Do you need to declare taxes when you sell something on ebay??

[bodybump]

Im just curious guys do you have to declare tax if you sell something on ebay or if you sell some watches anywhere??

[folexhater]

If you are charging a sales tax then it would be a yes I say!

[GrandDaddy]

Originally Posted by bodybump

Im just curious guys do you have to declare tax if you sell something on ebay or if you sell some watches anywhere??

???

[coddger]

If you are selling your own personal property that you have already bought, paid for and used, you do NOT need to pay taxes on what you sell it for unless you sell it for a profit (like for example, you are selling something that is highly collectible). If you're buying items specifically for resale at a profit on eBay, then you need to pay taxes on the PROFIT that you made-- the price you sold it for, MINUS the price that you actually paid. Any income derived from such sales is subject to income tax. Your "income" would be the difference between what you paid for the item and the price that you sold the item. You will, however, be able to deduct actual expenses if you file a Schedule C with your return. IRS is now requiring PayPal to send out 1099s for accounts that receive income over $600 in a year, so if you have sales via PayPal that exceed that minimum amount, it will be reported to the IRS, so your tax returns need to include that income. Or you can simply roll the dice!

[2careless]

Another reason why paypal sucks

[Omega_Precision]

Originally Posted by 2careless

Another reason why paypal sucks

I agree.

[bodybump]

Originally Posted by GrandDaddy

???

hahahahaha fafa do you need me to translate it in Tagalog?

[bodybump]

so anything used that you sold on eBay even if you sold the item in the same state I don't have to declare it?

[bodybump]

Originally Posted by coddger

If you are selling your own personal property that you have already bought, paid for and used, you do NOT need to pay taxes on what you sell it for unless you sell it for a profit (like for example, you are selling something that is highly collectible). If you're buying items specifically for resale at a profit on eBay, then you need to pay taxes on the PROFIT that you made-- the price you sold it for, MINUS the price that you actually paid. Any income derived from such sales is subject to income tax. Your "income" would be the difference between what you paid for the item and the price that you sold the item. You will, however, be able to deduct actual expenses if you file a Schedule C with your return. IRS is now requiring PayPal to send out 1099s for accounts that receive income over $600 in a year, so if you have sales via PayPal that exceed that minimum amount, it will be reported to the IRS, so your tax returns need to include that income. Or you can simply roll the dice!

So I have to wait for the form from Paypal? And how would the IRS know if the item was bought used and sold for a profit?

[redshirt1957]

Nothing is simple anymore. There are two competing ideas when it comes to 1099s. First, is this a business or hobby and second did you receive a 1099 on these sales and thus how do you report a casual sell. If a hobby than losses are not deductable via a Schedule C. A schedule C is the form where you report income and expenses for self-employment. If it is a business you can deduct losses, but if you have losses for three consecutive years, the IRS can declare your business is really a hobby. Not the tricky part. Since paypal is sending out 1099s you have to report the gross earnings, even if this is a hobby. But, remember if it is a hobby you cannot show a loss. What if you do not report this income via a schedule c on your 1040 return? The IRS will increase your AGI for the gross amount showm on the 1099 and you will owe; tax, self-employment tax, interest, and possible penalties. What a pain just to sell a few old items. If the amount is small just show expenses to cover the gross income. Now, lets say you sell a car or such and receive a 1099. The amount is large enough to raise the interest of the IRS, so beware. They are looking for all the tax dollars they can find.

Please consult a professional as I could write a book to fully explain. Next week I will discuss Alt Min taxes.

[bodybump]

Originally Posted by redshirt1957

Nothing is simple anymore. There are two competing ideas when it comes to 1099s. First, is this a business or hobby and second did you receive a 1099 on these sales and thus how do you report a casual sell. If a hobby than losses are not deductable via a Schedule C. A schedule C is the form where you report income and expenses for self-employment. If it is a business you can deduct losses, but if you have losses for three consecutive years, the IRS can declare your business is really a hobby. Not the tricky part. Since paypal is sending out 1099s you have to report the gross earnings, even if this is a hobby. But, remember if it is a hobby you cannot show a loss. What if you do not report this income via a schedule c on your 1040 return? The IRS will increase your AGI for the gross amount showm on the 1099 and you will owe; tax, self-employment tax, interest, and possible penalties. What a pain just to sell a few old items. If the amount is small just show expenses to cover the gross income. Now, lets say you sell a car or such and receive a 1099. The amount is large enough to raise the interest of the IRS, so beware. They are looking for all the tax dollars they can find.

Please consult a professional as I could write a book to fully explain. Next week I will discuss Alt Min taxes.

Thanks Bubba Joe.....its more of a hobby..but i sell a lot of used item from collections...paypal has never sent me any form..YET...but i have been sellling a lot of used items on ebay...some of them wire transfer and didnt use paypal....

[GrandDaddy]

Originally Posted by bodybump

hahahahaha fafa do you need me to translate it in Tagalog?

You talk like Erap, maybe it's better kung tagalugin mo na lang. Are you related to him by any chance?

[bodybump]

Originally Posted by GrandDaddy

You talk like Erap, maybe it's better kung tagalugin mo na lang. Are you related to him by any chance?

Hahahaha you have a hard time understanding it in English much more in Tagalog...

[GMTJOHNNY]

You lost me on the 1099 part.
If i sell a bicycle that I had purchased years ago for $2000 and sell for $800 (LOSS) I will be getting a 1099 form?
I am not making any money on this one-time sale and I am losing money.
No way am I paying the IRS on something like that.

