We’ve blogged about eBay businesses in the past. Mark explains the tax issues…

Accountinator

Garage Sale In MonroeRegularly trading items on eBay could be a taxable business, subject to income taxes, but benefiting from many great tax deductions.

How do you know if your eBay business is taxable?  If you sometimes buy items, use them, and then occasionally resell them on eBay, then your transactions are like an online Garage Sale – don’t worry about the taxes.  But if you buy items on eBay with plans to resell them at a profit, then you could be an online auction business, in which case you have taxable income (sorry) but can deduct business expenses, including the treasure trove of business-use-of-home expenses.
The tax rules here can get very complicated, and if you lose too much money, for too long a period of time, your online auction business could be construed as a “hobby:” no longer deductible.
[Image: Garage Sale In Monroe…

View original post 5 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: