if u buy hooks, lead, plastic baits in bulk, you can pay it on the front end. Amazing how the politicians found a way to extract ca$h from the people.
Better double check that....I think they get to pay...and as a manufacturer ...you get to pay again!!!
http://www.irs.gov/businesses/small/article/0,,id=203117,00.htmlArtificial lures are all devices (from whatever materials made) that are designed to be attached to a fishing line and that simulate an article considered edible to fish or that otherwise are intended to induce a fish to attempt to confront, swallow, bite, or consume the device. An artificial lure usually includes one or more attached hooks. Artificial lures include, but are not limited to, plugs, spoons, jigs, feathers, spinners, soft-plastic lures, and spear fishing decoys. Rev. Rul. 88-52 1988-1 C.B. 356
The "manufacturer" gets to pay the 10% on the value of the finished good....what you charge for it.
As I mentioned before ...if you are in the business...you better check....I don't think there is any "hobby exception" ...nor a cost/sale price determination....it's just plain 10% on your selling price.....period.
There are some other threads on this issue on this ...and other forums...
There is one somewhere on how the IRS had a field day at local flea markets nailing guys selling baits.
