[Skippy_electrician]

It has come to my att. that although trading fgags from person 2 person is fine, selling them is another thing. 2 have every1 converge on a set location and proceed 2 sell frags is against the law!!! I dont have all the details yet and am still wotking on it but... In order for us and reefers 2 sell frags u would have 2 have a buss license. I have never herd of anything happening but if for some reason some1 got mad or was unhappy about something that they have bought, things could take a turn for bad times. Reasone for this is sales tax for the most part. The argument was made that it is somewhat like a garage sale but that thought was shot down. Sorry 2 only have what has benn said, said. But I am looking into this with the people that I have got my buss license and will inform MR of anything else that I come up with. This doesnt mean that anything will ever happen, just that it could given the right circumstances. (yes I am a bad speller as u can c from all my posts, srry)

 

[tszetela]

Ummm I do not believe having a frag trade is againt the law. Well unless the city or town in which it is being held prohibits thing like Tupperware parties. And heck who knows, Plymouth just might.

As for business licenses ( unless from the first point a city requires a some type of event permit) I'm not sure what other type of business licence could be needed for the event. Now if some people who come opperate in a manner similar to a business and have a DBA they would have to regester it.

The sales tax thing I will have to re-read the law. I don't deal much with that area but I do not believe the ocassional sale is subject.

The one area that might be an issue is Federal Income Tax. All income regaurdless of the source from which derived is taxable. So this income need to be reported as business or hobby income. This is true if the sales happen at a frag trade or P2P.

Well I would like to research this more, But I have to go to work. My first day as a fully employeed Tax Accountant! WOOO HOO the fun never stops!

 

[wingsfan]

I don't really think it is against the law either.They have flee markets and that sort of thing and there are no taxes involved. It is just a fee paid to to property owner to set up your little stand or what ever it is your selling. Mot time the fee is just for the convenience of getting your stuff in the same area as other sellers to generate more buyers.

 

[PaintGuru]

While I don't think it is illegal (as one can also hold a garage sale without a license as far as I know), I am sure that you have to report any income from it on federal taxes, as Tim said. Of course, if you did get a license for frag selling, perhaps you could write off a bunch of reefing expenses as business expenses [)].

 

[Sylock]

Where it is true that you are supposed to report the income from any sales you make, are you not also able to deduct the expenses of such sale/item incurred? IE, all the salt, additives, electricity, etc? I'm not an accountant I just play one on the boards ).

 

[hjmtv]

As long as the selling is dome under the pretense of a "hobby" there is no foul. If a member were to have a small personal business of selling, that is where a licience would be required. I don't think any of us have anything to worry about. (except maybe stapels!! the fuzz is coming!! lol)

 

[MATTT]

Oh !!! ohhh... I'll talk to you guy later, I got to hide my brand new pet shark and my stash of cash... It is hard to skip town with a shark in a 10gal tank. [D]

Mattt.

 

[Russ K]

well I guess it could be against the law but. Let me make one great point. If everyone who intended to sell things at the swap were to register themselves as a company this could benefit them. You cant tell me that you actually made money considering all you spend on the hobby. So in actuality you could report a loss to the IRS because of all the money you sink into it i.e. salt, electricity, bulbs, etc. So it would be in the best interest of the government not to mess with it. Race car hobbiest do this all the time as well do many other hobbiests. they set up a company buy all their racing stuff (cars, engines, gas, etc.) enter a few races wow they loss money cus they didn't win. hmmmm then they report a loss on their personal income tax and they are better off.

This is no different. I may have to put my home office downstairs next to my tank. 100% rightoff. and if I sell any frags it offsets the cost. which would mostlikely be in the red.

Just my 2 cents.

 

[murph]

man its **** like this that takes all the fun out of these sort of SOCIAL events. i mean geez if someone is going to come down on that sort of thing i think priorities are way out of whack when we have crack dealers running around on the corners of detroit.

 

[tikki50]

Its simple you use chips and not money. When you show up you purchase chips the fragers turn in the collected chips afterwards. Problem solved. Just like those casino parties you go to.

BTW- you can sell as a DBA "Doing business As" yourself. Just remember that at tax time.

 

[skylergirl]

Well, if this was the case, then the bizillion people who sell on Ebay, myself included, are in big trouble. Ebay is about THE biggest point source that I am aware of for trading/selling "stuff." The government will sure have their hands full if they are going to slap each and everyone of us ebay users.

