Labor, not a sale (WAS job invoices?)

[Robert Goodale]

> I hope the income tax people do not read this.
> Otherwise they might think that without a bill you might have a problem,
calculating your taxable income.
> Regards,
> John M. Ross
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Slightly a new direction on the subject, just a thought for discussion.  In
some states a sale is subject to tax but services are not taxable.  When
completing invoices in one of these states you can save your client some
money and yourself hassle by always indicating part replacement tasks as a
"service".  For example, a new set of damper felts may be written up as
"installed new damper felts".  As such the invoice defines that you sold
damper felts and thus it must be itemized separate from the "labor" portion
of the bill.  The other alternative however is to write it up as a service.
For example "Complete Damper Servicing", or "Damper Overhaul".  Written in
this format it entirely becomes a service.  This is closely cutting the
corners of definition however it is highly unlikely that a piano tech would
ever be challenged in such a small scale sole proprietorship business.

Just a thought the for the day.

Rob Goodale, RPT
Las Vegas, NV