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Author Topic: Labor: is it taxable in PA. for machine work ?  (Read 3251 times)

Offline edelweiss

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Re: Labor: is it taxable in PA. for machine work ?
« Reply #10 on: Mar 25, 2015, 17:19:50 »
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...  ;)
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Offline irk miller

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Re: Labor: is it taxable in PA. for machine work ?
« Reply #11 on: Mar 25, 2015, 18:54:33 »
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. 

Offline edelweiss

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Re: Labor: is it taxable in PA. for machine work ?
« Reply #12 on: Mar 25, 2015, 19:05:51 »
I was just replying to the initial thread entry. Labor and/or services are taxable.  ;)
« Last Edit: Mar 25, 2015, 19:07:35 by edelweiss »
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Offline grcamna5

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Re: Labor: is it taxable in PA. for machine work ?
« Reply #13 on: Mar 25, 2015, 19:34:17 »
That was the first time I encountered taxable labor,I'll try paying cash next time and see if he still does.
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Offline cqyqte

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Re: Labor: is it taxable in PA. for machine work ?
« Reply #14 on: Mar 25, 2015, 19:42:32 »
"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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