# CA Taxes for Scrap Gold Business



## GoldExchange (Mar 17, 2012)

Hello,

We are in CA and would love to get some help regarding this topic. We're buying scrap gold and selling to a refinery. We have our CA Secondhand Dealer's License and all the city permits but we're still a bit stumped on the tax issues. The refinery that we go to has filled out Form BOE-230 for us which signifies that they purchase tangible personal property from us for the sole purpose of resale and nothing else, from what I understand this exempts us from any sales or use tax, or am I horribly mistaken?

Additionally, when it comes to income tax, will this tax be imposed on the the full purchase price of the metals + my profits? or will it only be on my profits after sold to the refinery?

Any other taxes I need to know about to make my day a bit more enlightening?

Thank you all!


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## jack_burton (Mar 17, 2012)

People pay taxes in our business!? :shock: 

Kidding aside, you should have tax EIN number with the Feds. Every quarter you should be making a tax payment based on your gross sales. The percentage rate is dependent on the type of business you've got set up, sole proprietor, LLC, Inc. and so forth. Best bet is to check with a CPA in your area to make sure all your bases are covered. The government will come for whats due if you ever get audited. It is definitely one of the areas you should be absolutely straight on.


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## GoldExchange (Mar 19, 2012)

Thanks! Just visited a tax office yesterday and was told that as long as I'm selling to another business(refiner) and that business fills out form BOE-230, im exempt from imposed sales and use tax. Only thing im paying would be income tax based on gross sales minus expenses, so it's whatever percentage based on profits.

If anyone else is reading this and lives in CA, I'd be happy to guide you in the right direction for information regarding business taxes....

Cheers!
GE


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