do I have to pay tax on the money I made from ebay?
2006-12-13 14:00:30 · 4 answers · asked by kooldog1000 2 in Business & Finance ➔ Taxes ➔ United States
You can only deduct assets used in a business. For an asset such as a computer that is used for both business and personal purposes, you can only depreciate the percentage used for business. For example, if the computer is used 50% for business (with the other 50% for personal use), then you can only depreciate 50% of the purchase price of the computer.
2006-12-13 14:42:17 · answer #1 · answered by jseah114 6 · 1⤊ 0⤋
I am not an accountant.
Usually a computer is expensed as a business expense (like a chair or calculator). I assume that expense would go on your Schedule C, as a business expense.
Of course, you'll have to declare your income from that activity at that time. The IRS might also ding you for Self-Employed taxes (form SE) and penalize you if you didn't file quarterly.
A really strict auditor might even require some documentation as to the use of that computer -- personal vs business. If you have to, can you produce use logs?
2006-12-13 14:11:53 · answer #2 · answered by geek49203 6 · 2⤊ 0⤋
You better be very careful. If you sell only a couple things you are probably OK, if you start a business you can write off the computer and you will have to claim the income.
2006-12-13 14:11:15 · answer #3 · answered by Nelson_DeVon 7 · 2⤊ 0⤋
If you want to take a deduction based on business you did, you need to declare your sales and profit of course.
2006-12-13 14:05:02 · answer #4 · answered by Anonymous · 2⤊ 0⤋