Do you pay taxes on what you earn? How do you go about figuring out how much to pay? I think I'm selling enough to the point where I need to start paying taxes on it
For you ebay sellers..
- Thread starter CrazyDe1
- Start date
Originally posted by: edro13
I haven't sold anything on the internet.... I have only traded stuff for green and black paper...
Right, sounds like you have never delt with the IRS.
the OP is probably ok since you don't have to pay taxes on stuff that goes out of state, but it is a valid concern since there really isn't a statute of limitations on taxes, if they decide to hit you up for the dough they will have no remorse about including stuff from all the years past.
I wouldnt worry about it for ebay though, unless you feel you could be considered a business from it.
Well I buy my medical insurance through ebay...so I'm moving at least 1k worth of stuff a month. Usually bring in 1k-2k a month in profit from ebay. I guess this is the same as any internet company though...you only have to pay taxes in your own state. My parents just brought up a good point about if I got audited and they saw large amounts of money moving in and out of my bank account...
No.
But I have often wondered about this. Do you legally have to report it if it's over a certain ammount?
It's kinda almost under the table, like having a garage sale.. or something.
But I have often wondered about this. Do you legally have to report it if it's over a certain ammount?
It's kinda almost under the table, like having a garage sale.. or something.
AgaBoogaBoo
Lifer
- Feb 16, 2003
- 26,108
- 5
- 81
I think some states do upto $400 profit per year without taxes. Not sure though, almost as good as a guess. Don't count on this!
if you are right then consider the word "profit"
Profit = revenues - expenses <--- expenses could be anything from gas and shipping to your time (which for all of us is infinite)
Originally posted by: RIGorous1
if you are right then consider the word "profit"
Profit = revenues - expenses <--- expenses could be anything from gas and shipping to your time (which for all of us is infinite)
ummmm, for a sole propeitorship, there is no charge for your time..........read up on basic accounting here. what you charge for your time is called profit...
Originally posted by: CrazyDe1
Do you pay taxes on what you earn? How do you go about figuring out how much to pay? I think I'm selling enough to the point where I need to start paying taxes on it
if you are selling in your state, you need to get a sales tax permit and register with the state and file monthly/quarterly/annual statements with them depending on the amount of sales tax involved. that is the legal way and the IRS will soon find out and send out a notice of forfeiture of your personal residence unless you give them everything down to your boxers...(j/k
about that last part, they wont take your boxers)Originally posted by: kermalou
Originally posted by: RIGorous1
if you are right then consider the word "profit"
Profit = revenues - expenses <--- expenses could be anything from gas and shipping to your time (which for all of us is infinite)
ummmm, for a sole propeitorship, there is no charge for your time..........read up on basic accounting here. what you charge for your time is called profit...
You are right, however you could still vouch for your expenses with other "costs"
nevertheless the IRS doesn't audit joe blows like you and me who are not reporting $400... They are after those people who are buying new homes and cars that can't technically afford it.
Originally posted by: kermalou
Originally posted by: CrazyDe1
Do you pay taxes on what you earn? How do you go about figuring out how much to pay? I think I'm selling enough to the point where I need to start paying taxes on it
if you are selling in your state, you need to get a sales tax permit and register with the state and file monthly/quarterly/annual statements with them depending on the amount of sales tax involved. that is the legal way and the IRS will soon find out and send out a notice of forfeiture of your personal residence unless you give them everything down to your boxers...(j/k
What if you live in a state with no sales tax?
Originally posted by: Eli
Originally posted by: kermalou
Originally posted by: CrazyDe1
Do you pay taxes on what you earn? How do you go about figuring out how much to pay? I think I'm selling enough to the point where I need to start paying taxes on it
if you are selling in your state, you need to get a sales tax permit and register with the state and file monthly/quarterly/annual statements with them depending on the amount of sales tax involved. that is the legal way and the IRS will soon find out and send out a notice of forfeiture of your personal residence unless you give them everything down to your boxers...(j/k
What if you live in a state with no sales tax?
then you have to pay double your income..........smart aleck
no sales tax = live in a state that needs all the help that they can get.
Originally posted by: Eli
Originally posted by: kermalou
Originally posted by: CrazyDe1
Do you pay taxes on what you earn? How do you go about figuring out how much to pay? I think I'm selling enough to the point where I need to start paying taxes on it
if you are selling in your state, you need to get a sales tax permit and register with the state and file monthly/quarterly/annual statements with them depending on the amount of sales tax involved. that is the legal way and the IRS will soon find out and send out a notice of forfeiture of your personal residence unless you give them everything down to your boxers...(j/k
What if you live in a state with no sales tax?
bastard heh
The more I look at it the more I'm going to have to report this and I'm not looking forward to it because I don't keep track of what I buy things for and what my net profit margin is. I only know in my head about what Im making.
