# Cash jobs



## AngieM (Apr 13, 2016)

No judgement here. Just wondering how you respond when you give a bid and the person comes back offering cash for a discount. 

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## finishesbykevyn (Apr 14, 2010)

AngieM said:


> No judgement here. Just wondering how you respond when you give a bid and the person comes back offering cash for a discount.
> 
> Sent from my moto z3 using Tapatalk


I believe the black market is bigger than we all know, which is half the reason economies are suffering.
That being said, if one chooses to to go that route, It's just best not to have any record of it. Aka, emails, text etc. Etc.
It is illegal after all. Just remember that. 
However it never stops people from selling things on Kijjiji as a part or full time job. Lots of avenues that people sell stuff and don't pay taxes.. 
Then again who's kidding who. The amount of money I spend on beer in Canada, is surely enough to pay for my own personal golden highway..


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## kmp (Jan 30, 2011)

I don't give discounts for cash, used to but not anymore. Demeans my worth regardless of if I pay taxes or not. It is like them asking to lower your price.


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## AngieM (Apr 13, 2016)

I told this guy, "you can pay however you want but I'm still paying sales tax. I want to stay straight with the IRS " Then the conversation got awkward.

Maybe I'm overly fearful of the IRS. The painting company that I spawned from was audited for sales tax. Thankfully that company was very good at collecting it. When the audit was complete, they found she had actually collected a little too much sales tax. But of course, they don't refund. 

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## jennifertemple (Oct 30, 2011)

I tell them you can pay anyway you like but I always write up the invoice, report my income and pay the tax owing. My discount policy does not change for cash. I can usually give some kind of discount, in any case.


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## BeerbowerPainting (Jul 31, 2018)

I always explain that I run a legitimate company and if they want to pay cash I'm fine with that but I cannot offer a discount. Most have accepted that with a sheepish grin but a few have been mad about it.


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## Wildbill7145 (Apr 30, 2014)

I get a kick out of it when grumpy people ask about a cash discount. You tell them you don't do that and they angrily reply "Well, I'm not paying the sales tax!" I'm certainly not paying it for you so I guess we're done here...


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## RH (Sep 7, 2010)

Running a legitimate business means doing everything by the books. I can only imagine the difficulty of trying to record things differently if some jobs were cash and some not. And the thought of trying to survive an audit by the IRS if cash was a major part of your income stream? Forget it. And although I have never done the math, I would think that being able to deduct legitimate expenses probably makes up for having to pay the income tax - or at least mitigates it quite a bit.

Just like customers pay the cost of the paint and sundries you use, so should they also pay the cost of you declaring everything so your business is on the up and up.


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## Brushman4 (Oct 18, 2014)

RH said:


> Running a legitimate business means doing everything by the books. I can only imagine the difficulty of trying to record things differently if some jobs were cash and some not. And the thought of trying to survive an audit by the IRS if cash was a major part of your income stream? Forget it. And although I have never done the math, I would think that being able to deduct legitimate expenses probably makes up for having to pay the income tax - or at least mitigates it quite a bit.
> 
> Just like customers pay the cost of the paint and sundries you use, so should they also pay the cost of you declaring everything so your business is on the up and up.


The Outfit, Syndicate, La Costa Nostra, whatever you want to them has been running businesses both illegal and legit for a very long time and finding it very lucrative.


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## ElegantPainting (Aug 25, 2014)

The price you receives IS our cash/check price. There's a 2.9% credit card processing fee if you wish to pay with a card.


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## CApainter (Jun 29, 2007)

Brushman4 said:


> The Outfit, Syndicate, La Costa Nostra, whatever you want to them has been running businesses both illegal and legit for a very long time and finding it very lucrative.


Your analogies are pretty close, but comparing painters to mob organizations?..you're right on the money!


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## Redux (Oct 27, 2018)

I did a cash job once, only I didn’t know it. I had submitted an invoice to a client for $22K, sales tax inclusive, broken down on the invoice as $20,253.16 + $1,746.84 sales tax. 

