Im just wondering what most breeders do for sales tax. Do you raise the price and include sales tax in the price of the puppy? or add it on after you quote a price for a puppy? Any thoughts would be appreciated.

Include it in the price.

This was just discussed about 5 days ago. Why don't we just keep beating this dead horse and see if we can't get a couple of state's tax departments to start after breeders.

sorry, didnt read that thread! Please forgive me.

If your kennel is a DBA then you have to charge state sales tax and file quartely or yearly. But you are suppose to report your litter(s) earnings to the IRS at the end of the year. It only takes 1 person to turn you in. They(IRS) can supena your AKC records. Knew a breeder that it happen too they were breeding 15 years and never claimed. They had to pay back taxes with penalties plus a lawyer.

I know locals have to pay tax. Just wondering if you include it in the $1000 or add it on top of the $1000 per pup?

How about if you can't say something nice try putting up the linkie to the past conversation. I sure didn't see it either.

That's a good way to scare newer breeders right off here.

When it comes to something this serious such as sales tax and the IRS, as great as this forum is, I strongly suggest your contacting an accountant directly. This is not something you want suggestions on and every state is diffrent. You need to really ensure it's done correctly, whatever that means for you in your particular state.

JMHO

I do agree that you should seek the advice of a tax professional in your state, however, in many cases, dogs are considered an agricultural product- similar to that of produce at roadside stands, livestock, etc. and are exempt from sales tax. EX:Horse breeders do not pay sales tax on the sales of horses and this is treated similarly.

In my state, dogs are different than livestock. I have to collect sales tax on puppy or adult dog sales (I add to the price). I do NOT have to collect sales tax on "services" such as boarding.

MK

Of course check with your own state.

We have to charge sales tax on puppies in Canada too. I add it to my puppy price.