Detailing sales tax

Jab1719 said:
Not to get off topic but they can pay the sales tax to the state themselves. When the vendor charges tax it's sales tax when they don't the customer is required to pay use tax to the state. The catch is the vendor proving the customer paid the tax to the state otherwise the vendor would have to pay as well. Gotta love the gov't(and hope you don't get audited) and another reason to keep your customers happy.
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Yes, you're quite right about that, which makes my earlier post wrong. However, at least in NJ, the dealer would have had to filled out a sales-tax exemption form (ST-4) and supplied it to the OP. Of course the OP has already said that car washing and detailing is exempt from sales tax under KY law.

I may not have had enough coffee this morning, but this just seems to me a way for the dealer to take a discount from their vendors. If I were the OP I would stop by a state gov't office and show them the invoice and ask if they can explain it (at least here in NJ the sales tax people love a reason to audit).
 
@OP:

I suggest that you take this advice:
Vegas Transplant said:
Let it go hand.
Eventually, you're gonna walk away from the dealership anyhow.
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-You're not a legitimate business
-You're trying to get non-reportable income "under the table"
-This dealership is aware of your health-issues and your "method" of wanting to supplement your income
-The dealership doesn't want you working on their premises.
-This 'payment for services' check they cut for you will be accounted for on their books---it will be reported.

Now would be the time to step back and take a good hard look at how this is going to affect your SSDBI status.

Like you stated before...
-Due to the soon arrival of inclimate weather conditions; and the Dealership won't let you detail in-house...

Your outside-detailing-days for the rest of this year are numbered anyway.

Hope your health improves and the Feds don't investigate

Bob
 
Yikes--I must have missed some backstory to this thread...it would read a little differently if what FUNX states is correct.
 
Jab1719 said:
Not any b2b transaction will incur a 1099. corporations do not receive 1099s. Also they can only 1099 you for what they paid not what you billed. But I agree if you didn't charge sales tax I can't see how they deducted this. Seems complete inappropriate to short pay an invoice without an explanation.
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Ooops lol - I was thinking of W-4 s.......... late night mix up :/
 
No big deal. I don't have much experience with detailing but I do taxes for a living so I figure ill help where I can. Just trying to give back a little bit.
 
Vegas Transplant said:
You know DaveT, the only reason I posted on this thread was because of past experience...and I also followed the thread that the author posted before this thread was started.
I do in fact wish my statements to be erroneous, but to reality I must defer.
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I didn't see the first thread...my bad. Being in a very similar situation myself I am certainly sympathetic to the OP's situation.
 
Good luck and best wishes DaveT!

I've made my share of dealership mistakes...they speak with a forked tongue.


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