I want to start my own Ebay business and I know of someone who sells on Ebay. Because she lives in NY, she only reports what income she makes from customers from NY. Is this what I should do? Or is doing this wrong?
2006-08-24 13:29:35 · 5 answers · asked by the_scrapbook_factory 1 in Business & Finance ➔ Other - Business & Finance
ALL income is supposed to be reported (over a certain amount, $200, I think...not sure). Better check with the IRS's website.
2006-08-24 13:35:39 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You're supposed to claim ALL Money made. Not just from your state since selling on the Internet is world wide and anyone and everyone are buying your products off your eBay no matter where they live, you still must report all monies made period. You can keep a monthly record and get a binder with those see through sheets and mark them by the month.. drop your monthly profits in that that should be provided you through the eBay or you make your own and drop them in there. Either way you still have to report everything you make and your friend needs to be told she's wrong in just thinking she only has to report what comes from NY because IRS will find out and she'll be penalized.
Good luck.....
2006-08-25 12:12:57 · answer #2 · answered by BevD 4 · 0⤊ 0⤋
Have to? No. You don't HAVE to do anything. Nobody's going to make you do anything. Supposed to? Yes. You're supposed to claim all money made from an ebay business. Even money made from customers not living in your state. Where states matter is sales tax. You're supposed to charge it to customers living in your state. It's all up to you what you want to do. Do you want to lie on your taxes?
Edit in response to Junior's answer: If you're just selling some of your own property, no you shouldn't have to report your income. However, if you're starting your own ebay business as you say you're going to, you should. You report business income for any other business, why not ebay? If ebay is your source of income, or course it should be reported on your income tax. There's a big difference between selling some of your own property and starting up an ebay business.
2006-08-24 20:38:15 · answer #3 · answered by X 4 · 1⤊ 1⤋
You need to consult with an accountant if you are going to treat this as a business and not just selling a couple of thing online. All of the previous answers bring up good points and there are alot more accounting and tax issues here than what you are asking about.
2006-08-24 21:49:50 · answer #4 · answered by porkchop 5 · 1⤊ 0⤋
lol...Don't listen to them....It's your property; You bought an item and now you are selling it....why the hell would you pay tax for ebay? Don't do it, it's your own personal thing.
2006-08-24 20:51:29 · answer #5 · answered by Junior A 2 · 0⤊ 1⤋