smallmouthaholic Posted February 9, 2011 Report Share Posted February 9, 2011 I have to say this really bothers me to the point of NOT jumping in to the soup of being a business.. I do wish to make baits of all kinds because I have to do something with my time and always did models (Cars, trucks, Planes, Etc.. If I only make the lures and jigs to use personally but do NOT use some and sell what I don't use I would still have to do the taxing.. I just don't like the idea of doing this HOBBY and then have 6 rooms of items I can't do anything with.. Am I being paranoid ?? If you want to deduct your expenses and declare this a business, you've got to pay your taxes-plain and simple. That's why many wholesalers require I.R.S. form #637 and a state sales tax license number to get the real wholesale prices on components. Quote Link to comment Share on other sites More sharing options...
FuzzyGrub Posted February 9, 2011 Report Share Posted February 9, 2011 The good thing about the tax, (did I just say that) is it is used to promote fishing. Doe anyone know how this is controlled and spent? Is it like NYS licence fees, some of it always makes it back to general fund? Distributed to states? Spent by the discretion of some federally appointed person? or actually managed and doing some real good? Quote Link to comment Share on other sites More sharing options...
dlaery Posted February 9, 2011 Report Share Posted February 9, 2011 No clue. I never trust any money controlled by government to go where its supposed to. You guys realize this was a depression era "temporary" tax right? My understanding is that is that it only goes for promoting fishing. There is a large hatchery located close to me that most of the money to build this came from FET. This hatchery is run by the Missouri Department of Missouri and raises fish for most of the big lakes around in the midwest. This is a quote about the FET from the American Sportfishing Association The Sport Fish Restoration Program was established in 1950 by the Dingell-Johnson Act, using a 10 percent excise tax on certain fishing equipment to fund various projects designed to enhance sportfishing in all 50 states. The Recreational Boating Safety Program was established in 1971 to fund boating safety and education programs, and amended in 1980 to draw its funding from taxes on motorboat fuels. These programs were combined in 1984 under the Wallop-Breaux Act.The Wallop-Breaux amendment expanded the 10 percent excise tax to nearly all sportfishing products and captured over half of the federal motorboat fuel taxes that were paid by boaters and anglers. This combination substantially increased the funds collected by the federal government to be returned to the states for fishing and boating-related projects. In 2005, the opportunity existed to increase the fuel tax funding source as Congress reauthorized the transfer of motorboat and small engine fuel taxes to the SFRBTF. Until then, only 13.5 cents of the 18.3 cents in federal fuel taxes on each gallon of gasoline used by recreational boats and small engines was being transferred from the Highway Transportation Fund to the SFRBTF. The additional 4.8 cent balance was being directed to the General Treasury. However, the 2005 reauthorization authorized the transfer of the entire federal fuel tax to the SFRBTF. Anglers and boaters paying this tax finally received the full benefit of their tax payment investment. Since its creation, the Sport Fish Restoration Act has been refined and expanded by Congress. It is unquestionably the most valuable federal legislation for anglers and fishery resources, delivering millions each year to state fishing and boating programs. This is the most important program for boating and angler access and fishery management in each state. It is also the core funding for each state’s sport fish restoration program. It sounds like it is going for a good cause. Quote Link to comment Share on other sites More sharing options...
JSC Posted February 9, 2011 Report Share Posted February 9, 2011 (edited) This FET is under the Dingle-Johnson Bill ... Suppose to be for the improvement of fishing Some times you might get a report of it being used ...( like all taxes .. who knows and that is an off subject matter .... ) If you are maken them just for your own use ... no tax on end product but you will pay the tax on applicable materials (spinners,, hooks & etc) File that 720 every quarter if you are selling them for what ever your Gross sales might be for that quarter. Sales tax is an entirely different matter and can be from City, County to State ... need to check that out as well ... Just 2 cents worh (with inflation not very much) JSC Sorry missed the above article which is dead on .. Edited February 9, 2011 by JSC Quote Link to comment Share on other sites More sharing options...
redg8r Posted February 9, 2011 Report Share Posted February 9, 2011 I have to say this really bothers me to the point of NOT jumping in to the soup of being a business.. I do wish to make baits of all kinds because I have to do something with my time and always did models (Cars, trucks, Planes, Etc.. If I only make the lures and jigs to use personally but do NOT use some and sell what I don't use I would still have to do the taxing.. I just don't like the idea of doing this HOBBY and then have 6 rooms of items I can't do anything with.. Am I being paranoid ?? If it's solely for a hobby, consider donating them out, many clubs and outdoor organizations appreciate any help they can get. Trading out is always an option too Quote Link to comment Share on other sites More sharing options...
onlyonmonday Posted February 9, 2011 Report Share Posted February 9, 2011 If it's solely for a hobby, consider donating them out, many clubs and outdoor organizations appreciate any help they can get. Trading out is always an option too I have nothing but time between my compression therapy times to get out of bed and do something.. That is when I will P and do some bait work.. I always did models as a kid and was going to do them but now have been bitten by the fishing bug of being a lure lunatic.. To get a discount on orders of materials, and be able to not, NOT get messed with in any way from anyone, even the I.R.S., that is what I seek.. I would like to just try as much as possible to get my health back as much as possible to be able to be a productive member of the tax paying world without having to just get a disability check each month.. If I could sell some of my items or barter to pay for materials then that is a plus to even doing anything about baits.. I will not be out on the flowage often, even if it is 1 city block away.. Quote Link to comment Share on other sites More sharing options...
