I have to fill out this form for the California State Board of Equalization because I have a resale certificate. Which means I don’t pay sales tax on things I buy that go into the jewelry I make.
I can only deduct this portion from what I actually sell. For example, I buy ten beads at a buck each, that’s ten dollars, add 7.75% tax and it’s $10.78 to me. Not a lot, right? So, I use one bead in a necklace I sell in California for nine dollars. I charge $9.00 plus 7.75% tax, or .70 cents for a total of $9.70. Of this .70, I can deduct the sales tax I originally paid on the one bead. Less than eight cents.
So, I listed out all of the invoices from my store last night. Thirteen. Yeah, thirteen. And the grand total that I sold last year? Wait for it….
Brian just laughed. He said “and how many thousands have you spent on beads?”
Oh, shut up.
Hey, you guys, go buy something!