A couple of days later there’s a FedEx package on my front porch. I opened it up and inside was one of those check boxes that you get when you order personal checks with a rubber band wrapped around it, but instead of containing checks, it was stuffed with Benjamin Franklins...220 of them. I called the client, thanking him, but drove the cash out to his house in exchange for a check. I didn’t want to go through the fuss of having to file a Form 8300 for receipt of a cash payment in excess of $10K and running cash through the business checking account, my bank also required to file Form 8300 for cash deposits in excess of $10,000. 

I was upset with the thought of the money being left on my porch without anybody being there to sign for it...


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## CApainter (Jun 29, 2007)

Alchemy Redux said:


> I did a cash job once, only I didn’t know it. I had submitted an invoice to a client for $22K, sales tax inclusive, broken down on the invoice as $20,253.16 + $1,746.84 sales tax.
> 
> A couple of days later there’s a FedEx package on my front porch. I opened it up and inside was one of those check boxes that you get when you order personal checks with a rubber band wrapped around it, but instead of containing checks, it was stuffed with Benjamin Franklins...220 of them. I called the client, thanking him, but drove the cash out to his house in exchange for a check. I didn’t want to go through the fuss of having to file a Form 8300 for receipt of a cash payment in excess of $10K and running cash through the business checking account, my bank also required to file Form 8300 for cash deposits in excess of $10,000.
> 
> I was upset with the thought of the money being left on my porch without anybody being there to sign for it...


Sounds like a laundering scheme. There's so much tainted cash laying around with limited means of washing the larceny out of it.


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## RH (Sep 7, 2010)

Brushman4 said:


> The Outfit, Syndicate, La Costa Nostra, whatever you want to them has been running businesses both illegal and legit for a very long time and finding it very lucrative.


Don’t pay your bill? My Italian wife has a cousin Angelo who may pay you a visit - really.


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## RH (Sep 7, 2010)

CApainter said:


> Sounds like a laundering scheme. There's so much tainted cash laying around with limited means of washing the larceny out of it.


Reminds me of Breaking Bad where one of the biggest problems Walter had was trying to deal with all the cash he’d acquired.


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## Redux (Oct 27, 2018)

CApainter said:


> Sounds like a laundering scheme. There's so much tainted cash laying around with limited means of washing the larceny out of it.


Yet the onus of reporting falls on the recipient, and the penalty for not doing so could result in the greater of $25,000 or the amount received.

I find that a lot of small business owners aren’t aware of Form 8300 filing requirements. 

I like the comparison RH made to Breaking Bad’s Walter White...great series!


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## jennifertemple (Oct 30, 2011)

Canada has no "Form 8300". More than 50% of the work I do is cash paid! I keep copies of all invoices, bank deposit details and receipts. CRA has never had any issue with me yet. I do deposit all payments and make notes on any monies that were not related to the painting business. (IE: if I sell a car or some such) I used to get mainly checks but my new area seems very cash inclined. (I have no idea why!)



I can not see the point of hiding cash payments. You could not deposit them so you can not use them to cover the expenses of life.


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## Brushman4 (Oct 18, 2014)

RH said:


> Don’t pay your bill? My Italian wife has a cousin Angelo who may pay you a visit - really.


Will he make me an offer I can't refuse?


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## Brushman4 (Oct 18, 2014)

jennifertemple said:


> Canada has no "Form 8300". More than 50% of the work I do is cash paid! I keep copies of all invoices, bank deposit details and receipts. CRA has never had any issue with me yet. I do deposit all payments and make notes on any monies that were not related to the painting business. (IE: if I sell a car or some such) I used to get mainly checks but my new area seems very cash inclined. (I have no idea why!)
> 
> 
> 
> I can not see the point of hiding cash payments. You could not deposit them so you can not use them to cover the expenses of life.