Maddoglures Posted February 9, 2011 Report Share Posted February 9, 2011 I have nothing but time between my compression therapy times to get out of bed and do something.. That is when I will P and do some bait work.. I always did models as a kid and was going to do them but now have been bitten by the fishing bug of being a lure lunatic.. To get a discount on orders of materials, and be able to not, NOT get messed with in any way from anyone, even the I.R.S., that is what I seek.. I would like to just try as much as possible to get my health back as much as possible to be able to be a productive member of the tax paying world without having to just get a disability check each month.. If I could sell some of my items or barter to pay for materials then that is a plus to even doing anything about baits.. I will not be out on the flowage often, even if it is 1 city block away.. It amazes me that this thread is still going. If anyone wants to start up a business? Should they not check the advice of a CPA and learn their state laws and any Federal laws. We have no problem with paying our business taxes, State and Fed. Excise Now our CPA does all this for us, we just take him the sales for the quarterly Fed. Excise and do the State Sales Tax once a year. There are many home businesses that are working and selling under the radar. If you are one? you are always looking over your shoulder. There is plenty of extra money to be made. You are never going to get rich after all the taxes. Quote Link to comment Share on other sites More sharing options...
hollywood hooksett Posted February 10, 2011 Report Share Posted February 10, 2011 cash is king.........no taxes......no paperwork...no trail.... Quote Link to comment Share on other sites More sharing options...
Vodkaman Posted February 10, 2011 Report Share Posted February 10, 2011 cash is king.........no taxes......no paperwork...no trail.... Don't be so sure, your local tax representative uses internet too you know. Big brother is watching Dave Quote Link to comment Share on other sites More sharing options...
onlyonmonday Posted February 10, 2011 Report Share Posted February 10, 2011 This is silly or stupid.. If I want to sell my items, No matter what they are should be taxed ?? Just as a hobby to make something and to sell it is going to be a crime even if I donate the items ?? What crap am I getting into ?? Being disabled and getting a government check, and if I spend the little time I have when I feel good enought to do something I can make, then I have to worry about ever selling or donating the item ?? Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted February 10, 2011 Report Share Posted February 10, 2011 cash is king.........no taxes......no paperwork...no trail.... That's what they all say-UNTIL they get caught and nailed Penalties and interest from the I.R.S. can exceed the actual amount owed. Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted February 10, 2011 Report Share Posted February 10, 2011 This is silly or stupid.. If I want to sell my items, No matter what they are should be taxed ?? Just as a hobby to make something and to sell it is going to be a crime even if I donate the items ?? What crap am I getting into ?? Being disabled and getting a government check, and if I spend the little time I have when I feel good enought to do something I can make, then I have to worry about ever selling or donating the item ?? You're permitted to make X amount of dollars annually depending upon your specific disability. If you're donating the items then you don't have to pay the tax since there are no sales.(Where's the beef? )That said,enjoy your hobby but declare it as a business so you can deduct all of your your business related expenses against your profits. You may be surprised @ the outcome if you persevere and are successful.Uncle Sam wants his 10% excise tax on gross sales for fishing tackle manufacturers Quote Link to comment Share on other sites More sharing options...
Smallie Posted February 13, 2011 Report Share Posted February 13, 2011 Sorry still confused! Do most of you just add the 10% Excise tax on to your wholesale orders? What about selling retail, should it be added to the customers total or should the manufacturer just swallow the tax fees? Doesn't seem to be much profit left for the working man by the time we pay a 10% excise fee up front and then pay an additional state and federal tax fee at the end of the year that adds up to probably at least 20% if not more. 30% plus in taxes, 33% in materials, along w/ a huge investment in equipment. Cool I think when its all said and done we can make about 3 dollars an hour w/ our operation. Any words of wisdom? LOL Yeah, it gets discouraging. Between excise tax, federal tax, state LLC tax and the 40% dealers want you to take off of your retail price you start feeling like making more than 3 dollars per hour means working part time at Burger King - LOL Quote Link to comment Share on other sites More sharing options...
Smallie Posted February 13, 2011 Report Share Posted February 13, 2011 That's what they all say-UNTIL they get caught and nailed Penalties and interest from the I.R.S. can exceed the actual amount owed. Once you are in the IRS's sights, you may never get out. Like smallmouthaholic has said follow the rules because paying now is cheaper than paying later. Quote Link to comment Share on other sites More sharing options...
hollywood hooksett Posted February 13, 2011 Report Share Posted February 13, 2011 again .no trail..........no proof Quote Link to comment Share on other sites More sharing options...
smallmouthaholic Posted February 13, 2011 Report Share Posted February 13, 2011 again .no trail..........no proof This is very true-UNLESS 1- your sell to a store w/your label on them and the store gets audited. 2- a jealous competitor makes a phone call and the I.R.S. investigates - they have a way of making your life extremely uncomfortable after they knock on your door. There is basically no limit to penalties and interest if they find intent to commit fraud. 3- your suppliers keep sales records and may get audited- especially over excise tax and exemptions and that my friend is a fact.Even though you don't have Form #673 on file w/ your suppliers, you may get investigated for what they consider an abnormal amount of component purchases for a hobby-or if you use a business name to make these purchases to obtain a discount. Quote Link to comment Share on other sites More sharing options...
onlyonmonday Posted February 13, 2011 Report Share Posted February 13, 2011 Dad is watching us right now.. ****************************************************************************** Quote Link to comment Share on other sites More sharing options...
