I am a photographer and new to the whole sale tax forms. If I have a sale for $500 to photograph an event, but $100 dollars of that was used to buy prints --- do I list that $100.00 as a deduction on the st-3 form. I have already paid sales tax on those prints and technically it wouldn't be income anymore because I used it to buy prints. I would appreciate any insight that might help.
Thanks
Check with a CPA to see if you can qualify as a reseller when purchasing prints. You then become exempt from paying sales tax on the products you are buying. While your costs are a write off for your income tax, sales taxes will still be charged on the full price.
Depending on the state, your sale may or may not be taxable (or portions of it would be). In some states they don't tax services, in others they do only certain services, etc. etc. etc.
Calling the Department of Revenue in your state is bit a waste of time, since they rarely say something is not taxable (talking from experience), so you really need to talk to a CPA. You set up your billing, sales tax collection/reporting, and then you are set.
I think if you charge the client a flat $500. And spend $100 on prints as an expense (which includes tax) you then can write-off that entire receipt which would include the sales tax you paid.
Naturally purchasing the raw materials for your business activitis is tax deductable. As is buying a camera, though possibly not immediately but over time.