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Distributor Information?
 

I have bought numerous items from numerous distrubutors, anything I think I can make a profit off of I buy and re-sell. I am just a little confused on one thing, some people I buy from do not have a sales tax id number or a resales license so how do you file for that when tax season rolls around. I found this guy a few weeks ago that sells a particular item on Ebay which he has very high feedback on. He told me what he would sell me the item for if I bought 500+ units and it seems too good to pass up. I want this to be an ongoing thing and he agreed to it but when I asked him for his distributors licesnce, re-sale license, etc. he had none. My main question is do you need these things to put on your taxes? I have never perosoanlly done my own taxes I get them done for me and would hate to be in a hole if I buy the stuff and end up needing the info. Any help would be great, Thanks!:thumb:

If he's not charging you tax, it doesn't matter. You get a sales tax permit from your State and follow the guidelines for your particular State.

When I make purchases from my suppliers they have my resellers permit on file which they in return file with the Franchise Tax Board (California). At the end of the year I pay the taxes on my purchases.

well the guy is selling me a particular supplement called jack3d micro and in my state supplements fall under the food category which is not taxed so do I still need to file it with sales tax?

Hello,
When I meet a guy in a van across the state line, who sells me product,
I do not ask him a sales tax number,
I have him meet me, so I do not have to drive all the way to new York.
When I sell the goods, I keep an accounting of what I bought,versus what I sold,
The difference,is my profit.
I do not collect sales tax on anything I sell.
Because then,I am obligated to forward same to the revenue sales tax dept of my state.
I have business license from my state for each master s corp I own.
I also pay a personal property tax,which is for my copiers,my printers,my pcs, my desks,office furniture,all of which depreciates over time.
I use the LIFO method.
Which is last in, first out approach .
My cost of goods,is actual cash value,not accrual method.
You can have all of your questions answered by an hr block employee in January.
Once you start keeping good records,this will all be second nature to you.
If you keep terrible record, and it costs you say an extra $5-$10k in taxes,you will
Keep much better record the following year,believe me.
Good luck

as long as he gives you a legit receipt and you have record of payment you can write off that expense.

we do all our transaction through payapal, so thats a easy receipt. But somestimes I paid him with my Stealth Paypal accounts so how do show I bought it if the name on the receipt doesn't match mine (since its stealth).

Here is what you do, Go online to any search engine and type in "Free Invoice Template" and start getting creative.

okay I will give that a try, I should only use this for stealth transaction right?