paypal/ebay and irs reporting and refunds....

[user3657]

ive had quite a few new ebayers bid on my ipad 3 auctions. Overall I think Ive canceled and refunded 10 auctions. These numbers really inflated my income.

After you give a refund, is that sale still counted towards that 20k limit and/or is it still reported as a sale?

[ovidiu]

It still counts, sorry. Refunds are tallied up in taxes after gross income is entered.

[irdogg]

when doing taxes id consult a pro instead of forum advise

[rsot]

user3657 is not asking about taxes - just the total sales.

[ovidiu]

If I remember correctly, the 20k/200 figures are for gross sales. So refunds still count as as a sale as far as the reporting requirements go.

[user3657]

Originally Posted by ovidiu

If I remember correctly, the 20k/200 figures are for gross sales. So refunds still count as as a sale as far as the reporting requirements go.

Damnit! Ive refunded a bunch of Ipad auctions at 700$. If refunds are still counted in total sales, I bet im close to 10k on a two month old PP account.

Should I start a new one? This is a sealth account so I dont want to provide SS.

[KingRay]

Part of not knowing what you are doing. You should learn and make sure you know what you are doing before just tossing items online and selling them. Those are the most basic aspects of doing business and you arent up on even those small issues?

Sold 10 ipad 3's in a month, huh.

All those refunds and you are still doing great??

[Sandy D]

You had better get some new account going because your record is not doing so well.

Having to refund that many is surely not going to look good if someone looks into your account soon.