When to worry about taxes?

[Drakkon]

Do you need to pay taxes on ebay and garage sales when you sell an item worth more than a certain ammount? I recently have been selling items on ebay that were given to me by my company and a couple of them were rather large sales (2 over $1K, one over $5K) and it looks like this weekend I'll sell even more when i have a garage sale of a lot of computers and cubicle furniture - already 1 person today came by and promised $1500 worth of stuff. I did all this and just today it was mentioned to me that i might need to pay taxes on these sales over a certain ammount. I was under the understanding so long as I'm not operating as a business its okay and i dont need to.
CPA...anybody? help!

 

[Flammable]

just hide the money under fridge...

 

[FoBoT]

if you are making a profit, that IS a business, that is the definition of a business vs. a hobby
you have to report that as income
if you get caught, Bubba in FPMITAP will make you wish you had reported it

 

[imported_weadjust]

You owe taxes on income. Thats why they call it income tax. Would I report it? No

How would the IRS know what you paid for the stuff. You could be selling at a loss. If you get caught the IRS will make you pay taxes, interest, and penalties. They aren't going to send you to prison.

Chance of getting caught. Slim to none.

 

[allisolm]

4th Annual Tax Thread - 2006

 

[fisheerman]

Worry about the taxes after the audit

 

[pontifex]

don't forget to pay the tax on items bought online too!

 

[EagleKeeper]

Originally posted by: pontifex
don't forget to pay the tax on items bought online too!

State Tax on those, not federal