Does income from eBay have to be counted as income for tax purposes?

Answer 1

Shhhhh...

Legally, YES; in practicality, NO.

Unless of course you're bringing in big bucks from ebay.

Answer 2

Ebay.. the name spell success. It is a big business having multi billions dollars of tranaction happening in a year. There are countless person having a earning of 6 figure income. And of course many others having a regular income varying netween $500-$5000 per month. There are many persons, who has taken up this as a career but dropped it because they did not feel as an opportunity due to some or the other reason. There are certain guidelines which need to be followed to be successful in ebay like other business demands.For details visit
http://ebaysimplified.blogspot.com

Answer 3

eBay to some is a full time business. To others it's like an on line garage sale. Show me anyone that has a garage sale and claims the income on taxes and then deducts what they payed for it brand new. I don't even think the IRS wants that, but there are many running a legitimate business and NOT reporting. It's a grey area that I am sure that congress will "fix" real soon because they always need to find ways to generate more money from the working class.

Answer 4

It depends on whether you treat your ebay activities as income or hobby. Note though that IRS is tightening its noose on eBay sellers http://money.cnn.com/2006/08/23/pf/taxes/online_taxes/index.htm

IRS has a checklist that it uses to determine whether or not a money-making activity is legally a business, which means money made is taxable, or a simple hobby – where it is not taxable. The IRS can consider a person to be a legal "business" even though they never incorporated or claimed to be one.

Among the factors to consider are whether: http://www.irs.gov/businesses/small/article/0,,id=99239,00.html

- You carry on the activity in a business-like manner,
- The time and effort you put into the activity indicate you intend to make it profitable,
- You depend on income from the activity for your livelihood,
- Your losses are due to circumstances beyond your control (or are normal in the start-up phase of your type of business),
- You change your methods of operation in an attempt to improve profitability,
- You, or your advisors, have the knowledge needed to carry on the activity as a successful business,
- You were successful in making a profit in similar activities in the past,
- The activity makes a profit in some years, and the amount of profit it makes, and
- You can expect to make a future profit from the appreciation of the assets used in the activity.

Answer 5

Technically, any income that you make is supposed to be claimed. But there are no set rules for Ebay, yet, except for large selling prices. Just like if you find money on the street, your suppose to claim. The IRS loves money!

Answer 6

As of yet no unless your are an established business then yes. Although you could be a good citizen and claim those earnings if you want!

Answer 7

The profit does - so keep good records and don't forget that ebay and paypal charges are your expenses as well as your mailing costs.

Answer 8

If you made more than $600.00 from e-bay or anywere else, your required to claim it as income, but very easy to get around...

Answer 9

unless you classify it as disposing of personal items for non commerical use yes but its an uphill battle and the irs loves it...remember all those pelosi unfunded welfare schemes..now you understand why most working people are irritated about it ..the free lunch aint free.