Now I made 2000 in sales and profit of 800, how do I aviod self employment estimate taxes if I make even more next year? I dont want to pay taxes every quarter. So if anybody can give me a complete detail answer on ebay taxes, you will get best answer.
2006-12-12 05:40:47 · 2 answers · asked by hgary06 3 in Business & Finance ➔ Taxes ➔ United States
If you had a profit of $800 last year, you need to file, and will be responsible for self-employment tax.
If you don't want to file every quarter, you can pay the whole year's worth of estimated taxes in the first quarter. Otherwise, you're subject to penalties.
When someone just sells their own stuff on ebay that they don't want any more, they usually end up selling for less than the purchase price (same as garage sales) so don't normally have a profit so there's nothing to be taxed. People who sell on ebay as a business, making a profit, are subject to tax. If someone sells somethine of their own but makes a big profit on it, maybe an antique or collectible, then that's taxable.
2006-12-12 16:04:11 · answer #1 · answered by Judy 7 · 1⤊ 1⤋
I understood that ebay was still under the "Garage sale" laws unless you set up and "Ebay Store."
Perhaps I need to find out more details as well.
2006-12-12 06:20:31 · answer #2 · answered by Scott M 5 · 0⤊ 1⤋