Ebay and Taxes - Page 2

Originally Posted by CTscrapman

I woudln't claim anything I didn't have to George. If you didn't hit the thresholds setup by paypal for 2012 why offer Big Brother another way to get into your back pocket? If you were a server at a restaurant and made $200 a night in tips would you claim the whole thing or the minimum allowed? Like others have said those thresholds will more than likely be lowered so take what you can Exxon Mobile style.

IRS has funny ways of biting you in the butt if your not 100% careful. There is some things that you do not have to claim, but I have learned time and time again that you claim anything you can, and do a write off on anything you can as well.

When I drove truck commercially I kind of ignored my taxes for a couple of years fearing what all I would owe. I was hired as a sub-contractor and owned my own truck. I got a friendly letter from the IRS and that's when I went looking for a tax professional in my area of expertise. Long story short I did not end up paying any taxes cause as my prof. explained it,"there's a lot of grey area here".

I'm sure there's quite a bit of grey area here in this industry, just have to be smart enough to recognize it. If not you might as well just hold your billfold open for them and trust them to leave you something,,,,lol
JOKE****

In order to simplify tax collections in the near future the
IRS will issue a new easier to use tax form.
1. How much money did you make this year? _____________
2. SEND IT IN.

Originally Posted by CTscrapman

I woudln't claim anything I didn't have to George. If you didn't hit the thresholds setup by paypal for 2012 why offer Big Brother another way to get into your back pocket? If you were a server at a restaurant and made $200 a night in tips would you claim the whole thing or the minimum allowed? Like others have said those thresholds will more than likely be lowered so take what you can Exxon Mobile style.

If you DON'T claim everything you earn I wouldn't say that on a public forum. Big Brother is everywhere.

Originally Posted by ScrappinRed

hmmmm... paypal says this,

"Will I be affected by the 2011 tax changes if I only meet one of the thresholds?

No. A seller has to exceed both IRS thresholds ($20,000 in gross payment volume and 200 separate payments) in a calendar year before a Form 1099-K is required. We may require that you provide a tax identification number before you reach these thresholds however we will only report your payments if you exceed both thresholds."

so it would appear you have to have over $20,000 gross AND 200 separate payments. I was worried! I would hit the 200 payments, but am faaaaaar from the $20,000 gross. BUT this was for last year and who knows if it will change for this year???

See, I'm the odd opposite to this. I had close to $40,000 in sales last year, but less than 200 payments. What I've found is that with eBay, you are much better off farming big items than small.

Originally Posted by GeorgeB

I personally claim everything and document every expense.
.

If that is the case, then what is the point of your post and the thread??? You seem to often ask questions that you have either already decided a course of action for, or want to automatically go against the responses you receive.

Originally Posted by GeorgeB

My wife and I was talking, and she brought up a good point, so I wanted to see what the rest of you who sell actively on ebay.com do.

When it comes to Ebay earnings and taxes, do you calculate that into your taxes when you file each year, as part of your income/business income, or not?

I mainly do it, to get more out of the stuff I find, then just scrapping it, and use it for extra spending money.

Doesn't really go to the business per say.

Just wanted to see what you guys do with it.

And which is it do you claim it or not, your like a walking talking contradiction.

you cant avoid a visit from uncle sam if its due. Audit insurance is worth every penny if you are having your taxes professionally prepared.