So you're saying cash deposits in Canada are not allowed?


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## Brushman4 (Oct 18, 2014)

CApainter said:


> Sounds like a laundering scheme. There's so much tainted cash laying around with limited means of washing the larceny out of it.


Au contraire, there are many ways to launder money such as cash businesses controlled by previously mentioned unsavory individuals, like Casinos owned by a certain individual who is known to have Russian ties who operated in Atlantic City N.J.


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## Brushman4 (Oct 18, 2014)

jennifertemple said:


> Canada has no "Form 8300". More than 50% of the work I do is cash paid! I keep copies of all invoices, bank deposit details and receipts. CRA has never had any issue with me yet. I do deposit all payments and make notes on any monies that were not related to the painting business. (IE: if I sell a car or some such) I used to get mainly checks but my new area seems very cash inclined. (I have no idea why!)
> 
> 
> 
> I can not see the point of hiding cash payments. You could not deposit them so you can not use them to cover the expenses of life.


And who says you have to deposit them? You could pay others the same way in cash!


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## CApainter (Jun 29, 2007)

Brushman4 said:


> Au contraire, there are many ways to launder money such as cash businesses controlled by previously mentioned unsavory individuals, like Casinos owned by a certain individual who is known to have Russian ties who operated in Atlantic City N.J.


Give it up. LOL!


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## jennifertemple (Oct 30, 2011)

Brushman4 said:


> And who says you have to deposit them? You could pay others the same way in cash!


CRA would definitely become interested if I was living so well with no reasonable income. Also, I don't mind paying my tax bill, it buys me civilization.


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## futtyos (Aug 11, 2013)

*Sales tax?*



Wildbill7145 said:


> I get a kick out of it when grumpy people ask about a cash discount. You tell them you don't do that and they angrily reply "Well, I'm not paying the sales tax!" I'm certainly not paying it for you so I guess we're done here...


Wildbill, could you explain what the "sales tax" is in Canada?

AngieM (in post #4) and Alchemy_Redux (in post #12), could you explain what you mean by "sales tax" here in the US?

The only thing that comes up in my mind regarding "sales tax" is the tax on the paint and sundries that one would have receipts for that I normally just pass on to the client s I normally do not mark up the paint or other supplies.

Just wanting clarification here.

futtyos


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## Vinyl 54X (Mar 12, 2019)

On a side note. My neighbor just had a garage sale. He sold a refrigerator for $300. I guess the hundreds were all counterfeit. The bank teller just took them when he went to deposit. Maybe you should carry one of those funny pens when taking cash.


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## Brushman4 (Oct 18, 2014)

CApainter said:


> Give it up. LOL!


What do you want me to give up, the truth? LOL!!!


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## finishesbykevyn (Apr 14, 2010)

futtyos said:


> Wildbill, could you explain what the "sales tax" is in Canada?
> 
> 
> 
> ...


Futtyos. In Canada, if your doing more than 30k in sales your suppose to have an HST# (Harmonized Sale Tax) You are then to add 15% tax to all Invoices. Same as when you buy anything there is tax on it.
In return, you can write-off all the tax you paid on supplies etc..

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## Wildbill7145 (Apr 30, 2014)

finishesbykevyn said:


> Futtyos. In Canada, if your doing more than 30k in sales your suppose to have an HST# (Harmonized Sale Tax) You are then to add 15% tax to all Invoices. Same as when you buy anything there is tax on it.
> In return, you can write-off all the tax you paid on supplies etc..
> 
> Sent from my SM-T330NU using Tapatalk



Then you get the joy of dealing with CRA which is an absolute nightmare. Impossible to get in touch with them. You practically have to be an accountant to speak their language. If you make one little mistake, they crucify you by mail and there's virtually no means of explaining things.


