2007-06-11 10:26:22 · 5 answers · asked by ingrid 1 in Business & Finance ➔ Taxes ➔ United States
Your first two answers pretty much cover it:
State Sales Tax:
Have to check your state rules, probably not likely that you would have to collect and pay, unless you are in the business of selling items (in which case, you'll need to check).
State / Federal Income Tax:
I can't really say for state, but I wouldn't think it would be too much different from Federal. Generally, you have to report as income the difference between what you received for the item and what the item cost you (cost basis - don't forget to include your costs of listing the item, ebay commissions, etc.). Whether or not you ultimately pay tax of course is based on your total tax situation.
2007-06-11 10:43:37 · answer #1 · answered by Chris 2 · 2⤊ 0⤋
The other answers are correct except you didn't state the reason for selling items on ebay.
1. Are you running a business? If so, then you would pay taxes on the total profits of the business.
2. Are you just selling stuff? If so, then you would claim the profit as a capital gain on Schedule D.
2007-06-11 16:01:45 · answer #2 · answered by Steve 6 · 0⤊ 0⤋
Maybe.
If you are just selling old stuff laying around the house for less than what you paid for them, then NO, there is no tax.
If you are selling anything at a profit, then YES, the profit would be subject to income tax.
2007-06-11 10:30:26 · answer #3 · answered by Wayne Z 7 · 3⤊ 0⤋
You will only have to pay tax on anything sold if it is new and you sell it to the person whom is residing in the same state. Actually, they will have to pay the sales tax. You will just have to report it to the state.
2007-06-11 10:34:54 · answer #4 · answered by Twisted Maggie 6 · 0⤊ 1⤋
yes, whatever you earn as profit u have to pay the taxes
2007-06-15 03:45:34 · answer #5 · answered by shailesh71us 1 · 0⤊ 0⤋