taxable unless you get what is called a resale certificate from the distributor you sell to.  your sales are low enough you dont have to worry a lot... but you should be charging sales tax.  minny has different rates

you can look up your local rate there.

what you need to do is get the distributor to collect the sales tax and then you dont owe any.  but you do need to request a resale certificate from them.

is the form you need - and it should be marked H - items for resale.

happy christmas  

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