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## Brushman4 (Oct 18, 2014)

Wildbill7145 said:


> Then you get the joy of dealing with CRA which is an absolute nightmare. Impossible to get in touch with them. You practically have to be an accountant to speak their language. If you make one little mistake, they crucify you by mail and there's virtually no means of explaining things.


Sounds just like the IRS.


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## jennifertemple (Oct 30, 2011)

@finishesbykevyn , it's 13% hst.


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## jennifertemple (Oct 30, 2011)

Vinyl 54X said:


> On a side note. My neighbor just had a garage sale. He sold a refrigerator for $300. I guess the hundreds were all counterfeit. The bank teller just took them when he went to deposit. Maybe you should carry one of those funny pens when taking cash.


In Canada, if you sell personal possessions for which you do not expect to make a profit, no tax is owed. (Yard sales, home furnishings, used appliances etc.)


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## jennifertemple (Oct 30, 2011)

Wildbill7145 said:


> Then you get the joy of dealing with CRA which is an absolute nightmare. Impossible to get in touch with them. You practically have to be an accountant to speak their language. If you make one little mistake, they crucify you by mail and there's virtually no means of explaining things.


Since becoming "Retired" I never go over 30K! I am really careful about that. I got fed up with the on-going relationship with the CRA and do everything in my power to stay out of their sites now. They decided we needed to be audited one year, the process took over 18 months and cost a bloody fortune because of the excess work by my CA. In the end I called UNCLE! "I'll pay to be done!"


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## RH (Sep 7, 2010)

jennifertemple said:


> Since becoming "Retired" I never go over 30K! I am really careful about that. I got fed up with the on-going relationship with the CRA and do everything in my power to stay out of their sites now. They decided we needed to be audited one year, the process took over 18 months and cost a bloody fortune because of the excess work by my CA. In the end I called UNCLE! "I'll pay to be done!"


So, it sounds like all that “free” medical care isn’t really all that free.


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## jr.sr. painting (Dec 6, 2013)

For repeat customers if they offer I'll do 1/2 and 1/2. Enough check to cover overhead and taxes. The cash half still includes sales tax so I just put the extra in the safe or give the employees a little bonus if we knock it out quick. New customers always a check.


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## Brushman4 (Oct 18, 2014)

RH said:


> So, it sounds like all that “free” medical care isn’t really all that free.


Now, now RH, as you always tell us mortals don't get political.:biggrin:


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## futtyos (Aug 11, 2013)

*Free medical care?*



RH said:


> So, it sounds like all that “free” medical care isn’t really all that free.


Gosh! Errors in "allopathic" medical care in America is the 3rd leading cause of death here after heart attacks and cancer. I wonder if that figure would go up or down if medical care were "free" as it is in Canada. :surprise:

futtyos


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## finishesbykevyn (Apr 14, 2010)

jennifertemple said:


> @finishesbykevyn , it's 13% hst.


It's 15% in NL. After Muscrat falls comes online it may go even higher for all we know!


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## RH (Sep 7, 2010)

Brushman4 said:


> Now, now RH, as you always tell us mortals don't get political.:biggrin:


Meh, it’s _only_ Canadian politics so it’s not a big deal.:devil3:


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## DittonWilson (Jun 16, 2018)

AngieM said:


> I told this guy, "you can pay however you want but I'm still paying sales tax. I want to stay straight with the IRS " Then the conversation got awkward.
> 
> Maybe I'm overly fearful of the IRS. The painting company that I spawned from was audited for sales tax. Thankfully that company was very good at collecting it. When the audit was complete, they found she had actually collected a little too much sales tax. But of course, they don't refund.
> 
> Sent from my moto z3 using Tapatalk


I am in the process of starting my own business and I am finding that I am fairly ignorant. So far I am just doing time and materials. Do I have to pay sales tax on my whole bill? Or is the sales tax just for materials you provide the customer?


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## jennifertemple (Oct 30, 2011)

finishesbykevyn said:


> It's 15% in NL. After Muscrat falls comes online it may go even higher for all we know!
> 
> 
> Sent from my SM-T330NU using Tapatalk


Dasng, that's high!


