ebay and filing taxes: how does one do it, and to our advantage or disadvantage?

[phatj]

hi,

ive have a significant amount of sales on ebay in the past year. i want to know if I have to report these earnings when i file taxes.

ive sold a lot, but all the stuff that I've sold, I've paid sales tax on (i've paid well over $1500 in sales tax), and my profit margins are not HUGE. just want to know if anyone has done this before and what the results are. and how to report it.

 

[Yossarian]

legally, you have to report the profits.

 

[alent1234]

pay taxes on the profits and write off costs of doing business

 

[DrPizza]

This is a question for the annual tax time thread...

But, I believe you MUST report profits as income. However, since you are operating it as a small business for yourself, I think you can deduct a portion of your ISP bill, computer, etc. - a relatively small portion if that's not what a majority of your computer use was for. Definitely ask someone more knowledgeable though...

 

[kranky]

Yes, you have to report it as income. But you get to deduct what you paid for the items, and the expenses of selling them. Like DrPizza suggested, ask in the stickied tax thread for a definitive answer.

Anyone with a significant presence on ebay would be wise to report their income because ebay won't keep your information private if an official asks.