There’s nothing quite as annoying as taxes. We all have to pay them, no matter what. It’s an inevitable burden that comes along with living in “The Land of the Free”. Even at storage auctions, many facilities charge sales tax on every unit you purchase. But what if I told you there was a way to avoid paying taxes on the units you purchase? Yep, that’s right—with a resale permit, you don’t need to pay taxes on anything you buy to resell!
So what is a resale permit? Also known as a seller’s permit, resale license, or any combination of those words, it quite literally is a permit that allows you to resell goods—and the best part is, if you bring this permit with you to the storage auction, your purchases will be tax exempt. This way, you don’t have to pay taxes on something you’re ultimately going to be claiming on taxes. It’s one way the government helps you out…sort of.
On that note, don’t assume that the resale permit is a proverbial “get out of jail free” card. In fact, most states require that you obtain a tax ID number before you can obtain a resale permit. Once you have a tax ID, storage auctions will turn from a hobby to a full time job; you’ll need to keep track of everything you buy and sell for tax purposes. So with that being said, we suggest the tax ID and resale permit to storage hunters who are doing this full time.
So now you’re probably thinking “oh, well forget that, I’m not paying taxes…I’ll just keep saying it’s a hobby!” Nope! Even if you still only consider it a hobby, after you make a certain amount of money (it varies from state to state), it’s absolutely necessary by law that you apply for a tax ID number and start filing taxes. It’s better to be safe than sorry—you don’t want to owe the government thousands of dollars in back taxes when you could simply could have been paying them all along.
So ultimately, the resale permit is going to help you out big time. So how do you apply for one? Most states have applications available on their websites. Here’s a list of tax information in every state to help make your job a little easier. The best way to equip yourself if with knowledge. Taxes can be frustrating and confusing, but there are tons of great free resources to help you out.