I've been thinking of selling a few things on sites like etsy.com and ebay.com. Not just one or two things here and there, but like keeping a store open. Now, I know that if your income exceeds a certain amount your are supposed to mark that as income on your taxes. How do I find out how much this is, and what to do if I reach past that point? I don't think I will, but I want to make sure I am understand every possibility before I take my first step.
Thanks in advance!
2007-08-01 04:58:12 · 3 answers · asked by Banshee Fay 2 in Business & Finance ➔ Taxes ➔ United States
how much $$$'s are you thinking of selling on these sites? If it's small enough, and it's occasional income, it's too small for the irs to bother with. Normally you should report all income to the irs even it's $1, but if you are just doing occasional sales, like a couple of times a year, that should be fine.
2007-08-01 05:17:54 · answer #1 · answered by Anonymous · 0⤊ 1⤋
If you are already required to file a tax return then all of it is taxable at the federal level (minus the cost of the sales and the original cost of the merchandise). Any profit in excess of $400 is also subject to the SE (self-employment) tax. If you're just selling some old stuff from your closet to clean house chances are that you're not going to have a profit due to the original cost generally being higher than used sales price. This would not be reportable on the tax return since it would be considered a personal loss.
2007-08-01 05:45:27 · answer #2 · answered by ignernt 3 · 0⤊ 0⤋
If your only income is the income from this business, you are required to file a tax return and pay any tax due if your income exceeds $400 in any tax year. If this income is in addition to other taxable income that you have, all of it is taxable.
2007-08-01 05:31:36 · answer #3 · answered by Bostonian In MO 7 · 3⤊ 0⤋