Paypal Reporting Income to IRS with 1099-K. eBay Sales Over $20,000 AND Sold Over 200 Items

Pretty basic tax setup with the schedule C, should always be using one when selling stuff for profit. Please be aware that you do get screwed on self employment tax, which is currently 15%. I would also recommend not wasting time at H&R as they are about as knowledgeable as a rock.

Keep Receipts
Keep track of mileage during your endeavors
Request yearly credit card statements to pull data from

For ebay, sign up for Sales Reports Plus to get a detailed monthly breakdown of sales/fees etc. In paypal, create a spreadsheet using the Historical Sales Report on a monthly basis. This report will show you every single thing you sold, tax collected on, etc..

Went to HR Block today to get some information, and as expected, EVERYONE is learning how to treat the 1099-K. Was told today that information the 1099-K will then lead someone to do a Schedule C

http://biztaxlaw.about.com/od/glo...edulec.htm

So this probably takes folks out of the realm of a hobby seller, into a self-employed type bracket or small business, even if its not your primary job. And all that is associated with that (expenses, deductions, profits, loss) should be known so to report that.

so one can't just say that my estimated cost is say $25K and after ebay and paypal fee .. didn't really make a profit .. ?

I wonder if it will take me entire another year to calculate what I sold, how much I bought them for etc. etc.

what a mess I seem to be getting in..

Pretty basic tax setup with the schedule C, should always be using one when selling stuff for profit. Please be aware that you do get screwed on self employment tax, which is currently 15%. I would also recommend not wasting time at H&R as they are about as knowledgeable as a rock.

Keep Receipts
Keep track of mileage during your endeavors
Request yearly credit card statements to pull data from

For ebay, sign up for Sales Reports Plus to get a detailed monthly breakdown of sales/fees etc. In paypal, create a spreadsheet using the Historical Sales Report on a monthly basis. This report will show you every single thing you sold, tax collected on, etc.. If you sell via Amazon, use the monthly report. Create 12 separate spreadsheets with the data.

so one can't just say that my estimated cost is say $25K and after ebay and paypal fee .. didn't really make a profit .. ?

I wonder if it will take me entire another year to calculate what I sold, how much I bought them for etc. etc.

what a mess I seem to be getting in..

So you don't keep track of anything you buy or sell? May I ask what it is you sold?

sounds like someone who already has a system in place

I just bought Quickbooks today, after giftcards, was inexpensive. Was going to set up spreadsheets, but think I'll try this route out. Thanks for the tips

You can always go based on Ebay history and estimate cost of good, packing material, to figure out your net and submit that. Its if your audited, that data becomes more valuable. I'll start my tracking and keeping receipts as of now.

I don't think a lot of us does. For example, the Monster 50% off sale, a lot of folks bought to sell some items, and get their personal item for free and get some pocket change in the process. Im sure there were a lot of folks who didn't think they surpassed a mark where it was felt they should have been tracking. This year will make folks like that MUCH MORE aware.

so are we expected to submit all purchase receipts? I sold a few TPs, and some electronics from black friday deals

apparently I did buy quick books from staples so I now need to find where I kept it and then to use it to tabulate!

I would be interested to know how easy it is to integrate Quickbooks after the fact.

so are we expected to submit all purchase receipts? I sold a few TPs, and some electronics from black friday deals

apparently I did buy quick books from staples so I now need to find where I kept it and then to use it to tabulate!

To my knowledge, you do not have to submit receipts unless they are requested. They are typically requested in an audit, otherwise, i am assuming now, if your numbers look good, then you are fine. Just a lot of backtracking booking to be done at this point to the best of your ability.

Integrate quickbooks with Ebay?

In Paypal

Click Reports
Click Download History
Download and save reports for every month of 2011

... but the alternative is telling the IRS that you netted what you gross, which WILL NOT happen

what do you mean by this, 'telling that you netted what you gross?