Ebay and Taxes

[romansports]

I knwo alot of people who sell cards on Ebay and yahoo auctions. Some swear they must pay taxes some swear they dont. Does anyone have input on the topic? :noidea

[redsoxfan1291]

Some people don't (I forgot the word) "announce" they're sales/profits to the tax places, w/e, some people do. I'm 14 so I don't know much since I don't think I'd have to pay taxes either way on them but who knows... I don't and I sell around $500 stuff on eBay per month.

[tyberesk]

Well that money that you bring in....is income, so it should be taxed i guess:confused:

[romansports]

I get confused with the fact that.. say I buy a case of Bowman looking for a morales auto. I dont get it so I decide to try and make my money back. Im going to assume Im not making a profit so is that income?

:radio

[tyberesk]

I dont know technically/legally, but it sounds like it would have to be taxed.

[Utter Chaos]

I get confused with the fact that.. say I buy a case of Bowman looking for a morales auto. I dont get it so I decide to try and make my money back. Im going to assume Im not making a profit so is that income?

:radioProfit = Sales - Expenditures. If you sold the Bowmans for more than you paid for them then you made a profit. Of course Expenditures could include postage, shipping supplies, gas to the post office, eBay fees, your computer, etc.

[romansports]

SO would a person have to have a registered business or just tell his accountant he turned a profit. This is all so confusing

[redsoxfan1291]

You only get caught or need to start taxing when you're in the 20,000+ feedback, it's nothing for sportscards dealers other then ones of caliber like mr.mem should be worried about.

[TheJourneyman]

Talk to a Tax Pro.
Don't take someone's advice or word on a internet forum. I have seen a lot of bad advice given on taxes in the past. Yeah it may not come back to haunt you yet but it will eventually catch up to you. I am no tax pro but I already see things in this threat I don't agree with.

[Mike D.]

Talk to a Tax Pro.

That's the best advice.

That being said:

- Yes, you're supposed to pay taxes on stuff you sell on ebay, just like you're supposed to pay taxes on the proceeds from a yard sale. Few people report it, though..and it's tough for the IRS to track, unless it's a particularly large amount.

- If you do buying and selling regularly, you can claim expenses. Basically, you fill out the same form a non-incorporated self-employed person would fill out (Schedule C?)

[Captain Cold Nose]

Talk to a Tax Pro.
Don't take someone's advice or word on a internet forum. I have seen a lot of bad advice given on taxes in the past. Yeah it may not come back to haunt you yet but it will eventually catch up to you. I am no tax pro but I already see things in this threat I don't agree with.
Never mind the fact, no offense, redsoxfan1291 is 14 and has not even had to pay taxes. But that's the sort of question that, to be safe, is asked to someone who is familiar with the tax laws.
It's safest to assume all income is taxable, like tyberesk was saying. Where you go from there depends on how creative your tax preparer is.

[redsoxfan1291]

I was giving that advice because I happen to know one guy who sells 200+ items a week on Yahoo Auctions, and about 20 who sell 50+ items a week and none pay taxes. I even know someone with an eBay store with close to 1000 items up and he doesn't pay taxes. But whatever, pay taxes if you want.

[Captain Cold Nose]

I was giving that advice because I happen to know one guy who sells 200+ items a week on Yahoo Auctions, and about 20 who sell 50+ items a week and none pay taxes. I even know someone with an eBay store with close to 1000 items up and he doesn't pay taxes. But whatever, pay taxes if you want.
Sure, whatever. It's only the law. :rolleyes: