I know many things are taxable but there are a lot of things that are not. Is firewood taxable.
I know many things are taxable but there are a lot of things that are not. Is firewood taxable.
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 incomeIf you’re talking sales tax it depends on your state. If you’re talking income tax owed by the seller the answer is yes.
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.
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
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
So you're not claiming anything for operating expenses?
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.
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.
I think your allowed to make $600.00 without having to claim it on your taxes.
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