What about roommate revenue? Do people report that? Like if you're renting your house to a friend?
Nah. We have other taxes that make up for it.Originally posted by: kermalou
Originally posted by: Eli
Originally posted by: kermalou
Originally posted by: CrazyDe1
Do you pay taxes on what you earn? How do you go about figuring out how much to pay? I think I'm selling enough to the point where I need to start paying taxes on it
if you are selling in your state, you need to get a sales tax permit and register with the state and file monthly/quarterly/annual statements with them depending on the amount of sales tax involved. that is the legal way and the IRS will soon find out and send out a notice of forfeiture of your personal residence unless you give them everything down to your boxers...(j/k
What if you live in a state with no sales tax?
then you have to pay double your income..........smart aleck
no sales tax = live in a state that needs all the help that they can get.
I'm being serious here. So far there has just been speculation. Does anyone really know how this works?
It shouldn't matter unless you're making over like 10k/year anyway. Under a certain ammount isn't taxable - any tax they take you just get back at tax return time anyway.
I only make like an average of ~150 - 200$/mo on eBay anyway, so I probably don't apply. I would love to get into it more.. It's hard to find things to sell, though.Originally posted by: CrazyDe1
Originally posted by: Eli
Originally posted by: kermalou
Originally posted by: CrazyDe1
Do you pay taxes on what you earn? How do you go about figuring out how much to pay? I think I'm selling enough to the point where I need to start paying taxes on it
if you are selling in your state, you need to get a sales tax permit and register with the state and file monthly/quarterly/annual statements with them depending on the amount of sales tax involved. that is the legal way and the IRS will soon find out and send out a notice of forfeiture of your personal residence unless you give them everything down to your boxers...(j/k
What if you live in a state with no sales tax?
bastard heh
The more I look at it the more I'm going to have to report this and I'm not looking forward to it because I don't keep track of what I buy things for and what my net profit margin is. I only know in my head about what Im making.
What about roommate revenue? Do people report that? Like if you're renting your house to a friend?
If you're renting a room in your house out, I don't think you have to report it.. It's not profit, it goes towards your rent. I've never heard anyone report it, anyway.
However, if you're renting your whole house out.. I'm sure there's some way to report that.
I don't know though.
in a whisper, there is no such thing as roomate revenue.........
now sales tax is different than income tax my friend, they are two totally different taxes you have to pay to BIG BROTHER
sales tax - the amount of tax you collect on net sales in your state payable to the county you live in
income tax - the amount of tax that you pay on your net income, taxable to both the federal gov't (IRS) and your state
now sales tax is different than income tax my friend, they are two totally different taxes you have to pay to BIG BROTHER
sales tax - the amount of tax you collect on net sales in your state payable to the county you live in
income tax - the amount of tax that you pay on your net income, taxable to both the federal gov't (IRS) and your state
AAjax
Diamond Member
- Feb 17, 2001
- 3,798
- 0
- 0
Yes I declare all proffits off of ebay, why?
Well Im no power seller but some $$$ now saves allot of pain later. If your a power seller Im allmost shocked you had to ask. If your looking for absolution for not paying from ATOT Im sure you will get it, however I dont think that the IRS is going to say "well you asked ATOT and they said dont pay?.... welll why didnt you just say so"
Every dollar you receive is subject to federal income tax if your annual income - from whatever sources derived - exceeds the exempted limit. Your state may have no exempted limit and you may be required to file state tax returns no matter how little you made.
That's why you keep records and file business tax returns so that you can claim the income as business revenue, then offset that revenue by the legitimate costs/expenses of doing business, which you cannot do if you're filing simple personal income tax returns.
Otherwise, if you sell a video card for $100 that cost you $90, you are required to claim that $100 as income, all of which may be subject to tax, not just the amount that equals $100 minus $90.
I suspect many Ebay sellers are neither reporting revenue nor income from their Ebay transactions, which is positively foolish because there is an audit trail a mile long proving these transactions took place and the IRS will have no trouble accessing it.
The IRS can only audit a small percentage of them, but those who are audited are going to get screwed so hard by the IRS they will wish they had never been born and it will be 100% their own fault for failing to understand their obligations as a tax payer.
Given the number of Ebay sellers, the odds are fair-to-good that you won't be audited, how's your luck?
:Q
Hmm.. That is interesting though. If there are so many tax evasionists using eBay to make lots of money, wouldn't the government be very interested?
What you're saying sucks, though.. if it is indeed true. I sell realitivly high dollar things(~800) on eBay, but... I make a realitivly small profit(~75-100)...
Does anyone know of anybody that has been busted for tax evasion using eBay?
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