 

[PaintGuru]

In theory they should pay taxes on ebay as well.

 

[Skippy_electrician]

Yes maybe u should pay tax on ebay, but it is in no way the same and selling on ebay and having a frag swap. I am still not finished with looking into this BUT. As soon as u leave ur residence and go 2 whoevers house u went from a garage sale type sale 2 becoming a "vendor". Just like at a farmers market. I sell a lots of different things at a type of farmers market, and 2 do so I have 2 have my buss lisence, cause there I am a vendor. Again this was just something 2 think about and nothing would ever prolly come of it, but it maybe could, when I find out for sure I will let all know.

 

[jperry8]

I run a business and have done so for some time with no business license. I operate off my own soc. and so can anyone else. A business license is not required to do business. You are obviously responsible to report substantial profits as income as is anyone anywhere. No one that I witnessed at the swap made a "profit" when you take into consideration cost.

And personally this is a ridiculous topic to even waste skin off our fingers to write about. We have enough crap to worry about with our jobs and lives to have someone CRAP on our hobby! How bout we focus on the hobby and not this BS.

Sorry for the flame but jeeze!

 

[Skippy_electrician]

OK, I never said u couldnt do buss without a buss license. I also never said that any1 every made a profit. In fact most if not all lost becasue of "overhead" lights pumps ect...

Ridiculous topic it may be but U DID waste some skin off ur fingers 2 reply, maybe not so ridiculous???

Worry about jobs???ya I lost mine last week so ur not saying anything new 2 me!!!

I am not here trying 2 "CRAP" on ur hobbie, I myself would have been at the swap if I could and wouldnt have thought twice about buying something.

I was just stating something that was put in front of me by a "government" worker as I talked 2 him about how I was bumed about not being able 2 go. BS as it my be in ur eyes, I was making a statement on the poss of a prob and REALLY did not want 2 rain on ur parade or any1 elses. I also am a reefer and enjoy the hobbie greatly!!!

 

[shermlock]

I must let you all know that I am a government agent working with the local and state authorities to root out all of you vile reefers who are trying to evade tax payments to the local, state, and federal tax collecting agencies. I have been working undercover for quite some time.

I have learned how to fit in pronounce lattin coral names, daily visits to coral web sites to check out the new stuff and then give people a "heads up", use the hand blow dryers for 6 hours straight to get the dry reefer's hands look, find a really pretty woman holding a bag of frags and not even notice if she is a man or woman, and finally, when planning a vacation always plan the vacation around cool pet shops. It has taken me 8 years of heavy investigating to break this unlawful coral ring and now you will all be arrested. I am sorry that I had to act like your fellow reefer, but the law is the law and I have to perform my duties.

My operation has proven to be a success and now justice will be served!

Agent Coral silly

Uh...just so everybody is clear, I am not a federal, local, or state agent of any kind and have no authority what-so-ever (just ask my wife).


Skippy, I really do understand that you are just trying to do some research on the issue and just trying to enlighten us on the situation. I am interested in the law and what your findings conclude. I am just trying to add a little humor (very little, I admit) to the thread. No offense is intended to you, just find the subject interesting and amusing.

Scott

 

[skylergirl]

Actually, I once heard on the radio (validity/reliability???) that if you sell something at a garage sale, you are "legally" supposed to report it. But who the heck does THAT?!?

 

[MATTT]

My nephew lost a dog once, we went to the police station and report a lost dog. The officer told us to post an ad at the light pole or some thing. So we did.

I posted my profit at the swap to a light post as soon as I got home. [D]

My wife file tax for H and R block, and she said unless you have a businees lisence and that it is a constance business thing. For example the farmer market, you have a table and a tent as a business. You will be there once or twice at the same time and date. Farmer market does consider a business, it has a name. For me, I do not have a name for me being selling frags. But if, at the swap an owner from a lfs with a lisence, he or she would have to claim on their tax. Or an individual has a hole sale lisence with a business name, that he or she would have to claim their tax. But that is only the info I receive. I am sure we have to pay tax on everything. I even pay tax on the craps I put in my toilet.

Mattt.

 

[02redZ28]

I'm just gonna mail a few pieces of crushed coral with my taxes. Its like the Flintstones paying with clams....maybe I'll have to through a bivalve or two in there to make up for 10 years of neglect!

Pat