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200 items / 20K question
 

Hello,

I know that we must file tax if both of this conditions are meet. But my question is how does Amazon count on the 20K mark?

1. Gross sale only.
2. Gross sale + Shipping
3. Net amount (the amount that deposit to your account after all the fee)

Thank you

What makes most sense will be the highest value. (Gross + Shipping) That way amazon gets to push the tax burden onto you.

Yea it's definitely gross sales , when you make a sale you receive money for the item plus shipping as far as the IRS is concerned that's one total number of revenue coming in and than your profit is your business on what your paying out for fees , shipping , product , this and that. The IRS counts the total revenue flow and than of course you have write offs for business expenses come tax time.

So as far as $20,000 mark every penny will count

What if you own 10 corporations, each on their own separate Amazon account, each making 19k. No need to file taxes then?

No, you are still obligated to report and pay your taxes.

Remember, taxes are only due on your PROFITS.

Payment processors report the total the customer paid to them for the item. You then work from that total, deducting the fees, cost of merchandise, etc. to figure out your profit.

I seriously suggest talking with a tax accountant or attorney if you are going to have 10 corporations (or LLC's). That gets complicated, reports and returns have to be prepared and filed. If you get it wrong, you can end up owing significant penalties.

There are no tax experts on the forum. This type of thing is best left to the professionals.

Good luck on your laun/dering scheme there simpleton. If you are truly this ignorant, your days are numbered.

People on this forum often get confused on this topic of limits. It has nothing to do with paying taxes, everyone must pay taxes and speak to a professional accountant about all your income .

When we talk limits on this forum it's in no way to evade taxes , we discuss the 200/$20000 because at this PACE it will cause ebay/Paypal to provide an added proof of identification , so what we are trying to avoid is Paypal not knowing our identity so that they can not link our accounts, it is in no way of hiding ourselves from the IRS. Everyone needs to speak to a CPA about this issue, the forum is to discuss stealth selling

To clarify my questions above. I do file my tax and just want to stay stealth with Ama/zon and spread the sale all over the accounts.

Thank you

I'm not judging anyone, but I'd like to remind everyone of something.

Remember Al Capone? He was a notorious Chicago gangster who owned the police and the politicians. He had many, many people killed, businesses blown up and ran the bootlegging operation in the Chicago area.

For years, law enforcement tried to stop him. But WHAT WAS IT that they were able to charge him with and send him to prison for? Was it murder? Distributing an illegal substance? Racketeering? NO - IT WAS TAX EVASION!

You might think you are being slick and pulling one over on the IRS and you may even get away with it. But if you are ever caught and they can see that it was intentional - and not just an error - then you are in for a world of trouble.

Be a patriot and pay your taxes. The government may not be perfect, but they have to pay for the military, police, fire, road construction, the court system, lighting the streets and highways, research and development, space exploration, etc. All of which have benefitted every citizen. Technology flows down from the military and NASA. And today's medical research grant just may turn into something that eventually saves your life. For all of the government infighting and problems, the system STILL works remarkably well.

This forum is not conduit for taxes.

Users are advised to take professional advice to ensure they meet their obligations to the IRS.

Avoid stirring the pot on this topic.


OP confirms he managed to extract his info.....


:peace: