TAX in auction house auctions?

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Posted By: Sammy 

All,

I am sorry, I know this is a very irresponsible question. But is there a way to avoid TAX in auction house auctions? I live in Illinois, everytime I won something from Mastro, I got to pay 8+% tax. Since I am planning to win some stuffs that would ended at around $30K this time. I am curious whether I can avoid paying the huge amount of tax.

Can I change my billing address to my friend's address who is living in another States) but shipping address still remain as Illinois?? Would that work??

People, pls give me some tips here. Paying huge amount of tax is not fun.

Thx, Sam

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Posted By: Julie

First, you understand this is entirely illegal...second, if this is really as good friend, you could just have Mastro send it to you at his address.

I know Mastro is a googleianaire, but--doesn't he have to pay tax, too?

I think getting caught would have horrendous consequences...doesn't Mastro know where you live already?

I have the same trouble with California dealers (7.5 state wide, and 8.2 locally)--and one pesky dealer back east who has some sort of outlet in L.A., but INSISTS I pay MY local taxes for his stuff (8.2). That's just plain wrong. I should pay his S. California tax (7.5). he wouldn't believe me...

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Posted By: JC

As long as, the merchandise ships over state lines, it is illeagal to charge TAX. You could also provide a re-sale number and be responsible for it also. Remember, we all have partners in our daily life. One of the is our heavenly father and the other thinks he's our heavenly father (Uncle Sam)...

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Posted By: jay behrens

Julie, you are partially correct on what the state sales tax you should be paying. If the vendor has an outlet in SoCal, all he is supposed to collect is CA state tax. He doesn't collect any local tax from you becuase you do not live in the same tax distict as him. If you lived in SoCal he woudl charge the SoCal rate. If his outlet was in the same tax region as you in the SF area, then you pay the local tax rate there.

Unless the tax law changed in the past few years, this is how it worked for my comic store when we shipped stuff within CA. If we shipped in teh Sacramento area, we charged the full local tax. If we shipped to anywhere else, we only had to collect basic state tax.

Jay

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Posted By: leon

I would have the product sent to a place that Mastro does not have an office. As someone who ships to different states daily I will tell you that we charge tax in every state. We have affiliations in every state so are bound by law to do so. This might be different for other states or things but I get asked this question all of the time. Plus, some of my computer competitors win business from ignorant businesses in Texas and it pisses me off. They don't know that if they don't pay a tax on capitalized equipment, when they buy it, then they will pay the EXACT same tax at the end of the year when they report. For this card instance I would just find a good friend in another state.....regards all

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Posted By: Tony C

What is your name and bidder number? This is completely illegal. I am going to report this to the government

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Posted By: leon

This is why this board is messed up sometimes. You are no doubt another one of the dumba**** joking around. Yeah, report me.....better yet go to ebay, look under leonl@flash.net, go to the "me" page, and get my daytime phone number and give me a call.....I am waiting....

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Posted By: jay behrens

Tony, care site any laws that state it is illegal for you have an item you won shipped to some place other than your home residence?

Jay

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Posted By: Jay Miller

While the poster was probably pulling Leon's leg, what was being proposed (just ask Dennis Kozlowski) is illegal. If you ship out of state and then bring the item back into the taxing state to evade sales tax that is illegal. There is nothing wrong with buying in Illinois and shipping to say Iowa. However, when the item is brought back into Illinois it is subject to the tax (if things work the way they do in my area). If the tax is not then declared and paid then tax evasion has taken place.

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Posted By: leon

There is not a question that buying something in one state and shipping to another is evading taxes, which is illegal. Legal vs illegal is a lot of times more of a moral issue than anything else. Tax evasion, in this case, is much like driving 56mph in a 55mph zone (in my opinion only). And I do understand the consequences on the tax issue are much harsher......so for anyone that wants to pay more tax go right ahead and do it....best regards

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Posted By: Julie

.....

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Posted By: Julie

not out of moral scruples. I have a friend who eats the tax, every time, when he sells stuff...

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Posted By: jay behrens

Does he put ketchup or anything on it first?

Jay

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Posted By: MW

Jay Miller is correct. Having items shipped out of state (and to a location other than one's residence) in order to avoid the payment of taxes is against the law. Small cases involving this type of fraud may not be prosecuted, but larger (and repeated) cases will.

http://money.cnn.com/2002/06/04/news/companies/tyco/

Even if one's morality dictates that tax evasion is OK or forgivable, I don't think the risks are worth it. Just pay the sales tax.

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Posted By: Julie

a few people complain that his prices are a little high--that;s the reason. He charges no tax.