Buying off CL and the buyer wants cash

[Jstpssng]

Its a total serious question. So, guess I need to investigate this. I've not saw a place on my state tax forms to declare sales tax that I owe.

I believe that Maine just added it to their form within the past few years, as internet sales proliferated. We have the option of keeping track; or paying a percentage of our income. I usually go with the latter, but when I bought my winch I had to declare it.

A quote by Clint Eastwood going to confession in "Grand Torino";

"I sold an outboard motor in 1972. I made $50 and didn't declare it on my taxes."

 

[3Ts]

I don't see that as any proof at all. If it came right down to it, you would be in possession of stolen property one way or another.

I can sell you the Brooklyn Bridge and make up a pretty nice looking invoice on my laser printer. lol

But if I have a signed receipt from you, I can prove that I bought it in good faith and that you sold it to me, claiming that it was legally yours to sell (assuming that I use my normal receipt which has a picture of the item from the ad and which states that it is sold as is, where is and is to be removed immediately).

You would still lose the property since it was stolen, but you would not go to jail since you can prove you did not steal it.

 

[MossRoad]

I don't know how it works in Canada. Here in Indiana, if you sell a car to someone for, say, $1000, you sign the title and put the amount you sold it for. The buyer has to pay any taxes when they register the vehicle in their name. So cash sale or no cash sale doesn't matter to the seller. The buyer always pays the tax.

As for cash sale means no receipt? The only people that I know of that do that are tax cheats, or resellers of stolen goods, ie: criminals. Let's face it.

 

[aczlan]

You would still lose the property since it was stolen, but you would not go to jail since you can prove you did not steal it.

Exactly, I can prove that I bought it and how much I paid for it (or in the case of stuff bought for the farm, we can prove how much we paid for it if we get audited) and if it is stolen and the person I bought it from was the thief, it gives the cops a little help proving their case.

I don't know how it works in Canada. Here in Indiana, if you sell a car to someone for, say, $1000, you sign the title and put the amount you sold it for. The buyer has to pay any taxes when they register the vehicle in their name. So cash sale or no cash sale doesn't matter to the seller. The buyer always pays the tax.

Same here in NY, but the bill of sale is what shows how much you paid for it.

Aaron Z

 

[Industrial Toys]

Like I said, I have bought and sold a lot of stuff privately. It was a rare occassion when a receipt was made out. Sometimes if I buy something, I will sheapishly ask, if I can get a receipt, so I can claim the expense. The answer is usually no. And I accept that as a normal part of these private sales.

 

[2LaneCruzer]

If you're happy, we're happy.

I paid a guy $1400 in cash to take down and remove a tree...and I wasn't about to give him all of that money without a receipt. It went something like this:

Received of........., $1400 in cash for the complete removal of a cottonwood tree, located at the NW corner of the property of....... at (address) completed on (date).

signed......

 

[Industrial Toys]

If the tree was down and the job over, what is the receipt for? Unless you need to claim it somehow, why mess up a guy that might want to operate under the radar? But, that should have been discussed in advance, and that is key.

 

[ovrszd]

If you give it to the guy you are buying from, I bet he pockets it 99% of the time.

Of course he would. That is after he looked at you with the "Are you stupid or something?" look.

 

[MossRoad]

If the tree was down and the job over, what is the receipt for? Unless you need to claim it somehow, why mess up a guy that might want to operate under the radar? But, that should have been discussed in advance, and that is key.

Because every guy that operates under the radar and doesn't pay taxes on required sales/purchases is breaking the law and not paying his fair share for society to operate.

They also tend to be the people that complain about society the most.

 

[2LaneCruzer]

If the tree was down and the job over, what is the receipt for? Unless you need to claim it somehow, why mess up a guy that might want to operate under the radar? But, that should have been discussed in advance, and that is key.

I wanted to eliminate the possibility that he would claim that I didn't pay him; a receipt gives me some protection from a lien or a suit in small claims court. I could just as easily written him a check. I still have the receipt, and the IRS hasn't asked me how much I paid him; so I have no idea what he reported on his income tax, if any thing.