Wasted Money or How to Save Money

[4570Man]

There's some logic for you! Is that a government law?

Heck, I know some places if you pay cash, it's tax free too! (Shhhh. :shhh
And in NY, that's a LOT bigger savings than the 2% CC rebate.

(^ Again, another example of individual financial gain at the collective expense of others! )

I don’t know what you’re talking about. I wouldn’t want to get locked up for tax fraud. That puts your cash discount closer to 15 percent. I don’t know that the higher credit card price being illegal is fact, but I’ve heard that. I’ve never seen a higher credit card price advertised, but I’ve seen a lower cash price advertised. Plenty of gas stations do it. At least 2 local stations advertise a lower cash price and a 3rd offers a fixed 7 cents a gallon off with cash.

 

[plowhog]

I bought my trailer and tractor out of state to save sales tax. It was a $800 savings on the trailer and a $1600 savings in the tractor.

My understanding is that you committed tax fraud. I'm not judging or criticizing-- as many people do this.

In my area, if a retailer/dealer sells to a customer in their state, by statute they must collect tax and then turn it over to the tax authority. It's called sales tax. If a sale is made to someone out of state, the burden regarding taxation is still in place, but it shifts to the buyer instead of the dealer. This is called use tax. In this case, by statute, the buyer is required to report the sale and pay the tax to the tax authority.

 

[4570Man]

My understanding is that you committed tax fraud. I'm not judging or criticizing-- as many people do this.

In my area, if a retailer/dealer sells to a customer in their state, by statute they must collect tax and then turn it over to the tax authority. It's called sales tax. If a sale is made to someone out of state, the burden regarding taxation is still in place, but it shifts to the buyer instead of the dealer. This is called use tax. In this case, by statute, the buyer is required to report the sale and pay the tax to the tax authority.

I haven’t heard about that law if it exists. Online retailers don’t collect sales tax unless they have a location in your state. I don’t think someone who negotiates a lower price committed tax fraud. I think technically the seller committed tax fraud.

 

[plowhog]

I will admit I don't know laws and regulations out of my area. But here is what I found on Google, at the taxing authority web site, regarding use tax in Tennessee:

"Use Tax is the counterpart to the sales tax. All Tennessee residents, as well as businesses operating in the state, must pay use tax when goods are purchased from outside the state of Tennessee and brought or shipped into the state and the seller did not collect sales tax on the purchase. Purchases made from outside the state include, but are not limited to, mail-order catalog purchases, purchases made online, over-the-phone purchases, and purchases made from a store located in another state. "

Consumer Use Tax

 

[two_bit_score]

Some items were being paid on a card that gave back 1% in a yearly check. Some items were on cards not giving back one single thing. Everything possible has now been shifted to a card that puts 2% of every purchase back into my IRA.

RSKY

So what card is it that pays you 2% and puts the money in an IRA?



Thanks,
TBS

 

[RSKY]

So what card is it that pays you 2% and puts the money in an IRA?



Thanks,
TBS

Fidelity, don't know if you must have an account with them or not. I did have it put into different mutual funds depending on which one is doing well. That was a heck of a lot of trouble each month so now it just goes in one that has done the best over the years.

What I am trying to figure out is how to pay off one 2% cash back card with another 2% cash back card. Then I could use one to pay off the other each month going back and forth and pretty soon the amount owed, if I made no more purchases, would be down to zero.

I actually told this plan to some gal that I was talking to when I changed the due date on a card several years ago. She thought it was very funny and said she would give me her name and personal phone number and for me to call her if I ever figured it out.

RSKY

 

[LD1]

I will admit I don't know laws and regulations out of my area. But here is what I found on Google, at the taxing authority web site, regarding use tax in Tennessee:

"Use Tax is the counterpart to the sales tax. All Tennessee residents, as well as businesses operating in the state, must pay use tax when goods are purchased from outside the state of Tennessee and brought or shipped into the state and the seller did not collect sales tax on the purchase. Purchases made from outside the state include, but are not limited to, mail-order catalog purchases, purchases made online, over-the-phone purchases, and purchases made from a store located in another state. "

Consumer Use Tax

I dont think they will ever be able to enforce that at the private/individual level.

The ONLY way I see them every collecting a use-tax for items shipped out of state is at the seller level. Which means the seller must identify what state they are from.....and the seller would collect the use tax to then be forwarded onto the state that the buyer is from.

But millions and millions of online purchases and transactions a day.....most from people shopping out of state....I know of no-one that keeps track of all of that and pays a use tax to their home state.

 

[Turbys_1700]

LD 1 is correct. The only thing I have purchased out of state is a used core aerator. Technically I am supposed to pay a use tax on that even though it is a used item. I am sure that it was taxed at the time of sale. Don't know if it was originally purchased in NC or VA. In my book that is called double taxation. Just like flea market items. Sellers are supposed to collect tax on them. Some do, some don't. States are trying to recoup lost sales tax due to internet sales. They are going after the larger retailers like Amazon and the such. I understand the law and understand the issue. I personally have a problem with double, triple, and quadruple taxation. Don't we all?

 

[square1]

I don’t know what you’re talking about. I wouldn’t want to get locked up for tax fraud. That puts your cash discount closer to 15 percent. I don’t know that the higher credit card price being illegal is fact, but I’ve heard that. I’ve never seen a higher credit card price advertised, but I’ve seen a lower cash price advertised. Plenty of gas stations do it. At least 2 local stations advertise a lower cash price and a 3rd offers a fixed 7 cents a gallon off with cash.

I was going to mention the discount for buying gas with cash, very common here. Fuel is my 2nd largest annual expense and always done with cash. Groceries are 1st. Those are purchased with a 2% cash back credit card since it's not difficult to plan a grocery purchase to not spend more than budgeted. Everything else is cash / check / debit. If the money isn't there, and often even if it is, the purchase doesn't get made. Needs vs. Wants evaluation is key to saving.

 

[fried1765]

LD 1 is correct. The only thing I have purchased out of state is a used core aerator. Technically I am supposed to pay a use tax on that even though it is a used item. I am sure that it was taxed at the time of sale. Don't know if it was originally purchased in NC or VA. In my book that is called double taxation. Just like flea market items. Sellers are supposed to collect tax on them. Some do, some don't. States are trying to recoup lost sales tax due to internet sales. They are going after the larger retailers like Amazon and the such. I understand the law and understand the issue. I personally have a problem with double, triple, and quadruple taxation. Don't we all?

I purposely seek out of state sellers to avoid sales tax (must be free shipping too), saves me 7% on purchases.
Tractors can probably be bought out of state, and thus tax free (VT. tries to monitor tax free tractor sales from NH.)
Trailers... I don't see how.
Sure ... you can buy a trailer out of state, and pay no tax through the seller, but your state RMV likely will collect their version of what the tax should be, when you register that trailer for on road use.