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Video instructions and help with filling out and completing Why Form 4797 Certificates

Instructions and Help about Why Form 4797 Certificates

Hey guys it's Casey with small business millions today is December 28th 2022 we're almost done with the year so I want to get a couple videos for you guys up before 2022 and I promise you guys in 2022 I'm going to get all the videos screenshots and samples and highlights up on all the social media Facebook Twitter and Instagram has a little bit of a slacker on that last year but you guys still followed us and still checked everything out so I really appreciate that and everything will be down in the bottom of the box all the links to all the social media and the website and if you guys have any questions or comments or anything for us it'll be down there in my email as well and you can email me directly message comment whatever you need to do so let's jump into today's video today's video is about annual resale tax certificates I'm going to cover two things I'm going to cover one how you get a recent tax certificate and how you use it to buy all of your merchandise tax-free and I'm in a second cover how to properly pay your sales in state sales taxes so you don't get in trouble so what is a resale tax certificate that's a great question so basically a resale tax certificate allows you as a reseller to buy a piece of merchandise from another reseller tax-free so you know how when you walk into Best Buy and you buy an iPad for $300 they charge you tax you're going to pay $320 for the item well what's great is with this tax certificate if you go into a place of business and you present this a copy of your sales tax certificate you sign it you date it and you give it to them you get to buy that item for $300 you don't have to pay the tax sales tax is only meant for customers that are buying an item to use it so if you're gonna buy that iPad to personally take home and use a play and watch netflix on no-can-do don't sales tax certificate you will get in trouble only use it if you're going to resale the item which should be most of the stuff you're buying I use it every time I go into pawn shops they put me on file I give them a copy of it I buy my merchandise it's tax free every time now what's great about that is is you go down to the sales tax certificate you present it with your business and your tax ID and they give you this it costs $5 here in Florida I'm sure it's different every state so it's 5 bucks for the year and you basically just make a bunch of copies of this when you get home take it out with you and if you can see here I've just used a sample of Google this is a 2022 annual resale for some company named friends of greyhounds it'll have your business name it'll have your address it will have your sales tax certificate number so when you bring this into a business and you present it they can check all that out check your ID make sure it all matches up you will sign it date it and put the name of the place that you're at with your signature and date and they'll give it to you tax free that's pretty much how it works get to buy all your stuff tax free it adds up trust me guys here in Florida it's seven percent where I am every hundred dollars I spend I save seven dollars so every thousand dollars I spend I save seventy bucks I spent tens of thousands of dollars a month which means I'm saving you know seven hundred eight hundred nine hundred thousand dollars a month in sales tax it's awesome now what's the downside to sales tax well the downside means as soon as you go and file to get this certificate the state is going to send you a sales tax collection packet and basically what that is is every time you sell an item in your state to a customer in your state you have to collect sales tax and you have to pay the state that sales tax so if you sell on eBay or Amazon you ship it to another state it doesn't matter but if it ships to Florida or to whatever state you are in you are responsible for paying the state the percent of sales tax that matches in my state again it's 7% so somebody logs in for Miami they buy a hundred-dollar iPad from me I owe the state seven dollars out of that sale now eBay and Amazon have a way that you can set up to charge those customer sales tax now some customers as soon as they see that pop-up will back out and go buy from somebody else because they don't want to pay the sales tax let's say that you had it for a hundred and another guy had it for 103 well they bought from you because it's cheaper but then once the sales tax comes on it's not cheaper the other guys in Colorado Bank usually it doesn't matter but it can't happen so some people like to set that up because then the money comes in some people don't if for any reason you don't set that up and a customer only pays you the hundred dollars you better keep track of it if you better transfer that money that's seven dollars or whatever it is into another bank account or what it's easier for you to keep track of it so you don't spend it because every quarter or every half year every year our your state collects it you have to write a.

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