Help! Does Anyone Know How To Answer This???

Business By mom42ws Updated 25 Oct 2007 , 9:30pm by Alligande

 mom42ws  Cake Central Cake Decorator Profile
mom42ws Posted 25 Oct 2007 , 6:32pm
post #1 of 9

I hope you guys don't think I'm dumb but I'm in the process of filing for bus. license and such and am trying to get through some of these tax items. I don't know how I should answer.

As an in-state dealer, will your business be engaged in the retail sale, lease or rental of tangible goods, personal property and/or taxable services to consumers for purposes other than resale?
Yes No

8 replies
 mom42ws  Cake Central Cake Decorator Profile
mom42ws Posted 25 Oct 2007 , 7:06pm
post #2 of 9

No one knows?

 WendyB  Cake Central Cake Decorator Profile
WendyB Posted 25 Oct 2007 , 7:12pm
post #3 of 9

If you are selling retail to customers the answer would be YES.

If you are selling wholesale the answer would be NO.

They are probably deciding if you should be collecting sales tax.

 JoAnnB  Cake Central Cake Decorator Profile
JoAnnB Posted 25 Oct 2007 , 7:12pm
post #4 of 9

Food is not a tangible good.

I don't think they consider decorated cakes a service, so most likely the answer would be no. the best answer should come for the tax officers.

 mom42ws  Cake Central Cake Decorator Profile
mom42ws Posted 25 Oct 2007 , 7:18pm
post #5 of 9

hmm. thanks for taking the time to respond!

 cakenutz  Cake Central Cake Decorator Profile
cakenutz Posted 25 Oct 2007 , 7:23pm
post #6 of 9

Answer---- No and you are not dumb icon_wink.gif

 tdybear1978  Cake Central Cake Decorator Profile
tdybear1978 Posted 25 Oct 2007 , 7:15pm
post #7 of 9

my tax person said that the answer is yes

 adknight  Cake Central Cake Decorator Profile
adknight Posted 25 Oct 2007 , 7:24pm
post #8 of 9

IMO, a tangible good is something that can be physically touched (in this case, cake), and unless you are selling them wholesale, this makes them a retail tangible good for consumers. The answer would be yes.

I know this just makes it even more confusing, but I hope it helps! Again, just my opinion!
~adknight

 Alligande  Cake Central Cake Decorator Profile
Alligande Posted 25 Oct 2007 , 9:30pm
post #9 of 9

I would say yes, but to be sure call your State tax dept and ask them about cakes, in my state they are taxable in others I know they are not.

Quote by @%username% on %date%

%body%