Does the IRS patrol Ebay looking to collect income from sellers? Does anyone have any first or even secondhand knowledge of sellers being pursued by the IRS? Does Ebay cooperate in giving out this information? Exactly how much do you have to sell to be considered a “business?” I am assuming they would not be interested in the sale of a few old purses and Grandma’s old quilt. Or would they…..
2007-08-06 08:27:34 · 2 answers · asked by Ms_LaLa 2 in Business & Finance ➔ Small Business
Here in Canada you have to do $20 000 in business before you have to register as a business if I remember right, might be $30 000. They still expect you to pay taxes on income, but you pay them as regular personal taxes. It's considered a hobby at such low amounts.
The exception seems to be if you want to sell under a company name, in which case you have to register the business to sell under said name. If your name is Joe Morgan, you can sell under the name Joe Morgan. However if you want to sell under the name "Joe Morgan's purses" you have to register it. Though I'm sure you can get around this by merely stating "Joe Morgan" followed by the slogan "your purse salesman" or somesuch.
What you talk about is just a private sale, wouldn't be anything more than if you sold them at a garage sale. They wouldn't go after such a small amount because it'd cost more to prosecute than they'd ever get in actual taxes.
2007-08-06 08:41:01 · answer #1 · answered by Luis 6 · 0⤊ 0⤋
If you are buying things to resell it is a business so you treat it as any other business recording income and expenses on a schedule C paying self employment taxes if you earn over $400 per year. The IRS collects tax from all profitable businesses no matter what sales outlet you have.
2007-08-06 08:36:06 · answer #2 · answered by shipwreck 7 · 0⤊ 0⤋