shape
carat
color
clarity

QUESTIONS IN Need of answers

Status
Not open for further replies. Please create a new topic or request for this thread to be opened.

RileyNY

Rough_Rock
Joined
Feb 26, 2010
Messages
67
Is their tax on diamond "engagement rings"?

I heard people say "pay cash for the diamond ring" by how can you pay cash for a diamond ring when the ring cost $10,000...?

Wouldn''''t it look suspicious if someone came into a store with $10,000 in cash?

I want to buy a diamond ring but do not want to use my personal credit card. I was thinking of getting a prepaid credit card work from Rite Aid? I know you have to give put money on the card in the store, Rite Aid. But after you do I want to go to the shop and get my diamond ring using me prepaid Visa card. I am a bit confused after I give the store person the card and they swipe it, how do they get the money? (Since with credit cards you have to pay the end of the month) but with this pre-paid you already gave cash to the cashier at Rite-Aid who put it on your card.
 
wire transfer.
 
hu what do you mean?
33.gif
 
Date: 2/26/2010 9:42:49 PM
Author:RileyNY
Is their tax on diamond ''engagement rings''?

I heard people say ''pay cash for the diamond ring'' by how can you pay cash for a diamond ring when the ring cost $10,000...?

Wouldn''t it look suspicious if someone came into a store with $10,000 in cash?

I want to buy a diamond ring but do not want to use my personal credit card. I was thinking of getting a prepaid credit card work from Rite Aid? I know you have to give put money on the card in the store, Rite Aid. But after you do I want to go to the shop and get my diamond ring using me prepaid Visa card. I am a bit confused after I give the store person the card and they swipe it, how do they get the money? (Since with credit cards you have to pay the end of the month) but with this pre-paid you already gave cash to the cashier at Rite-Aid who put it on your card.
I guess you don''t understand the concept of PREPAID? When you buy a prepaid card, you pay the amount (plus whatever extra % they charge) by either debit or a money order or a wire transfer etc before you get the card.
 
what about just a debit/atm card ?
 
Date: 2/26/2010 9:42:49 PM
Author:RileyNY
Is their tax on diamond ''engagement rings''? Yes, unless you buy it in a place that doesn''t have sales tax (e.g., Oregon).

I heard people say ''pay cash for the diamond ring'' by how can you pay cash for a diamond ring when the ring cost $10,000...? Who says ''pay cash for the diamond ring''? It''s the least safe way to buy, since you don''t leave a paper trail. Paying with a credit card would be the safest way, because you have a third-party record of the transaction and you get protection from the credit card issuer.

Wouldn''t it look suspicious if someone came into a store with $10,000 in cash? I don''t know about suspicious, but it''s probably not the best way to do it if you can pay using another method.

I want to buy a diamond ring but do not want to use my personal credit card. Why not? I was thinking of getting a prepaid credit card work from Rite Aid? I know you have to give put money on the card in the store, Rite Aid. But after you do I want to go to the shop and get my diamond ring using me prepaid Visa card. I am a bit confused after I give the store person the card and they swipe it, how do they get the money? (Since with credit cards you have to pay the end of the month) but with this pre-paid you already gave cash to the cashier at Rite-Aid who put it on your card. I don''t know about prepaid cards from Rite Aid, but I''d make sure you can even put $10,000 on one, make sure there''s a way to verify that the balance is added to the card before you leave the store (I''d hate to think about giving $10,000 to a cashier with no way to verify the cashier added the balance to the card), make sure you get the same protections as you would with a credit card, and make sure there aren''t any exorbitant fees associated with use of the card.
 
Why don't you tell us what you're looking for (post it in the Rocky Talky forum) and let PSers help you choose a premium quality diamond from one of our trusted vendors? Then when you decide which stone and mounting you'd like, you go to your bank and they will set up a wire transfer for you that will go directly to the vendor (for a small fee paid by you). You will walk out of the bank with proof that the transfer was made (which is proof of payment). I've done it before, when I bought two loose diamonds to make stud earrings and it was very easy. Wire transfers are immediate cash for the seller. You'll also get a discount from our PS vendors for paying by wire transfer.

In all cases, my diamonds were bought out of state and I didn't pay tax on any of them, nor did I pay tax on any of my custom work (except for GOG because I live here).
 
Gemgirl makes an excellent point. Rocky Talky is an excellent forum for posting many of the questions you have had this week. The posters there are super helpful, and very knowledgeable about all things stone, setting and price related!
 
I believe you are supposed to pay taxes on your ring in whatever state you reside even if you don't pay at time of purchase..
 
The previous poster is correct. You are technically supposed to pay a use tax to your home state if you purchase any item, including engagement rings, out of state, though this varies state by state.

Also, paying for a ring in $10,000 cash is not good, in addition to the reasons previously stated, because I believe federal law requires any cash transaction totaling $10,000 or more to be reported to the government as a potential terrorist activity.
 
Date: 2/27/2010 11:52:20 PM
Author: sdevante
The previous poster is correct. You are technically supposed to pay a use tax to your home state if you purchase any item, including engagement rings, out of state, though this varies state by state.

Also, paying for a ring in $10,000 cash is not good, in addition to the reasons previously stated, because I believe federal law requires any cash transaction totaling $10,000 or more to be reported to the government as a potential terrorist activity.
Do wire transfers over 10k fall under "cash" for reporting purposes?
 
When people say "Pay cash" they do not mean to take bills with you... they simply mean don''t use credit that you cannot pay off at the end of the month.
 
I am not 100% sure on this, but my sense is that a wire transfer would still be subject to governmental scrutiny.

I used to be a stock broker and anytime a client would do a transaction over 10k it had to be reported. The typical method of payment would be a check. A check and a wire transfer are similar, so I am assuming the law would apply.
 
My bank and my tax preparer both told me today that any transaction into or out of your account that is $5k or higher is automatically reported to the IRS.
 
Status
Not open for further replies. Please create a new topic or request for this thread to be opened.
GET 3 FREE HCA RESULTS JOIN THE FORUM. ASK FOR HELP
Top