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another tax thread. but about guns

Rick1987

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How many people pay sales tax when they purchase a firearm on a FA10?

Couldnt this be a easy way to get people on tax fraud since they have records of fa10 purchases?
 
No, because private sales of privately owned merchandise is never subject to sales tax. The only time that comes into play is when a business becomes a third party seller. If the .gov wanted to, they could in fact put in a tax structure similar to automobiles, where you are assessed sales tax upon filing for registration, but up to this point that provision is not in place.
 
No, because private sales of privately owned merchandise is never subject to sales

So what is the difference with my privately owned car? If I sell it to you, you have to pay sales tax on the value of the car when you register it.

It was my understanding that all transactions within the state are subject to sales tax. Except exempt items. And I didnt see used merchandise as exempt.
 
So what is the difference with my privately owned car? If I sell it to you, you have to pay sales tax on the value of the car when you register it.

It was my understanding that all transactions within the state are subject to sales tax. Except exempt items. And I didnt see used merchandise as exempt.

I believe they would be clasified as Casual and Isolated sales...

Casual and isolated sales:
Infrequent and nonrecurring transactions made by people or businesses not regularly engaged in the business of making such sales are exempt. For example, sales of used appliances by a homeowner or sales at infrequent yard sales are exempt.

Please note:
Generally, casual sales of cars, boats or trailers are taxable, except for certain family transactions. For more detailed information on casual and isolated sales, see DOR
Regulation 830 CMR 64H.6.1
.
from http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/salesuse-tax-guide.html
 
As it's been mentioned above. Individuals don't charge sales tax on personal transactions. When I buy a car from another individual, he or she doesn't charge me sales tax. The RMV charges a tax based on the Bill of Sale.
 
Sales TaxThe Massachusetts sales tax is 6.25 percent of the sales price or rental charge of tangible personal property or certain telecommunications services sold or rented in the Commonwealth. For a detailed definition of “sales price,” please see*M.G.L. Ch. 64H sec. 1

From MA DOR
 
From MA DOR

Don't be so literal when quoting things. http://www.mass.gov/dor/businesses/current-tax-info/guide-to-trustee-taxes/sales-and-use-tax.html

The next sentence from where you quoted that says
The sales tax generally is paid to the vendor as an addition to the purchase price. The buyer pays the sales tax to the vendor at the time of purchase; the vendor then remits the tax to the Commonwealth.

You also pulled this from the 'business' section of the Mass Dept. of Revenue. Are you a registered business collecting sales tax and remitting the tax to the Commonwealth? If not, then you don't charge sales tax.
 
FA10s do not record cost of purchase. Even if they did, I would put in $0 (ie gift), no money exchange, no problem.

How many people pay sales tax when they purchase a firearm on a FA10?

Couldnt this be a easy way to get people on tax fraud since they have records of fa10 purchases?
 
Then casual or infrequent sales.

Most people here should be exempt when buying a car.

I buy more guns than cars. But I have to pay tax on a used car. Doesnt make sence.

Is that one of the reasons we are limited to 4 guns a year? Similar to selling cars, if you sell more you have to get a dealers license?


I just want to make sure this isnt a way we can get screwed. I havent paid tax on them and there is record of it.

- - - Updated - - -

FA10s do not record cost of purchase. Even if they did, I would put in $0 (ie gift), no money exchange, no problem.

If you do that with a car they charge you based on the book value. There is book values for firearms
 
I believe the price I paid for guns in the NES classifieds included tax, and as both a buyer and the seller would have to report the tax, I love the fact that all the transactions I have with NES members has been for $1.00. Sure they may have asked for $950 but after negotiating, we agreed on a sale price of $1.
 
Don't be so literal when quoting things. http://www.mass.gov/dor/businesses/current-tax-info/guide-to-trustee-taxes/sales-and-use-tax.html

The next sentence from where you quoted that says


You also pulled this from the 'business' section of the Mass Dept. of Revenue. Are you a registered business collecting sales tax and remitting the tax to the Commonwealth? If not, then you don't charge sales tax.


http://www.mass.gov/dor/all-taxes/sales-and-use/

I got it from here.
 
