Labor: is it taxable in PA. for machine work ?

grcamna5

Over 1,000 Posts
I just started going to a M/C machinist who works out of his parents home where he lives,he charged me tax on the labor that he did on my parts. is that normal/legal in PA. ?
 
Fer real. In Philly, people hardly ever take anything but cash. No way that dude wants to claim every dime. Nobody is that honest.
 
deviant said:
Fer real. In Philly, people hardly ever take anything but cash. No way that dude wants to claim every dime. Nobody is that honest.

but he gave a receipt so cash or not he's charging tax. Here they say if you pay cash and I don't need to give you a receipt no tax. otherwise there is a paper trail that can lead CRA back to them for "Un-Claimed" taxable income.
 
Ah, but this is not Canada. There is no tax on services in PA. The PO said labor. Essentially, the machinist is compensating for his own income tax. You can only tax for labor on the repair of something.
 
He doesn't have my cycle.
I just found this kid and he has a soda blasting cabinet besides he does good quality machine work.I had him do 10 mins. of soda blasting and he charged me "the shop minimum" of $10+ .60 tax & I gave him a check.He did that same thing for me twice.
I just moved here and can't seem to find a powersports/MC machine shop and another forum member told me about him so I brought him 2 little cylinders & an XR200 crank to rebuild + I was thinking about bringing/sending more work his way.
The last time I went there his Brindle Collie(nice dog but needs more training/care)bit my left hand and he just ignored that even when I showed him my bleeding hand.
I want to find another local motorcycle 'friendly' machinist at this point..
I hate to have to ship the parts away if I can find a local machine dude who's decent.
 
6% is state sales tax and +2% for Philly. I can only speak for Philly, as that's where I lived for 12 years and I own a house there. Not sure he should've taxed you for the blasting, but rebuilding a crank is taxable as that's a repair. If you have him custom fab a part, that is not taxable. The same goes if he machines parts that you intend on reselling- no sales tax.
 
I did tell him I planned to sell the pr. of CB350K4 sidecovers he blasted;he's a 21 yr.old living under his Ma & Dad's roof so he may not be up w/ what's right,I might have to mention it but some of his other prices seemed reasonable..
 
If you really want the truth, which most people don't realize or willing to accept (or believe). Your labor is your property which is not taxable. Only profits and gains are taxable according to the IRC (Internal Revenue Code). When you (we) perform any labor (or work) for pay, you (we) are merely trading your time (your property) for pay. There is no gain or profit in the transaction.

But for the purposes of this thread (and only in the eyes of the IRS) yes, labor is taxable. Or just use cash... ;)
 
edelweiss said:
If you really want the truth, which most people don't realize or willing to accept (or believe). Your labor is your property which is not taxable. Only profits and gains are taxable according to the IRC (Internal Revenue Code). When you (we) perform any labor (or work) for pay, you (we) are merely trading your time (your property) for pay. There is no gain or profit in the transaction.

But for the purposes of this thread (and only in the eyes of the IRS) yes, labor is taxable. Or just use cash... ;)
The 6% he charged is PA Sales Tax. The Feds have nothing to do with that. When you take a car to a garage for a repair in PA, you pay 6% PA State Sales tax. Its not income tax.
 
That was the first time I encountered taxable labor,I'll try paying cash next time and see if he still does.
 
"USE TAX

Out-of-state businesses and Internet vendors often falsely advertise that they sell taxable items “tax free”. However, Pennsylvania law requires the payment of use tax by any person who purchases taxable goods or services delivered into or used in Pennsylvania if sales tax is not collected by the vendor. Use tax is the counterpart of the state and local sales taxes."

Taken from this site http://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/Pages/Sales%20Use%20and%20Hotel%20Occupancy%20Tax/Use%20Tax/Use%20Tax.aspx#.VRM5OvnF8a0

I believe the labour (machining) is a taxable service.
 
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