Do I need to pay sales tax in this situation?

[NebraskaSky]

I have an opportunity to sell photos out of a car museum. The owner makes it sounds like my photos can be there as an exhibit, and if people decide they want to buy, they can write a check directly to me (and the museum would not charge commission.) Do need to charge sales tax?

Since I don't have a business license can I just charge them a flat fee and then list it on my income tax as "extra earned income." I guess I am trying to figure out if it is legal for me to just charge $300 a print at a flat rate. I report all my earned income at income tax time because I have a very sensitive conscience. My dad seems to think it is not a big thing...that since I am not really a "business" that I can just report my earned income and not charge sales tax. I don't know whether to believe that or not. I feel like such a newbie when it comes to this type of thing. If you have a head for business, I would appreciate any words of wisdom.

Andrea Kelley
[email protected]
Home of Nebraska Landscapes and Vintage Car Art by NebraskaSky

 

[Josh66]

Pretty sure you need a tax ID number or something to collect sales tax.

I would just claim it as extra income at the end of the year... I doubt most even do that.

 

[pisicel]

I believe you can't just be there and cashing without talking with someone from taxes first.
What will you do? Cash and if nobody knows, keep all the money?
This is what you'll tell the tax officers if they get you on the sale?

 

[Josh66]

I don't know about Nebraska, but in Texas - you can't collect any tax without a Sales and Use Tax Permit. I don't think you can get that without having a registered business. I suspect that it will mostly be the same in other States...

Since you are not a registered business, I don't see how you could collect taxes, even if you wanted to.

 

[DiskoJoe]

I have an opportunity to sell photos out of a car museum. The owner makes it sounds like my photos can be there as an exhibit, and if people decide they want to buy, they can write a check directly to me (and the museum would not charge commission.) Do need to charge sales tax?

Since I don't have a business license can I just charge them a flat fee and then list it on my income tax as "extra earned income." I guess I am trying to figure out if it is legal for me to just charge $300 a print at a flat rate. I report all my earned income at income tax time because I have a very sensitive conscience. My dad seems to think it is not a big thing...that since I am not really a "business" that I can just report my earned income and not charge sales tax. I don't know whether to believe that or not. I feel like such a newbie when it comes to this type of thing. If you have a head for business, I would appreciate any words of wisdom.

Andrea Kelley
[email protected]
Home of Nebraska Landscapes and Vintage Car Art by NebraskaSky

If you can charge $300 a print then why do you not have a business set up should be what you are asking yourself.

Also who would you send said taxes to if you do not have a business set up?

Also have you sold any of these posters for $199?

 

[jamesbjenkins]

^^^

If you're able to sell a print for $300, you're giving the market what it wants. Why not be in business if you're having success?

I'd kill to have people buying my prints for $300...

 

[DiskoJoe]

^^^

If you're able to sell a print for $300, you're giving the market what it wants. Why not be in business if you're having success?

I'd kill to have people buying my prints for $300...

IKR! Id kill to have someone pay me for something besides just services like shooting weddings. I like wedding but hate doing all the editing afterwards for a product no one else will ever want.

 

[raider]

then i'm not a business either. there, i no longer have to pay taxes.

 

[KmH]

Visit - Nebraska Department of Revenue

Nebraska Sales and Use Tax

 

[Tony S]

Specifically listed for photographers in Nebraska........

Every person engaged in the business of selling photographs, proofs, audio-visual works, or other property to customers in Nebraska is a retailer. Photographers and photofinishers must obtain a Nebraska Sales Tax Permit for each place of business within the state. Sales tax must be collected and remitted on all sales, including charges for film developing, unless the customer provides a properly completed Nebraska Resale or Exempt Sale Certificate, Form 13.

http://www.revenue.ne.gov/info/6-298.pdf

Since you will be a vendor inside a business that most likely is licensed you better make fure you are legit, when the tax man runs an audit on them they will be looking at everything that goes on in the business, including what you do. Unless dad is an CPA or lawyer and is willing to put his license on the line I think he's giving you bad advice.