wow paypal is a very respected company i hope this comes true veryy soon !!!!!

In my own opinion if you sell on Ebay consistently which would be considered as a business and not a hobby anymore, I think you are entitled to pay taxes but if you only sells a few items every so often I don’t think you need to pay tax on a few cash you make.

I reported my sales on Ebay when I did it. Taxres are only charged if the person buying purchased from you're area. Being in Canada, If i was to sell to the states, no taxes applied.

If I sold to Canada Federal taxes applied but not provincial.

That wouldn`t surprise me at all. The world`s governments are doing all they can to help improve their bank balances due to all the bailing out they`ve had to do these past months.

It is against the law not to report all income to the internal revenue system dept. Even though most people would say that selling on eBay is just a hobby, it still earns you extra income.

To help you stay on the right side of the law, the IRS has come up with all sorts of ways to report this miscellaneous income. If you want to call your eBay venture a hobby, for example, you can only do this as long as you're not pursuing the hobby with the intention of making money. If you do report this as hobby income, you can deduct hobby expenses from your income. But you can’t use hobby losses to offset other, non-hobby income.

If you call selling stuff on eBay a business, different rules apply, but you can still deduct expenses from your business income.

It's you call!

EBay does have a small section when you setup your account to charge sales tax for your state of residence.
Really important to implement that option

Those who just deal their own things on ebay that they don't desire any more, they generally end up trading for less than the buy cost. so they don't commonly have a profit so there's not anything to be taxed. People who deal on ebay as a enterprise, producing a earnings, are subject to tax. If somebody deals something of their own but makes a large-scale earnings on it, perhaps an antique or collectible, then that's taxable.

ebay sales generally dont attract taxes on profits as most sales are those of used goods and are sold for prices way below their costs. but for those who run ebay accounts as an enterprise and sell goods for profits, one may need to look into the taxes payable. taxes are definitely payable when a collectible or antique is sold at huge amounts. if one is wondering about the sales or service taxes, one can use the tax tool provided by ebay. here you can find out the various taxes due in diffrent states and use the tool to charge sales taxes depending on the area of sale or shipment.