Any comments?

[Launch Mini]

If your are Canadian, and considered a Power Seller ( I beleive that is the term they are using), Ebay , at this time, is required to report your Gross Sales to the Canada Revenue Agency ( our version of the IRS). Same as what Joe said.
Report the Gross & your expenses or you could be in for a suprise.
Also sales tax comes into play, depending on your state law & the server location.
Big brother is watching you

[GrandDaddy]

Originally Posted by bodybump

Hahahaha you have a hard time understanding it in English much more in Tagalog...

I understand English and Tagalog perfectly. It's your carabao ingrish that confuses me sometimes.

[bodybump]

Originally Posted by GrandDaddy

I understand English and Tagalog perfectly. It's your carabao ingrish that confuses me sometimes.

Papakuram kita!!!!

[Bisquitlips]

Originally Posted by bodybump

Im just curious guys do you have to declare tax if you sell something on ebay or if you sell some watches anywhere??

Oscar,

The answer is NO!

That is unless you get caught and then the answer is YES!

Don't answer questions that no one is asking! This is a rule of life!

Duck! Head down! The IRS monitors this forum!

[Hatchet]

If you speed, do you call the police when you get home and ask them how much you owe?

[bodybump]

Originally Posted by Bisquitlips

Oscar,

The answer is NO!

That is unless you get caught and then the answer is YES!

Don't answer questions that no one is asking! This is a rule of life!

Duck! Head down! The IRS monitors this forum!

are they monitoring this forum??? I dint sell anything ..i dint sell anything..i didnt sell anything...got to go guys...

[2careless]

Same for Australia. If a seller has sold >= A$50k p.a., the transaction details are forwarded to the Australian Tax Office.
http://apcmag.com/tax_office_to_crac...bay_cheats.htm

Apart from income tax, GST is also a concern.

[Leighton]

Originally Posted by redshirt1957

Nothing is simple anymore. There are two competing ideas when it comes to 1099s. First, is this a business or hobby and second did you receive a 1099 on these sales and thus how do you report a casual sell. If a hobby than losses are not deductable via a Schedule C. A schedule C is the form where you report income and expenses for self-employment. If it is a business you can deduct losses, but if you have losses for three consecutive years, the IRS can declare your business is really a hobby. Not the tricky part. Since paypal is sending out 1099s you have to report the gross earnings, even if this is a hobby. But, remember if it is a hobby you cannot show a loss. What if you do not report this income via a schedule c on your 1040 return? The IRS will increase your AGI for the gross amount showm on the 1099 and you will owe; tax, self-employment tax, interest, and possible penalties. What a pain just to sell a few old items. If the amount is small just show expenses to cover the gross income. Now, lets say you sell a car or such and receive a 1099. The amount is large enough to raise the interest of the IRS, so beware. They are looking for all the tax dollars they can find.

Please consult a professional as I could write a book to fully explain. Next week I will discuss Alt Min taxes.

Ouch! That just hurt my head.....

[Bisquitlips]

Originally Posted by bodybump

are they monitoring this forum??? I dint sell anything ..i dint sell anything..i didnt sell anything...got to go guys...

Oscar...........!

You are dead.

We will come to visit you at Leavenworth! On Tuesdays and Saturdays!

Say Hi to "The Beast". He just loves new comers!

Especially ones named Oscar!

PS. Send me all your Rolexes for safe keeping!

Richard

[bodybump]

Originally Posted by Bisquitlips

Oscar...........!

You are dead.

We will come to visit you at Leavenworth! On Tuesdays and Saturdays!

Say Hi to "The Beast". He just loves new comers!

Especially ones named Oscar!

PS. Send me all your Rolexes for safe keeping!

Richard

just incase i buy all my watches from richard....

[Bisquitlips]

Originally Posted by bodybump

just incase i buy all my watches from richard....

Dear The Beast and IRS!

This is a lie. Oscar had never purchased anything from me!

Oscar,

Bring lots of Vaseline! And Chapstick! You will find the the Chapstick rolls out to a nice length!


My conscience is clear!

[bodybump]

Originally Posted by Bisquitlips

Dear The Beast and IRS!

This is a lie. Oscar had never purchased anything from me!


My conscience is clear!

you mean to say those were fake watches??? i knew it one was running counter clockwise..thats why im always late...

[Bisquitlips]

Originally Posted by bodybump

you mean to say those were fake watches??? i knew it one was running counter clockwise..thats why im always late...

Oscar,

Did you purchase a case of extra length Chapstick! You are going to need it buddy!

As far as the watches running "counter clockwise". I hereby state that I have NEVER sold Oscar any timepiece either genuine or fake. He is just trying to shift the attention from him to me.

Oscar,

I hear that Walgreen's is selling cases of Chapstick for 1/2 price. I would suggest that you sell a Rolex and buy 75 cases! You will need them.

By the way, Norman (AKA The Beast) says to tell you hello and that he wants your corn everyday in the dining facilities!

Good luck my man!

[bodybump]

Originally Posted by Bisquitlips

Oscar,

Did you purchase a case of extra length Chapstick! You are going to need it buddy!

As far as the watches running "counter clockwise". I hereby state that I have NEVER sold Oscar any timepiece either genuine or fake. He is just trying to shift the attention from him to me.

Oscar,

I hear that Walgreen's is selling cases of Chapstick for 1/2 price. I would suggest that you sell a Rolex and buy 75 cases! You will need them.

By the way, Norman (AKA The Beast) says to tell you hello and that he wants your corn everyday in the dining facilities!

Good luck my man!