I know many things are taxable but there are a lot of things that are not. Is firewood taxable.
Is firewood taxable?
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Ryan'smilling
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Do you mean sales tax? Like should the seller collect sales tax from the buyer like a store does for clothing or other non-food items? I would think not, but I could be mistaken. I know we pay sales tax on the electricity we use, but our load-controlled furnace is on a separate meter. We don't pay sales tax on that electricity.
This site indicates that firewood purchased as a primary heat source is exempt in Minnesota.
https://www.avalara.com/taxrates/en/blog/2013/08/minnesota-offers-tax-exemptions-for-heating.html
This seems to indicate the same for Wisconsin.
https://www.energy.gov/savings/renewable-energy-sales-tax-exemptions
Of course it may vary from state to state.
Obviously you have to pay income tax on the riches you're raking in from firewood.
Little Al
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A company in France VAT( value added tax) registered must charge the reduced rate on firewood sales currently 10% the Std rate for non listed / non exempt is 20% it's a bit of a night mare some times on used items
No tax here on furnace oil,gas or firewood for home heat , 15% it's for a business.
But only after taking deductions for fuel, oil, depreciation on truck and saw etc etc. and if the wood comes from your own property maybe even treating it as capitol gains rather than income
In Many States (like Texas) firewood for retail sale within the state requires charging sales tax.....if you are selling wholesale and they have their certificate and you keep it on file then no sales tax
Ah but then you operating a business and a whole new set of taxes are added in. Depending on your state/local laws of course. Here, If I was selling firewood as a business,I would have to pay personal property tax on my inventory. This would be a muncipality tax not a state tax.
I knew you have to pay income tax if it's over a certain amount. I just didn't know about sales tax. I know I don't pay sales tax on livestock feed or hay.
I also know different sizes sold are or are not taxable. Like snacks. Single serving bag of potato chips is taxable. But a family size is not taxable. It's hard to remember whats is taxable and whats not.
I also know different sizes sold are or are not taxable. Like snacks. Single serving bag of potato chips is taxable. But a family size is not taxable. It's hard to remember whats is taxable and whats not.
I don't sell that much and going commercial is out of the question. Who in there right mind wants to open that bag of worms.
All assuming y
I don't sell that much and going commercial is out of the question. Who in there right mind wants to open that bag of worms.
So you're not claiming anything for operating expenses?
Sales tax in Ohio? Yes
No, I don't sell that much anymore. I never really sold enough to offset the deductions. I'd rather stay small enough not to have to deal with all that.As long as I make enough to cover my own wood needs and a little beer money and thats enough for me. I'm supposed to be retired, not working my ass off.
Ryan'smilling
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Actually I think you need (according to the IRS) to report the income no matter the amount. Whether or not your gross adjusted income is enough to warrant paying taxes is another question though. But say you make 25 grand a year in other taxable income, even if you only profited $500 from firewood, you'd have to report it and pay tax on that $500 in addition to the rest of your income. If you only make $8000 in other taxable income and profit $500 from firewood then you still have to report it as income, but you probably won't pay any taxes because your total income isn't enough to warrant it.
Tax recreational wood in MN, no tax on primary heat wood.
I call BS on it all. Property tax, fuel tax, road tax tax the saw, tax the gas.......the man sure gets his share.
I call BS on it all. Property tax, fuel tax, road tax tax the saw, tax the gas.......the man sure gets his share.
I think your allowed to make $600.00 without having to claim it on your taxes.
Ryan'smilling
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You'd better double check on that. $600 does happen to be the limit for how much you can make in miscellaneous income without needing to get a 1099 from the source of the income, so some people do assume that you can make say $500 cutting firewood, babysitting, whatever and not have to pay taxes. Actually, you're still supposed to pay taxes on the income (assuming your total income is taxable) you just don't need to get a 1099.
You don't think they'd let you get away with making $599 from 100 different endeavors and not pay taxes do you? They gotta get their cut...
Every State charges sales tax, but at different rates. There may be some exceptions under certain conditions. Some have touched upon some of the conditions that will prevail. I used to pay a timber harvest tax, but it was a small percentage. Federal and State finally stopped bothering me because it clearly was not their best interest to chase may tax rate. That is because what I do is small. For most part for the guy that goes out to a remote area to cut some fallen dead trees and sell five cords a year most likely you will never hear from any body. If you are moving 10 cord a week you will have to pay some thing. If you buy a load of logs and resale them now you are liable for big money because retailers do not get a break. We do not charge for services, but any item that is being resold gets hit for about 8%. Thanks
Wisconsin is easy just think of the old Beatles song Taxman. That about covers it.
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