Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

US taxation issue I have been doing business in CA with a…

Hi,US taxation issue I have been...
Hi,US taxation issue
I have been doing business in CA with a foreign partner to sell some stuff in ebay. My partner have an ebay account, and a paypal account. When he gets an order, he informs me of the order, and I ship the items to the buyer.When we started the business, I asked about us taxation issues here to set up sales tax in CA, because my entity is in CA, and one CPA here recommends my partner to collect CA sales tax. So he did it.Recently paypal is asking if my partner is not us person or entity and is not subject to US taxation, or a US person or entity and subject to US taxation.I thinks the partner should check "not us person or entity and is not subject to US taxation."
We have collect some sales tax, so should we return the buyers later? What does it affect our business? We don't need to collect them any more? I don't need to report the sales within CA?Please let me know.
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 hours by:
10/19/2017
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,220
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
Verified

Welcome to Just Answer! Thank you for giving me the opportunity to assist you! I will do my best to help!

Ask Your Own Tax Question

Ebay is not referring to sales tax. They are asking if your partner is subject to income tax, or US withholding tax. Many times a foreign person is required to have up to 30% withholding tax on income that is connected to a US trade or business.

Additionally, do you have a partnership agreement with this foreign individual? If he is truly your partner, you should be filing a Form 1065 partnership tax return to report the income that you jointly earn, and he would pay tax on his share. Also, if you do have a partnership, and he is a foreign partner, you must file a Form 8804, even if there is a loss or no income for him to report. You also need to file a Form 8805 and 8813.

I hope this answers your question. If you have any more, please feel free to ask and I will be happy to answer.

Thanks! Have a great week!

Roger

taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,220
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
Verified
taxmanrog and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 10 months ago
Hi,I attached photos from paypal, questioning us taxation for reference.
My partner is not a business entity, but an individual, helping me sell some stuffs, and getting extra money. We don't have a partnership agreement. After finishing sales, we divide the transaction. When the sales occurs within CA, he sets up his paypal account to collect sales tax, and I am going to pay the sales tax next year.
For example, when we make sales of $100 within CA, we collect $108 with the tax, and the partner transfers $75+$8 to me to let me pay the sales tax next year. The partner gets $25, and he will report it to his country.
I hope you would understand our business more.
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask taxmanrog Your Own Question
taxmanrog
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,220
1,220 Satisfied Customers
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.

taxmanrog is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
US taxation and sales tax issueI started ebay business with
Second opinion] US taxation and sales tax issueI started ebay business with a Korean relative. We don't have a partnership agreement. The partner has an paypal and ebay account, gets a sales order, an… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
US taxation and sales tax issue I started ebay business with
US taxation and sales tax issueI started ebay business with a Korean relative. We don't have a partnership agreement. The partner has an paypal and ebay account, gets a sales order, and let me dropshi… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,674 satisfied customers
Thanks for the help beforehand. I want to file a tax return
For Lane: Hi and thanks for the help beforehand.I want to file a tax return on under california Tax Statues. However, there are 3 things in mind that are important for my question:1. I'm a Non-US Resi… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
How are you, Ok im starting a online business with my
Ok im starting a online business with my brother an we were gonna create a LLC in TN. The filing cost for TN is going to be around 400 where as here in MS its 50. Is there any diffrence then filing it in one state over the other? MS does a state tax and TN does not. … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,609 satisfied customers
My writing partner and I have a Canadian General Partnership
Hello, my writing partner and I have a Canadian General Partnership for our business. She lives in Saskatoon, Saskatchewan and I live in San Francisco, California. We are launching an online retail si… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
286 satisfied customers
Sales tax question. I am going to do business with my
sales tax question.I am going to do business with my relative. I am going to sell my merchandises thru my relative's ebay account. My business is located in CA, and the relative is in South Korea, but… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,609 satisfied customers
Second opinion] Have a business in Europe, but I'm selling
Second opinion] Have a business in Europe, but I'm selling mostly to US customers. Customers will order in my webshop, I will order it with a supplier in China or US and they send it directly to the U… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I'm not sure I've chosen the right category of attorney, but
I'm not sure I've chosen the right category of attorney, but I'll ask my question and it can be passed along if necessary. My husband has a personal collection of old records that he has collected ove… read more
TaxWhisperer
TaxWhisperer
Principal
Master's Degree
24 satisfied customers
I will be establishing a Delaware LLC or C Corp for my
I will be establishing a Delaware LLC or C Corp for my business, selling software applications online. I am utilizing the services of Fastspring, which acts as a reseller, collecting payments and payi… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,674 satisfied customers
I live in Texas and would like to sell a few things on eBay.
I live in Texas and would like to sell a few things on eBay. I'm not trying to make it into a business at this time, but I read that since I live in Texas I need to get a state tax id, because I have … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
1099-K. I received my first 1099-K from Paypal. I am not a
Customer: ***** *****. 1099-K. I received my first 1099-K from Paypal. I am not a business. Over the past year I sold my Hallmark Ornament collection. Some I made a profit on, but most were sold for l… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I got a letter (CP2000) from the IRS a few days ago saying
I got a letter (CP2000) from the IRS a few days ago saying that PayPal sent them a 1099K for the year 2013. The 1099K shows that I made $51,115/approx. in Ebay sales in 2013. Now, the IRS wants us to … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I sold a collection of approximately 500 model car kits that
I sold a collection of approximately 500 model car kits that I collected from 1992 to 2011 on ebay with payments through paypal. The amoount exceeded $20K so paypal issued me a 1099 K. I bought these … read more
abci168
abci168
Principal
27 satisfied customers
I am using my friend's ebay account to sell. I have a seller's
I am using my friend's ebay account to sell. I have a seller's permit, a business license. But the ebay account is his social security number. How do I pay tax. Do we both need to file? Does my friend… read more
Angie
Angie
Bookkeeper
55 satisfied customers
Hi! When I report quarterly sales tax in Iowa, I have been
Hi! When I report quarterly sales tax in Iowa, I have been reporting my total sales for the quarter, minus returns (ebay). Should I be taking out ebay expenses, paypal expenses, and shipping cost? Or … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I was on a freelancing website about 2 years ago and met up
I was on a freelancing website about 2 years ago and met up with this user who needed some things done for him online and he paid me $25 per time. I made like $200 the first year. This year we opened … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I live in NYC, I post auctions and items for sale on my eBay
I live in NYC, I post auctions and items for sale on my eBay account, but I do not physically own or handle the actual product.. The shipper/owner of the product is in another state ( MI ), do I still… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
i am selling stuff on ebay through MY account, and have opened
i am selling stuff on ebay through MY account, and have opened a store on ebay selling my boyfriends stuff for him....so I linked it to his paypal account....he is going to claim it as income and pay … read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x