do i have 2 pay tax on items i sell on ebay?

Answer 1

Strictly speaking, all income should be declared

Answer 2

Depending on the state that you live in, you might be required to collect city and/or state sales tax on items that you sell (this is dependant on where the buyer lives).
Here in Colorado, I am required to collect tax if my sales are ABOVE $300 per month.
I would recommend that you apply for a Business License in order in order that you get a tax number to pay your taxes. Additionally, if you get the Business License, you can write off ALL supplies, advertising, and expenses that you incur during the year, for your business on your income taxes.
Lastly, you have to include your income from Ebay, even if your sales are less than $5000 on your yearly income tax.

Answer 3

If you're just selling your old stuff, for less than you paid for it originally, you don't report it as income and don't pay tax on it. If you're trying to make a profit off of ebay by buying things for resale, any profit is taxable income. That's profit though, not sales - you'd subtract any expenses like cost to buy the items, ebay fees, packing and shipping expenses..

Answer 4

thats a good question ! Id think that if you are selling second hand (used) items then you already paid tax on them when they were new, but, Im sure the government have though of a way to squeeze more money out of people like yourself who just want to make a little bit of money and spoil the fun.

Answer 5

Not only do you have to pay income tax on the things you sell, you're supposed to pay sales tax on the things you buy.

Most people scoff at these taxes and don't fess up. I'm sure that the time is coming when it will be tracked, gotta love paypal, and you'll be forced to comply.

Answer 6

There are both income tax and sales tax issues. This question gets asked about every week. Look at some old answers too by paging backward.

Answer 7

you only have to pay vat,,tax on new items you sell,, because there second hand the tax was paid when they were new,, Ive been trading on eBay for years,,, no problems,,,

Answer 8

You need to report your profits as income and pay taxes on them.

Answer 9

Yeah I heard we are supposed to be taxed on what we sell and buy. I didn't last year and I don't plan on it this year!

Answer 10

generally you have to pay tax if your buyer lives in your state and your state normally collects tax on that item.

for out of state sales, you probably need to contact your Department of Revenue.

Answer 11

If you make a profit, yes, you are supposed to pay taxes on those profits.