Many of us know wealthy people who are cheap or some like to say
are tight with their money. While many of us might cringe or snub our
noses at this behavior, especially from the top of the food chain that
can afford the finer things in life, we would do well to learn from it.
The rich have long understood the old maxim "buy low and sell high" as a
method for wealth generation. One way the "rich" buy low, we would do
well to mimic, is to avoid or reduce paying sales taxes when purchasing
products.
For instance, the states with zero sales taxes are Alaska, Delaware, Montana, New Hampshire, and Oregon. Should you live near one of these states your as good as gold. Take advantage of your good fortune. If you live outside one of these no sale tax states - a little calculation is in order. Should the cost of the trip be less than the savings you realize through a purchase in one of these states, I would go for it. Maybe consider a vacation to one of these states assuming you are planning one anyway. Additionally, The states with "low" sales taxes are Alabama (4%), Colorado (2.9%), Hawaii (4%), Louisiana (4%), Missouri (4.225%), New York (State) (4%), Oklahoma (4.5%), South Dakota (4%), and Wyoming (4%). Consider buying your products and goods in one these 9 low sale tax states.
If you are buying for your own business, for resale, then you don't have to pay sales tax on the purchase. Not only are you avoiding the tax but paying generally at wholesale prices. There are various IRS rules that need to be followed. Generally, you will need to apply and have an EIN number and apply for a tax permit or reselling license (unless you live in one of the 8 non-sales tax states shown above) through your state government. The tax will have to be accounted and collected from the consumer. The money you save and thus make between what you sold and the wholesale purchase price adds up. A true win-win for you and your business.
Now, for many of us that don't have a business, you can still take advantage of wholesale prices and also avoid the sales tax by purchasing previous owned products. You can make your purchases both off-line and on-line to take advantage of this method. For most products, the resellers of goods and products sold through; for example, auction houses, garage sales, and flea markets, do not have to report any taxes on sales. The bigger your purchase at these second hand-retailers, the larger your savings, depending upon the sales tax in your municipality and state. On-line purchase sites for second-hand products include as an example, classified ad sites; such as, Craigslist, and online auction sites; such as, eBay.
For those of us who don't care on purchasing second-hand products but would still like to avoid paying taxes on purchases, consider buying online. Online retailers that are not located physically in the state where the consumer is purchasing are not required to collect any sales tax. For instance, Amazon only collects sales tax from consumers living in Kansas, Kentucky, New York, North Dakota, or Washington. Should you live in one of these states, consider purchasing at one of the multitude of other online-retailers vying for your dollar.
Finally, most states have a tax free holiday. For some states, this is a way to help people pay for certain purchases. For instance, parents who need to help their children for school supplies are granted a tax free holiday from certain states. Some states use it to help spurt on the local economy.
So instead of being critical of that cheap ole millionaire, let's learn from their budget-minded philosophy, and save on your purchases through sales tax relief and avoidance strategies as outlined in this article.
To Your Financial Health and Well-Being.
For instance, the states with zero sales taxes are Alaska, Delaware, Montana, New Hampshire, and Oregon. Should you live near one of these states your as good as gold. Take advantage of your good fortune. If you live outside one of these no sale tax states - a little calculation is in order. Should the cost of the trip be less than the savings you realize through a purchase in one of these states, I would go for it. Maybe consider a vacation to one of these states assuming you are planning one anyway. Additionally, The states with "low" sales taxes are Alabama (4%), Colorado (2.9%), Hawaii (4%), Louisiana (4%), Missouri (4.225%), New York (State) (4%), Oklahoma (4.5%), South Dakota (4%), and Wyoming (4%). Consider buying your products and goods in one these 9 low sale tax states.
If you are buying for your own business, for resale, then you don't have to pay sales tax on the purchase. Not only are you avoiding the tax but paying generally at wholesale prices. There are various IRS rules that need to be followed. Generally, you will need to apply and have an EIN number and apply for a tax permit or reselling license (unless you live in one of the 8 non-sales tax states shown above) through your state government. The tax will have to be accounted and collected from the consumer. The money you save and thus make between what you sold and the wholesale purchase price adds up. A true win-win for you and your business.
Now, for many of us that don't have a business, you can still take advantage of wholesale prices and also avoid the sales tax by purchasing previous owned products. You can make your purchases both off-line and on-line to take advantage of this method. For most products, the resellers of goods and products sold through; for example, auction houses, garage sales, and flea markets, do not have to report any taxes on sales. The bigger your purchase at these second hand-retailers, the larger your savings, depending upon the sales tax in your municipality and state. On-line purchase sites for second-hand products include as an example, classified ad sites; such as, Craigslist, and online auction sites; such as, eBay.
For those of us who don't care on purchasing second-hand products but would still like to avoid paying taxes on purchases, consider buying online. Online retailers that are not located physically in the state where the consumer is purchasing are not required to collect any sales tax. For instance, Amazon only collects sales tax from consumers living in Kansas, Kentucky, New York, North Dakota, or Washington. Should you live in one of these states, consider purchasing at one of the multitude of other online-retailers vying for your dollar.
Finally, most states have a tax free holiday. For some states, this is a way to help people pay for certain purchases. For instance, parents who need to help their children for school supplies are granted a tax free holiday from certain states. Some states use it to help spurt on the local economy.
So instead of being critical of that cheap ole millionaire, let's learn from their budget-minded philosophy, and save on your purchases through sales tax relief and avoidance strategies as outlined in this article.
To Your Financial Health and Well-Being.
I truly hope this article helps my readers. To receive other
saving, and making money strategies right to your inbox - sign-up at http://www.topcashsecrets.info
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