View Single Post
  #3 (permalink)  
Old 10-25-2006, 09:41 AM
poundwise's Avatar
poundwise poundwise is online now
Debt Freedom Fighter
 
Join Date: May 2006
Posts: 1,838

Points: 12920.20
Donate
Default Re: Selling on eBay - 10 Steps to Success


I would add to the above list: Keep good records

Income (profit) from an eBay business (side-business or otherwise) is taxable, but its not necessarily simple. For instance, to determine profit you have to keep up with costs. Expenses such as eBay fees, etc. are deductible. And so on...

Of course, the argument can be made that most people don't do this properly, however, that doesn't mean it shouldn't be done. Also, the IRS has specifically stated that they are going to target eBay selling in the future because they know it is going unreported by many.

(Note: If you sell an few personal items through eBay, that likely doesn't constitute a business. You probably don't make a profit and you don't meet the other marks of a 'business' so don't worry. However, if you are buying and selling, making a profit, etc., then you have a business. Fortunately, operating as a business has some benefits.)


Here are some resources:

www.ezinearticles.com

TurboTax: Tax Center for eBay...

MSNBC: Taxes... eBay

CopyrightCopyright Jeffrey Strain and SavingAdvice.com 2008, All Rights Reserved.
If you find anything inaccurate in this article, please email us.

Also be sure to read our disclaimer.

__________________

"Look at this way: Think of how stupid the average person is; and then
realize that half the people are stupider than that." ~ George Carlin

Reply With Quote