How do people make money from scrap metals

Some places are simply backward in how they attract and hold businesses... There is nothing like this whatsoever in NH!

Cities should offer them up as practice for the police and marine snipers.

-- Live Simply. Speak Kindly. Care Deeply. Love Generously. -- anon

Unless YOU know what you are doing.

Illinois does not have a personal property tax.

Many states do. I am no expert, but I believe these occur in states that collect a state property tax and are a device by which local governments derive their levy.

Illinois does not get income from property taxes. It used to, but it took such a bath during the depression that it decided to get its revenue from income and sales taxes. The state oversees the assessment process to make sure that each county assesses fairly, but the moneys collected go to the counties and municipalities.

As far as Iggy owing sales/use tax on his fork lift, he probably does. But that can be lessened in several possible ways.

In IL sales/use tax is intended to be paid by the end user. If you run a office furniture company and buy a truckload of desks for resale, you do not pay sales tax on them. You collect the tax from each sale and send it to the state. If you take one of the desks and use it in your office, you become the end user and owe tax on its purchase price.

Exemptions include:

Items for resale.

Equipment used for manufacturing, printing or farming. (A forklift is technically materially handling equipment so I do not think these apply except as farming exemption)

Or equipment purchased for lease to other parties.

Which path he takes depends on his accountant, but:

So Iggy can claim the lift as inventory. If anyone asks he can say it is a demonstrator model. He will not owe use tax.

He can form a second company and lease the equipment back to himself. He will not owe use tax.

He can pay the use tax and expense the lift on his state and federal income tax. Given the amount he generally pays for this stuff, he can probably just write it off in the first year. Worst case, 5year MACRS depreciation will mean (assuming he is a sub s corp doing the normal fiddle on his FICA tax and a federal tax rate of 15%) he will cover any use tax paid in income tax for the first 1.5 years, and probably make that much again in the remaining

He will however, owe income tax on the entire nondepreciated amount when he sells it.

Paul K. Dickman

I am not an accountant, I am just a guy who fills out his own tax returns.

Martin Eastburn on Sat, 05 Nov 2011

Thieves is thieves. Holy places have long been a store for valuables, because nobody would desecrate a sacred place. Unless you didn't believe in the deity that sanctified the place.

John on Sat, 05 Nov 2011 19:59:38 -0400 typed in rec.crafts.metalworking the following:

It is the "storage cost" which is the problem. Even if it is on a pallet, under a tarp, in the back yard - there's the pallet, the tarp and the taxes on the back yard you have to consider.

I can never figure out who the shills are.

jsw

Shills can be avoided entirely by never exceeding your predetermined maximum bid.

I don't, but they have driven me right up to it.

jsw

Everything I have is for sale, except my motherland. So I think that I do not owe use tax on anything. Thanks for clarifying this for me. Stop by one day if you get nearby.

What difference does it make? Your max is what it is worth to you.

If you don't like being driven to your max, then your max is too high.

About two days a week I am within a few miles of your warehouse. When I am visiting my pop in the home, or working on the family house, trying to clean it up to saleable condition.

Unfortunately, I am on the Lake St. side of the Proviso Rail Yards. There ain't but two ways across those tracks and both of 'em suck.

Paul K. Dickman

Hi Iggy,

Where's your warehouse located?

Bert

Your solution is obvious --> <

berkeley, il.

would love to see you.

You must be near Ferrellgas then. They fill my propane tanks.

If you are worried about a couple of hundred dollars to make 50k you ought not even think about going into the scrap business. I did the scrap business when there wasn't an internet to make it easy to reach in users of specialized parts. And then there are the people that bitch about the high eBay charges for selling your merchandise.

Nah, put your money in wall street and get flimflammed out of it.

John

The main thing is not to piss off the auctioneer by dragging down the speed of the auction. You have to be recognized by the auctioneer so he will immediately take your bid. If you don't bid except for a couple of items you may get cut out.

John

I have fun with shills. I screwed a bunch of them. bid fast and furious for a couple of bids and then stop suddenly.. they make another bid and get hung up.

They will come back to you and offer the merchandise at a lower price. They know that your know they tried to shill you but don't say anything other than you will buy it for a much lower price.

John