Do you pay taxes on ebay sales?

[bandXtrb]

In the US, do you have to pay taxes on the items you sell -- or is it only if you make over a certain amount, or if you do ebay as a business? Excuse my ignorance.

 

[Hossenfeffer]

I believe you're supposed to charge tax on items you sell within the same state, but I'm not entirely certain.

 

[mithrandir2001]

Individuals don't. Businesses do. Of course, the question remains: who is an individual and who is a business?

Income taxes on my eBay sales? Pfft. The income I used to buy a given product was taxed, so I'm not paying tax again just to get back the depreciated cash value of that item. It's not really earned income, it's converting assets to cash.

 

[jadinolf]

In any event, businesses pay taxes on their net profit, not gross sales.

If you are an individual and make a profit, who's to know?

 

[Jarwa]

<< In any event, businesses pay taxes on their net profit, not gross sales.

If you are an individual and make a profit, who's to kow? >>

Exactly.

 

[Tiger]

Sooner or later.

 

[yakko]

If people actually followed the law on taxes then yes. Of course if people even knew the whole tax law more people would be fighting for a change instead of just whining about it every now and then.

 

[Freejack2]

Hmm far as I know for businesses they are supposed to charge sales tax on all items they sell to people in any state that they do business in. So If Joe's computers has stores in MA, and CT. Anyone who is buys from them in those states has to pay sales tax. Otherwise the business doesn't have to charge sales tax.
When a business buys anything, if they didn't pay sales tax when buying it, they have to pay sales tax on it later.
For individuals I'm not sure but I think they are supposed to pay sales tax on whatever they buy too but noone does.
I do think you have to list income made from ebay sales though no individual does. Though it may only be if you make a profit on the item. If you buy a computer in 2001 for $2000 and sell it in 2002 for $1500 I don't think that would be considered a profit.

Any accountants here?

 

[b0mbrman]

<< In any event, businesses pay taxes on their net profit, not gross sales.
If you are an individual and make a profit, who's to know? >>


That's the gyst!