Showing eBay income on tax returns ?

EBAYPLAYA · #1 06-13-2009

Hey There,
Should we keep all the records so that we can file eBay income details the next tax season ?

What will happen if I don't show anything ?
Has anybody showed eBay on their taxes this year ?

any help would be appreciated.

thanks

BooMer · #2 06-13-2009

I haven't showed/filed taxes for ebay ever. Unless you are a Big seller and you have employees that you report to the IRS then that is the only reason I think you should file taxes.

Do you report that dollar you found walking down the street to the IRS? Or the money gift that someone gave you for your birthday? If so then file your taxes.

If you are a small time seller then I wouldn't worry about reporting your Ebay Income. Ebay Pays a lot in taxes already.

I read somewhere that starting Mid 2010 Paypal/eBay will be required to report earnings of sellers that make over a certain amount to the IRS. This will lead to you having to provide SS#. So either way you will be required if you match the criteria.

BooMer

gurusgrafx · #3 06-13-2009

I file mine only because its my only income and with my kids I get earned income credits so its like free money just for filing.

**SaiJin** · #4 06-13-2009

here's 2 links:

What Every Merchant Should Know about New IRS Reporting Requirements

https://www.thepaypalblog.com/2008/0...ts-become-law/

So what do you guys think? No way around being stealth anymore?

highwhey · #5 06-13-2009

Quote:

Originally Posted by BooMer

I haven't showed/filed taxes for ebay ever. Unless you are a Big seller and you have employees that you report to the IRS then that is the only reason I think you should file taxes.

Do you report that dollar you found walking down the street to the IRS? Or the money gift that someone gave you for your birthday? If so then file your taxes.

If you are a small time seller then I wouldn't worry about reporting your Ebay Income. Ebay Pays a lot in taxes already.

I read somewhere that starting Mid 2010 Paypal/eBay will be required to report earnings of sellers that make over a certain amount to the IRS. This will lead to you having to provide SS#. So either way you will be required if you match the criteria.

BooMer

Wow this will definitely stink. I do not want to have to give my SS# to ebay.

Jonas · #6 06-13-2009

If you make income other than eBay and you don't make a lot on eBay, then you could get away with it. But if eBay is your only income or you make a lot on it, then you may want to file.

If you don't pay taxes for a long time, it's not just a fine, but it could be jail time so be careful.

It's important to keep records of everything when you file, every bit of packing tape bought, every prepaid credit card for eBay you keep the receipts and try not to pay in cash because receipts fade away after a couple years so you have an electronic purchase record, too, then you keep records of each card before you throw it away including notes of all its numbers and every purchase. Get an estimate of how often you go to the post office, well all that kind of thing.

**SaiJin** · #7 06-13-2009

but that also means if eBay suspends the account, you can't get back even with stealth accounts.

#8 06-13-2009

Oh? And does it also mean that since you could plausibly claim that you kept your revenue proofs of sales in the ebay message section of your own login, that you can't declare any income due to being locked out of your records, thus making ebay a federal offender doubly?

**SaiJin** · #9 06-13-2009

Not sure what you are saying but this is what I'm thinking:

If for any reason whatsoever eBay suspends you in 2012,
I don't think you can come back with another stealth account.
Because you'd need to provide SSN and they'll know who you are.

But also, wouldn't putting an SSN in a stealth account contradicts everything because
then the info of the SSN is different than the info of the stealth account?

Second of all, another thing that comes to mind is, ... how the heck is IRS going to chase you down if you use a stealth account? Since the name and info on all are not real?

I manually file tax on my own manually, but if PP and eBay is going to be involved...
wouldn't that make it impossible to keep a stealth account?

Hmm... I hope I make sense, but if I don't... it's because I'm rather confused right now.

#10 06-13-2009

Thing is... and it has been argued over by legal experts... monies made by online sales and flea markets (as well as other venues) do not constitute a profit. It qualifies as fair market value and thus not subject to tax. Good luck winning, but if you have revenue small enough, any actions might cease pretty quick if the cost is greater for them than the gain would be.

JohnnyBoy · #11 06-13-2009

Just relax and enjoy your current sales, the law doesn't kick in till 2012.

#12 06-13-2009

Agreed. Discussing now is mainly speculation. They will rehash and amend things on the gov't end several times between now and later. At this time, the issues are pretty much academic. Some portions will predictably remain as already planned, but some things will be plastic as well. Changes in the expected gov't policy may bring changes in ebay/pp by necessity.

I'm not saying do nothing until the last minute. Now is the time to play what-if. But no hurry.

thakid212 · #13 06-13-2009

So let me get this right we gotta pay ebay fees + PayPal Fees + Shipping + A new tax awww that sucks

well time to sell on Craigslist they can't put a tax on cash

JamesYaBaoy · #14 06-14-2009

Hmmm....

I am I the only one that read that it applies to payment proccesors.

Meaning if you dont take PayPal..everything else will all be the same

Jonas · #15 06-14-2009

Quote:

Originally Posted by vicvelcro

Oh? And does it also mean that since you could plausibly claim that you kept your revenue proofs of sales in the ebay message section of your own login, that you can't declare any income due to being locked out of your records, thus making ebay a federal offender doubly?

I declare income when it comes into one of my bank accounts, not when it's stuck in paypal or anything else.

mmac900 · #16 06-14-2009

As I said before, they won't ask everyone for a SSN, only people that sell more then like $20,000 a year. And if you are selling on 5-10 accounts, you can always just stay under that limit and you are good.

**SaiJin** · #17 06-14-2009

But there are catagories that require you to take PP.

Quote:

Originally Posted by JamesYaBaoy

Hmmm....

I am I the only one that read that it applies to payment proccesors.

Meaning if you dont take PayPal..everything else will all be the same

#18 06-14-2009

Ok, and you will only have to be concerned if you do 'X' amount of business in PP or more. If you stay below 'X', you should be able to continue the same as you do now.

If that changes, there are potential ways of adjusting to anything new.

If you intend to do all of your business under 1 ebay and 1 pp and your volume is high, then you have a concern. Not a worry. Just a concern.

Easiest 'out' is to spread your monies around.

gurusgrafx · #19 06-14-2009

^^^^^^^^very true. only a couple extra steps to resolve the issue.

#20 06-14-2009

You can accept pp for those things. Stay under 'X' amount and not a problem. Only a problem if you go over 'X' amount and problem has solutions.

GreenBean · #21 06-14-2009

Some wise man said Only two things in life you can be sure of, taxation and death. Be ready for changes.

gurusgrafx · #22 06-14-2009

yeah but you can cheat taxes... haven't met anyone that cheated death yet tho...