Tax question > FFL Discussions

Posted: 12/28/2013 6:15:30 PM EDT

Since FFL transfers are not Taxed, does that mean that they cost of the transfer is exempt from IRS income?

Posted: 12/28/2013 6:21:04 PM EDT

[#1]

no It's income

Posted: 12/28/2013 6:33:03 PM EDT

[#2]

Not sure if serious.

Posted: 12/28/2013 6:33:19 PM EDT

[#3]

Quoted:
Since FFL transfers are not Taxed, does that mean that they cost of the transfer is exempt from IRS income?

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In Texas, firearm transfers are exempt from Texas sales tax.............which I'm pretty sure is not the same thing as Federal income tax.

Posted: 12/29/2013 8:18:51 AM EDT

[#4]

Quoted:
Since FFL transfers are not Taxed, does that mean that they cost of the transfer is exempt from IRS income?

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Most states only tax the sales of goods, not services, which is why the "services" portion of a bill does not accrue sales tax - things like the plumber's labor fixing your pipes, or lawyer's fees, or the service of performing an FFL transfer.

The funds so collected are part of the FFL's business income, however, and get reported and taxed like any other income.

Posted: 12/29/2013 8:38:13 PM EDT

[#5]

WV taxes services/labor at the standard sales tax rate of 6%. I roll it into the fee.

As an example, if I were to charge $25 for a transfer, it's really $23.58 + 1.42 sales tax.

Posted: 12/30/2013 6:59:07 PM EDT

[#6]

In MO no sales tax collected on a transfer but it has to be included as income. When filing your sales tax transfers are listed on line 2 as a minus adjustment. You subtract those and any other non taxable sales from your gross sales and that gives you your taxable sales.

Posted: 1/3/2014 1:52:40 PM EDT

[#7]

Any way to know for sure? The IRS brought down Capone... :D

Posted: 1/3/2014 1:59:16 PM EDT

[#8]

Quote History

Quoted:
Any way to know for sure? The IRS brought down Capone... :D

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Seriously............have you ever done a 1040?

Posted: 1/3/2014 2:08:58 PM EDT

[#9]

Quote History

Quoted:
Any way to know for sure? The IRS brought down Capone... :D

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Yes, note on your 1040 you excluded $XX,YYY dollars in income from your 1040 because it was not subject to Texas Sales Tax. You will soon know for sure.

Posted: 1/6/2014 11:51:12 AM EDT

[#10]

I have. But just because I've done one doesn't mean I'm doing it right.

Funny thing about the IRS is if you send the EXTRA money they never complain. ;)

Thanks again everyone.

Posted: 3/15/2014 7:42:54 PM EDT

[#11]

If you charge a fee for doing the transfer, that is income to you. Falls within IRC Section 61.

I didn't sleep at holiday inn last night, but I am a CPA.

Posted: 3/17/2014 1:08:54 PM EDT

[#12]

Three words OP:

Certified Public Accountant

As in, if you want to stay off the IRS' shit list, hire one to help you with your taxes.

Posted: 3/17/2014 4:49:33 PM EDT

[#13]

Quote History

Quoted:
Three words OP:

Certified Public Accountant

As in, if you want to stay off the IRS' shit list, hire one to help you with your taxes.

View Quote

Hey, as a CPA, thanks for highlighting the value of a CPA. We really do help people.

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