Restoration of antiques and antique sales

[joegetit]

I have a client who restores antiques and also buys and sells antiques as a business.

Does my client have to pay taxes on income received from:

1) the restoration of antiques?

2) the sale of antiques?

[AnnetteB6]

Yes.  

Both the restoration and selling of antiques and simply buying and selling for a profit are considered to be self-employed businesses (on their own or together as a single business).  If there is an overall profit made from doing this work, then income tax and self-employment tax would be owed.

Report the income and expenses on Schedule C.

[joegetit]

Thank you for the reply about antiques and antique sales. I am aware the income earnes is self-employed subject to income and FICA.

However; in New York, is this income subject to sales tax?

Is it possible that the sale of antiques might be subject to sales tax, but not the restoration income?

[PatriciaV]

The State of New York Tax Bulletin Quick Reference Guide for Taxable and Exempt Property and Services (TB-ST-740) specifically mentions as subject to sales tax:

• the sale of furniture, appliances, and light fixtures, and 
• maintaining, installing, servicing, and repairing of tangible personal property.