Ebay Income

[HoldenMcCrank]

How does one (or do you at all ) handle Ebay income when it comes to tax time?

I am looking at selling some items on ebay and if this works out like I hope it could mean some substantial extra income. I want to know so I can set aside x% if I need to.

Thanks

Holden

 

[Guest]

Well, i know that if you dont sell more than 600 bucks on ebay, you dont have to do taxes on it. Does the same apply to buying? Cuz i've bought quite a bit this year on ebay. I'm sure that if you check out the ebay unioversity online someone would know the answer to that.

 

[HoldenMcCrank]

If all goes well

I am looking to make atlease a couple hundred a month if not more.

 

[jemcaesar]

This is from what I can recall and applies to Australia only (with the caveat that this is just an opinion):

If what you are doing is just a hobby then you don't have to pay tax; if it is a business you do have to pay tax. A hobby becomes a business when you are keeping accurate business records - ledgers of purchases and sales, etc.. Although I think the Australian Taxation Office has said that eBay income is taxable income.

Honestly though I sell maybe a similar amount on eBay but don't declare it as taxable income - simply because I don't consider it a business - and I would suspect most people do the same.

 

[SweetErika]

How does one (or do you at all ) handle Ebay income when it comes to tax time?

I am looking at selling some items on ebay and if this works out like I hope it could mean some substantial extra income. I want to know so I can set aside x% if I need to.

Thanks

Holden

I'm guessing it would be reported at "Other Income," and most people don't report it unless they're traceable big-ticket items, just like most don't report garage or other-sale income. Besides here and eBay, you could always call the IRS and ask, but they're likely to tell you to add it into your income. I'm sure the website has something about the threshold for income from sales

Well, i know that if you dont sell more than 600 bucks on ebay, you dont have to do taxes on it. Does the same apply to buying? Cuz i've bought quite a bit this year on ebay. I'm sure that if you check out the ebay unioversity online someone would know the answer to that.

I believe you only have to pay taxes on buying for state sales tax purposes, which, in most cases don't apply to online purchases. The government doesn't care how much you buy.