ebay question about tax....

[PremiumG]

if I win an auction for 1 penny or something really low, and lets say the shipping is like $5, I dont have to pay tax on the shipping and handling, am I right?

auction says I need to pay tax if i live in cali, but you can't tax for shipping and handling i dont think.

 

[NutBucket]

You're not suppose to but I notice most of them time ppl collect tax on shipping anyway.

 

[markgm]

Originally posted by: NutBucket
You're not suppose to but I notice most of them time ppl collect tax on shipping anyway.

I'd imagine because most people keep the tax for themselves to cover fees.

 

[KarenMarie]

If someone is charging tax, you have the right to ask for their tax ID. I wondered about this once I saw that there are a lot of private sellers that were adding tax. I contacted the IRS to ask, and they said that in order to charge tax, the seller must have a tax ID number. The seller must make this number available to any/all buyers.

As for as charging tax on shipping... i am not sure... does the post office charge tax? I dont remember.

 

[LS20]

ive never paid, or collected, tax on my numerous ebay transactions.... axe for ID like advised above

 

[thelanx]

What about tax for things you sell? Say you sold some stuff on ebay, do you have to pay tax on what you sold? Also, do you count total value sold or the profit you made?

 

[markgm]

Originally posted by: thelanx
What about tax for things you sell? Say you sold some stuff on ebay, do you have to pay tax on what you sold? Also, do you count total value sold or the profit you made?

I think that falls under the same "technically" as having a garage sale. After taking a few law and accounting classes, there are a hundred ways to answer (or figure out) the last question.

 

[jadinolf]

Originally posted by: thelanx
What about tax for things you sell? Say you sold some stuff on ebay, do you have to pay tax on what you sold? Also, do you count total value sold or the profit you made?

I'm not a business.

Don't charge it.

/end post

 

[KarenMarie]

Originally posted by: thelanx
What about tax for things you sell? Say you sold some stuff on ebay, do you have to pay tax on what you sold? Also, do you count total value sold or the profit you made?

I asked the IRS about that... all they told me was that if tax was collected on it, it had to be reported and paid to the government. I did not think to ask whether or not they were required to charge tax on stuff like that.

But... there is a place in Nashville that sells nothing buy used CDs, DVDs and albums and stuff like that. Everything is used. they charge tax all on the used items they sell. Which made me wonder, at the time, cause tax was already paid for this stuff when it was originally purchased.

 

[NutBucket]

Originally posted by: KarenMarie

Originally posted by: thelanx
What about tax for things you sell? Say you sold some stuff on ebay, do you have to pay tax on what you sold? Also, do you count total value sold or the profit you made?

I asked the IRS about that... all they told me was that if tax was collected on it, it had to be reported and paid to the government. I did not think to ask whether or not they were required to charge tax on stuff like that.

But... there is a place in Nashville that sells nothing buy used CDs, DVDs and albums and stuff like that. Everything is used. they charge tax all on the used items they sell. Which made me wonder, at the time, cause tax was already paid for this stuff when it was originally purchased.

But that's a business so they would have to collect tax. The loophole is you don't run a business.

 

[SVT Cobra]

ask for the tax ID if they are charging...they are beeing greedy n00bs