Forums: Discussions for entrepreneurs and small business.

This may be a very simple question to answer but I know nothing about taxing for the type of service I provide.

I imagine the answer to this question might vary for state & local taxes so I guess I`m inquiring about federal.

Would anyone know whether I need to file & pay taxes on my virtual tour services income? Essentially I take photos and put them online for the client so there is no "tangible" product but I don`t know how that qualifies.

Occasionally I put the photos on cd for the customer and I do charge tax for that being a "tangible" product.

Any help would be appreciated.

Sales taxes - it depends on your state.
Taxes on income - very simple: any source of income is taxed.



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Steve Mann
Internet Videographer
MannMade Digital Video
My Email

Thanks for your response, I should`ve stated that more clearly.

Rather than income tax, my question is whether I need to pay the Transaction Privilage Tax on the virtual tour services as I do with sales of tangible items such as flyers & cd`s.

I`ve only seen "Transaction Privilege Tax" in the state of Arizona and in certain foreign countries. 


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Gina L. Gwozdz, CPA
http://GLGcpa.com
http://TaxTreasures.com

OK that makes sense since I`m in Arizona. I don`t know what I was thinking because I`m basically talking about "sales tax" which applies only at the city & state level, not federal.

I think in my head I was meaning to ask about the city & state level but I confused my State reporting with Federal....blah blah blah.

So then the question is, does anyone know if I have to report "sales tax" for the type of service I`m providing, which is taking photos and posting them online for the customer.

In Arizona you are required to collect a transaction privilege tax (which technically isn`t a sales tax, but it is very similar) if your business activity includes (among other things)...retail sales, printing and publishing.  If you are selling your tours to the end user that would be a "retail sale", if not, but you are "publishing" them online or in print, that would be a taxable sale.  If you are "printing" anything that is a taxable sale.



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Gina L. Gwozdz, CPA
http://GLGcpa.com
http://TaxTreasures.com