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## CApainter (Jun 29, 2007)

DittonWilson said:


> I am in the process of starting my own business and I am finding that I am fairly ignorant. So far I am just doing time and materials. Do I have to pay sales tax on my whole bill? Or is the sales tax just for materials you provide the customer?





From the Internet said:


> Both manufacturers and distributors make direct sales to retailers or other distributors. Sales made that are intended to be resold to consumers can be exempted from sales tax collection under a resale exemption. Since sales taxes are required to be paid only once, the theory behind a resale exemption is simple: the customer (consumer or end user) will pay sales tax on the full retail price so when the reseller purchases from the manufacturer or distributor, they can be exempt from paying sales tax on that transaction. Resellers who want the benefit of the exemption must present manufacturers and distributors with current and effective proof of their resale intentions.



According to the information above, the sales tax on material only needed to be paid once. Whoever bought the material had to pay the sales tax.


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## vwbowman (May 15, 2017)

*Cash is King*

My bids are always based on cash or check. I made it clear, in advance, that payment by credit card would incur a 3% fee.


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## vwbowman (May 15, 2017)

In Oregon there is no sales tax, so the situation may be different. However all my bids were for cash or check. I made it very clear, in advance, that payment by credit card would incur a 3% fee. Some people still opted for for CC payment.


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## DittonWilson (Jun 16, 2018)

CApainter said:


> According to the information above, the sales tax on material only needed to be paid once. Whoever bought the material had to pay the sales tax.




So the sales tax being discussed here is for labour. ?


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## finishesbykevyn (Apr 14, 2010)

DittonWilson said:


> So the sales tax being discussed here is for labour. ?
> 
> 
> Sent from my iPhone using Tapatalk


Yes. However your suppose to be registered and have tax# .. Then you add tax onto all your invoices. It's what makes the world go round..

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## futtyos (Aug 11, 2013)

*Definitions please*



finishesbykevyn said:


> Yes. However your suppose to be registered and have tax# .. Then you add tax onto all your invoices. It's what makes the world go round..
> 
> Sent from my SM-T330NU using Tapatalk


f by k, you are in Canada and dealing with Canadian law along with definitions of terms such as "sales tax" that might not be applicable to those in other countries or even possibly other provinces of Canada! How can you give any type of advice to a painter in Idaho, USA regarding "sales tax?"

I, claiming to be near Chicago, Illinois, have asked a couple of members here who are in the states to define what they mean by "sales tax." I am still waiting for a response from them.

futtyos


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## RH (Sep 7, 2010)

futtyos said:


> f by k, you are in Canada and dealing with Canadian law along with definitions of terms such as "sales tax" that might not be applicable to those in other countries or even possibly other provinces of Canada! How can you give any type of advice to a painter in Idaho, USA regarding "sales tax?"
> 
> I, claiming to be near Chicago, Illinois, have asked a couple of members here who are in the states to define what they mean by "sales tax." I am still waiting for a response from them.
> 
> futtyos


I would like to assist but since I live in Oregon where there is no sales tax, I can’t.:devil3:


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## finishesbykevyn (Apr 14, 2010)

futtyos said:


> f by k, you are in Canada and dealing with Canadian law along with definitions of terms such as "sales tax" that might not be applicable to those in other countries or even possibly other provinces of Canada! How can you give any type of advice to a painter in Idaho, USA regarding "sales tax?"
> 
> 
> 
> ...


Futtyos.Tax laws will vary from Every State, country, province. I'm unsure where everyone on the forum is located, but don't be fooled that the laws are not the same.
If your an operating company, you have to abide by your local regulations.
It's called Sales Tax. Which means when you go to your local store, is there sales tax on your items? If yes, then chances are that you too as a contractor are suppose to also be charging a sales tax to your customers..
But don't worry, after a few years of not collecting it, you'll be sure to get a friendly reminder from the IRS or your local government office.. They don't miss a beat those guys!




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## CApainter (Jun 29, 2007)

DittonWilson said:


> So the sales tax being discussed here is for labour. ?
> 
> 
> Sent from my iPhone using Tapatalk



I don't know.


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## futtyos (Aug 11, 2013)

*Contractual agreement*



finishesbykevyn said:


> Futtyos.Tax laws will vary from Every State, country, province. I'm unsure where everyone on the forum is located, but don't be fooled that the laws are not the same.
> If your an operating company, you have to abide by your local regulations.
> It's called Sales Tax. Which means when you go to your local store, is there sales tax on your items? If yes, then chances are that you too as a contractor are suppose to also be charging a sales tax to your customers..
> But don't worry, after a few years of not collecting it, you'll be sure to get a friendly reminder from the IRS or your local government office.. They don't miss a beat those guys!
> ...


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## AngieM (Apr 13, 2016)

In Iowa, where I live, I have to collect and pay sales tax on my labor and material (7% in my county). I have a tax ID number that I presented to Sherwin Williams to apply for a tax exemption on all the paint I buy because it will be resold. Not a lot of people take advantage of the tax exemption because then you have to be sure to itemize your paint on each invoice.

There are a couple exceptions. New construction and Remodels are exempt from sales tax. But if you get audited, you have to prove it was indeed one of the 2.

Since I tend to neglect paperwork, I hired a bookkeeper to make sure my sales tax gets filled and paid quarterly. 

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## AngieM (Apr 13, 2016)

@futtyos

I went over this same scenario with my bookkeeper. She said, you can't subtract the sales tax from the paint of your invoice. The irs will charge you back for it even though, yes, you already paid the sales tax once. The best way to deal with the state double dipping, is to get a tax exemption from the paint store. 

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## finishesbykevyn (Apr 14, 2010)

futtyos said:


> finishesbykevyn said:
> 
> 
> > Futtyos.Tax laws will vary from Every State, country, province. I'm unsure where everyone on the forum is located, but don't be fooled that the laws are not the same.
> ...


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## finishesbykevyn (Apr 14, 2010)

Maybe this can help..
http://www.salestaxstates.com/sales-tax-calculator-illinois-chicago-60602

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## Holland (Feb 18, 2011)

AngieM said:


> No judgement here. Just wondering how you respond when you give a bid and the person comes back offering cash for a discount.
> 
> Sent from my moto z3 using Tapatalk


I'll take them on occasion. The consumer is indoctrinated to ask for them, so I don't take offense when it happens.


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## Holland (Feb 18, 2011)

Correct me if I'm wrong here, but the Service Industry does not pay sales tax (at least in my state). Materials have already been taxed at the Paint Store (unless you are buying at wholesale).


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## Lightningboy65 (Mar 12, 2018)

Sales tax on labor varies from state to state. In PA, money collected for labor on improving real estate is not subject to sales tax. So the auto mechanic collects sales tax for his labor, the builder or house painter does not. Each state is different. But most states operate in this manner.

As far as collecting sales tax on materials, most states do not require contractors to collect that either. The sales tax is paid by the contractor when purchased , and the contractor is not treated as a reseller. But there again, it varies, and this can get complicated. Better have your books set up right if you are doing large jobs and buying wholesale.


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## CApainter (Jun 29, 2007)

Lightningboy65 said:


> Sales tax on labor varies from state to state. In PA, money collected for labor on improving real estate is not subject to sales tax. So the auto mechanic collects sales tax for his labor, the builder or house painter does not. Each state is different. But most states operate in this manner.
> 
> As far as collecting sales tax on materials, most states do not require contractors to collect that either. The sales tax is paid by the contractor when purchased , and the contractor is not treated as a reseller. But there again, it varies, and this can get complicated. Better have your books set up right if you are doing large jobs and buying wholesale.


I looked it up. You can't charge the home owner a sales tax for materials, and if you do, they don't have to pay it. You have to mark up the materials on the invoice to cover the sales tax you were obligated to pay to the supplier. And if you were exempt from paying a sales tax directly to the supplier, you have to eventually pay it to the state. As I understand it.


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## Lightningboy65 (Mar 12, 2018)

CApainter said:


> I looked it up. You can't charge the home owner a sales tax for materials and they don't have to pay it. You have to mark up the materials on the invoice to cover the sales tax you were obligated to pay to the supplier. And if you were exempt from paying a sales tax directly to the supplier, you have to eventually pay it to the state. As I understand it.


Yeah, but kevin is operating out of country- obviously different rules apply. 

Your summary seems spot on for the States!


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## CApainter (Jun 29, 2007)

Lightningboy65 said:


> Yeah, but kevin is operating out of country- obviously different rules apply.
> 
> Your summary seems spot on for the States!


I don't know what the hell I'm talking about. lol!


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## finishesbykevyn (Apr 14, 2010)

Lightningboy65 said:


> Yeah, but kevin is operating out of country- obviously different rules apply.
> 
> 
> 
> Your summary seems spot on for the States!


Ya, in Canada we pay tax on just about everything except groceries. . It's how the politicians can keep giving themselves raises every year...


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## Lightningboy65 (Mar 12, 2018)

Used to be when we would go fishin' in Canada we would keep our receipts and send for a refund of the GST. I guess they put an end to that now. It would usually be about $100 or so, back when $100 would still buy something. That 8% adds up! Of course that's the National sales tax. On top of that was the Provincial sales tax, which was not refundable.

But the Molson and Labatt 50 was much cheaper than in the states!


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## Thompson06040 (Jul 30, 2019)

I never give cash discounts. On the rare occasion that a customer got mad, I asked them if they would ever go into work and offer to work for a discounted salary for the week. They see my point pretty quickly and drop the discussion.


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## PACman (Oct 24, 2014)

Lightningboy65 said:


> Used to be when we would go fishin' in Canada we would keep our receipts and send for a refund of the GST. I guess they put an end to that now. It would usually be about $100 or so, back when $100 would still buy something. That 8% adds up! Of course that's the National sales tax. On top of that was the Provincial sales tax, which was not refundable.
> 
> But the Molson and Labatt 50 was much cheaper than in the states!


did they pay you in loonies?


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## rentonpainter (Jun 29, 2018)

When you are running a painting company you should always protect yourself. I didn't know about the form 8300 so thanks for that tip. I never want to get in trouble with the IRS but everyone runs their business their own way.


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## jennifertemple (Oct 30, 2011)

What happens when the cheap, cash only folks refuse to pay? I hate to tell you but you'd be in no position to collect, can place no liens or take them to court! Keeping it legal protects all parties!


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## jennifertemple (Oct 30, 2011)

Brushman4 said:


> So you're saying cash deposits in Canada are not allowed?


Not at all, we deposit cash on a regular basis as do many retail operations BUT if you deposit very large sums, you must be able to show the money was legally acquired. One red flag for the financial institutions is when you suddenly make a very large deposit and your business has not done many cash deposits prior. They will take the deposit and send information to applicable authorities.


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## Woodco (Nov 19, 2016)

I dont understand that. If a BUSINESS deposits a bunch of cash and reports it as sales income, and it gets taxed, whats the problem? Thats basically proof that it was legally acquired, isnt it? Theres no difference between cash, check or card as long as its recorded and reported. If you own a business and deposit a bunch of cash in a personal account, its a different story. Everything that goes in my personal account, is transferred from my business account, which is tied into my quickbooks, and thus documented and recorded. 

Is it YOUR responsibility to verify that the cash you are paid with was legitimately sourced? Is there a lot of money laundering through trade companies in Canada? hell, I wish someone would want to launder money through my company...


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## Woodco (Nov 19, 2016)

jennifertemple said:


> What happens when the cheap, cash only folks refuse to pay? I hate to tell you but you'd be in no position to collect, can place no liens or take them to court! Keeping it legal protects all parties!


That wouldnt matter, because a contract is still a contract, no matter how they pay. If my client wanted me to pay in cash and I didnt want to report it, I would simply delete the invoice after they paid me. But until I get paid, the invoice is still there, and the contract is still valid....


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## Joe67 (Aug 12, 2016)

Woodco said:


> I dont understand that. If a BUSINESS deposits a bunch of cash and reports it as sales income, and it gets taxed, whats the problem? Thats basically proof that it was legally acquired, isnt it? Theres no difference between cash, check or card as long as its recorded and reported. If you own a business and deposit a bunch of cash in a personal account, its a different story. Everything that goes in my personal account, is transferred from my business account, which is tied into my quickbooks, and thus documented and recorded.
> 
> Is it YOUR responsibility to verify that the cash you are paid with was legitimately sourced? Is there a lot of money laundering through trade companies in Canada? hell, I wish someone would want to launder money through my company...


The point of looking for the "cash discount" is to assume you can get the discount because it can all go under the table - as unreported proceeds. So the operating assumption is that it does not get recorded and reported. And then that large cash deposits trigger potential audits.

I don't think it's called "laundering" - there's just plenty of cash economy work that goes on outside of the taxation system and I'll assume a lot of it in painting. FWIW, I know a guy whose been painting "under the table" for ... like ever. He's in trouble with the taxing authorities, but still leaves it under the table so just plays cat and mouse. I'm not condoning it, and it's no way to live. But there is a lot of it out there and a lot of people operate on the assumption that there is a cash discount b/c of the ability to skirt the reporting. IMHO, not a thing to risk if you have a successful and above board business going on.


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## Woodco (Nov 19, 2016)

Joe67 said:


> The point of looking for the "cash discount" is to assume you can get the discount because it can all go under the table - as unreported proceeds. So the operating assumption is that it does not get recorded and reported. And then that large cash deposits trigger potential audits.
> 
> I don't think it's called "laundering" - there's just plenty of cash economy work that goes on outside of the taxation system and I'll assume a lot of it in painting. FWIW, I know a guy whose been painting "under the table" for ... like ever. He's in trouble with the taxing authorities, but still leaves it under the table so just plays cat and mouse. I'm not condoning it, and it's no way to live. But there is a lot of it out there and a lot of people operate on the assumption that there is a cash discount b/c of the ability to skirt the reporting. IMHO, not a thing to risk if you have a successful and above board business going on.


When I said 'laundering' I was referring to ACTUAL money laundering, not cash jobs.


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## juanvaldez (Sep 7, 2019)

The problem that can come with a cash job is usually the customer wants the same guarantees, quality, service but at a discount. And I’m my time, it’s usually asked for by people who can afford the regular price but are too cheap and are just looking for a deal. To me it’s all the same cash check card all the same. At this point I just get annoyed by the ask and say to them it all gets deposited in the same place and bills get paid out of the same place. Not worth it IMO. 


Sent from my iPhone using Tapatalk


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## Woodco (Nov 19, 2016)

juanvaldez said:


> The problem that can come with a cash job is usually the customer wants the same guarantees, quality, service but at a discount. And I’m my time, it’s usually asked for by people who can afford the regular price but are too cheap and are just looking for a deal. To me it’s all the same cash check card all the same. At this point I just get annoyed by the ask and say to them it all gets deposited in the same place and bills get paid out of the same place. Not worth it IMO.
> 
> 
> Sent from my iPhone using Tapatalk


I've never been asked about a cash discount. If people try to lowball me, I tell them I'll knock a few bucks off for a cash payment, but cash aint getting deposited in the same place, if you catch my drift. If the job is $650, I'll knock 50 bucks off for cash.


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