Tuesday, February 27, 2007
eBay Sellers To Pay Taxes?
The Financial Times is reporting that eBay may be forced to cooperate with the IRS to turn over eBay seller information for tax purposes.
1. Paypal fees
2. Ebay Listing Fees
3. Ebay Final Auction Value Fee
4. Insurance/Supplies/Your Time
So would the average eBay seller be able to claim time spent? I consider most of the items I list to be of a type of service provided. There is no tax on services (in most states).
If I am selling a used item, the tax has already been paid ONCE. In fact, if the item was bought at retail (and is now used) - the item had business profit, business license, transport taxes and more paid on it. One could argue that the value/bid price on eBay could be lower than the amount of taxes that have already been paid on the item through it's lifespan.
Further, I thought yard sales were not considered taxable ... eBay is no different than a giant yard sale.
I do agree that if you generate more than $50,000 in INCOME (read as profit) eBay should be required to send tax notices.
I have been claiming my eBay income for years even though I make less than $20,000 from eBay each year.