Anyone know how to pay taxes on ebay?? for selling. if we do

I'm not a tax professional, but my understanding is that you need to pay taxes on any profits you make at an auction. If you are selling old items out of your garage for less than you paid for them, that would count as a loss and would not be taxable. However, if you are selling items for more than they cost you, you need to claim that as income.

There are also some distinctions between selling as a hobby, selling collectibles (capital gains), or selling as a business which will affect what tax rate you are charged, but I'm not sure the specifics of those off the top of my head.

go to the Ebay community discussion boards and there's alot of info on that subject there.

Use an eBay accont which isn't in your name, and withdraw to a debit card which isn't in your name. Then theres no need to pay tax.

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.

I would have to agree with you on that. Not a step to miss.

If your EBay store has only one location, in most cases you will only pay taxes on EBay sales to those shipments into your home state. You must remember, however, that when you set yourself up as a seller, you will need to contact the taxing authority to obtain the information you need for submitting taxes on sales of goods to buyers in your state of operation. Although most of your customers will probably be in a different state, there is the occasion when you will get orders from someone in the same state, and then you will need to pay taxes on EBay sales. Of course, in those cases you are going to charge the tax to the buyer, but it is your responsibility as a seller to see that the funds are submitted to the taxing authority in your state. You also may want to check with your accountant as you set up your EBay store for more information since some states do not exempt sales to other states. Normally referred to as a "use tax," this involves a tax on merchandise purchased in one state but used in another. Though not all states have this tax, you need to know the states that do in order to pay taxes on EBay sales when it is necessary.

whew r u located

http://reviews.ebay.com/Taxes-and-Ebay-eBa...000000000720733

I've never paid taxes on anything I've sold on ebay and I've been selling for ages now.

I am agree with steweroad . He provided here good solution for you. I respect his knowledge and thankful for providing an awesome news like one above.

This was a good suggestion that you put up here...dude…..
hope that it benefits all the ones who land up here.

you're pretty much on the honor system as far as income tax goes - if you're just selling some used items, like at a garage sale, don;t even worry about it - if you're treating it like a business,worry about it when you are grossing $1000 per month in gross sales (not profit) - but keep track of your costs of items sold, ebay fees and paypal fees if you use paypal

If you had a profit of $800 last year, you need to file, and will be responsible for self-employment tax.

If you don't want to file every quarter, you can pay the whole year's worth of estimated taxes in the first quarter. Otherwise, you're subject to penalties.

When someone just sells their own stuff on ebay that they don't want any more, they usually end up selling for less than the purchase price (same as garage sales) so don't normally have a profit so there's nothing to be taxed. People who sell on ebay as a business, making a profit, are subject to tax. If someone sells somethine of their own but makes a big profit on it, maybe an antique or collectible, then that's taxable.

Hello all,

I am in the financial services arena and I do know that within the next few months all Ebay to Paypal transaction will be reported to the IRS. The IRS is actually pushing for it to happen sooner.

Hope that helped


S

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