I have had cars "gifted" to me with no problem from Maine or Mass DMV. I did not pay tax on it either times.

I had my current car gifted to me from my mother. We had to fill out a form and I believe the person selling it has to be related to you now.

I dont think you could gift me your car anymore.
 
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*facepalm* Why are we worried about getting 'screwed' because we didn't pay tax on something WE DON'T HAVE TO PAY TAX ON.

Ok I believe you, I just dont see the difference between a used car, and a used gun, 2 of my guns cost more than my car. You said you dont have to pay tax on infrequent purchases but I purchase guns much more frequently than a vehicle.

If what you say is true, I just dont see it on the exempt list, guess I have to speak layer to understand it.
 
Rick, from one of your links:

a) The sales or use tax does not apply to casual and isolated sales made by a person, group, or organization not regularly engaged in the business of selling tangible personal property.

You do not have to collect or pay a sales tax on the casual sale of personal property. Period.

You seem to be arguing that you should do so. If you wish to do so, go right ahead. Simply keep track of every personal item you sell during the year, multiply by .0625, and send that to the state when you pay your taxes.

I'm at a loss as to why you're concerned about this.

ETA: As far as cars go, they probably would have been considered as exempt under the casual sale of personal property rule. The reason that we pay sales tax on them is that they were specifically excluded from the exemption. See the following:

(c) Casual and isolated sales by a vendor who is not regularly engaged in the business of making sales at retail; provided, however, that nothing contained in this paragraph shall be construed to exempt any such sale of a motor vehicle or trailer, as defined in section one of chapter ninety, or any such sale of a boat or airplane from the tax imposed under chapter sixty-four I.

Notice the part in bold. Vehicles are specifically named as not part of the exemption. The above quote is from http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64h/Section6
 
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Rick, from one of your links:



You do not have to collect or pay a sales tax on the casual sale of personal property. Period.

You seem to be arguing that you should do so. If you wish to do so, go right ahead. Simply keep track of every personal item you sell during the year, multiply by .0625, and send that to the state when you pay your taxes.

I'm at a loss as to why you're concerned about this.

I was just confuse as to why I had to pay tax on a used car but not a firearm. I just dont understand it. From what you quoted then I should be exempt from sales tax on a used car, me buying a used car is infrequent.

I just wanted to make sure this wasnt something that I overlooked and was technically suppose to pay.

Given the current events and general attitude towards firearms and there owners, if we were actually suppose to pay the tax it is all on file with our fa10's.

Since that is not the case,

Nothing to see here.
 
Not a problem, Rick. See my edit about cars in post #20. Technically, the legislature could remove the sales tax exemption from any item, food, clothing, shelter, you name it. To date, they seem happier to just keep raising the rate on the usual stuff. About the only thing that the sheep in MA rejected was the additional tax on booze. I can kind of understand that. Living in MA does require some type of anesthetic to numb the pain, and liquor is already expensive enough. [smile]
 
How many people pay sales tax when they purchase a firearm on a FA10?

Couldnt this be a easy way to get people on tax fraud since they have records of fa10 purchases?

Too many people would need to go to jail. The strain in the courts, IRS monkeys, prisons and the bad reps of sending some good people to jail are not worth it.
Besides, they always give you the option to pay, and even finance.

Dont be paranoid.
 
Not a problem, Rick. See my edit about cars in post #20. Technically, the legislature could remove the sales tax exemption from any item, food, clothing, shelter, you name it. To date, they seem happier to just keep raising the rate on the usual stuff. About the only thing that the sheep in MA rejected was the additional tax on booze. I can kind of understand that. Living in MA does require some type of anesthetic to numb the pain, and liquor is already expensive enough. [smile]

That answers my question. Thanks
 
I bought a weedwacker off some guy on Craig's list. Should I be paying use tax on it? What is a revenuer is driving by my house and hears it?
 
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