If you sell something you own on ebay,how do the tax's work?,does the IRS want to know about it ?,do you keep some sort of document or piece of paper for proof or something at the end of the year?,I am asking because i heard it always counts as income,and you need to pay tax's for income,
I could be wrong..idk.
2007-01-29 19:48:35 · 6 answers · asked by Maybe Man.Maybe. 1 in Business & Finance ➔ Taxes ➔ United States
You need to pay tax on any PROFIT you make.
If you're selling a used item for less than you paid for it, there are no tax consequences. Casual sales are not subject to tax.
If you sell something for MORE than you paid for it, taxes will be due on the profits.
If you're selling homemade crafts and such, the IRS will probably treat your activity as a hobby. Profits are taxed, but deductions for expenses are not allowed. If you're truly operating as a business, you can contest the IRS' position on that though it certainly helps if you act like a business. Such things as getting business licenses, registering for state sales tax and collecting and paying in the sales tax, etc. will all work in your favor in establishing yourself as a legitimate business as opposed to just a hobbyist.
If you have a true business and simply sell through eBay, you file Schedule C and Schedule SE and calculate your income and self employment taxes as any sole proprietor does. Deductions for business expenses are allowed in that case.
2007-01-29 20:54:17 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You need to pay taxes on it. There is a line on the forms called miscellaneous income. This is where it will go. Although many people do not claim it and depending on how much you sell you may or may not be caught but the answer is that you are required to pay taxes on any income you make.
2007-01-29 19:53:18 · answer #2 · answered by Jim B 2 · 0⤊ 1⤋
If your just sold something as an individual [as a one-time sale] and your not a "business" then you should be ok. But, if you are making it a practice to sell items on ebay -- the IRS may consider your transactions equal to business deals. Under those circumstances, you would need to claim the money as revenue. For more info: go to www.irs.gov.
2007-01-29 20:12:07 · answer #3 · answered by innocent8864 1 · 0⤊ 0⤋
Yep, if you sell to someone in your state, you have to charge tax. If not, I don't think you do. I would work it into the price since most people get bummed with they see a tax added to the price of something. If you run it through paypal or a bank, then the IRS will know about it if they want to. So, yeah, it's probably just easier to keep a log and file it.
2007-01-29 19:54:56 · answer #4 · answered by fair_gwenofair 2 · 0⤊ 1⤋
If you sell something for a gain, then technically it's taxable income. If you just sell stuff you already own, and aren't trying to made a business of it, chances are you don't really have a gain - the gain would only be what you sell it for minus what you bought it for.
2007-01-30 03:22:31 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Have you tried Deviant art? you can sell prints on there. Ebay is good as well:D
2016-03-29 09:22:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