Forum Thread

Paying taxes - Question for those that buy FAR items to sell on Ebay.

just123me 5,197 1,099 December 26, 2015 at 07:27 AM
I buy mostly FAR or discounted items during the year. Actually I just started this past March. A good bit of the FAR items are software. After purchasing I sell it on Ebay.

So this would be my first year with sells on Ebay. I take it we report Ebay sells on our taxes. Hopefully we can expense out the Ebay fees, stamps, envelopes, copy paper, printer ink and that type thing also?

Some items sold did cost some money so not entirely profit. When an item sells, I subtract fees and cost of item to give me true profit.

I understand that Ebay does not have any tax forms they mail out but Paypal does?

Any helpful hints would be appreciated. I've always used TaxAct so hopefully it guides me through.

Thanks.

12 Comments

1

Sign up for a Slickdeals account to remove this ad.

#2
I add in the cost of the item Before rebate
Reply Helpful Comment? 0 0
Joined Feb 2009
L9: Master
5,197 Posts
1,099 Reputation
Original Poster
#3
Quote from ArvinT View Post :
I add in the cost of the item Before rebate
Yeah, that makes sense. Thanks.
Reply Helpful Comment? 0 0
#4
Its safe to say most eBay sellers that only gross a few hundred a year don't report it and the IRS doesn't care. eBay only send a 1099 when you hit 200 transactions or $20,000 gross a year
Reply Helpful Comment? 0 0
Joined Feb 2009
L9: Master
5,197 Posts
1,099 Reputation
Original Poster
#5
Quote from SDPA View Post :
Its safe to say most eBay sellers that only gross a few hundred a year don't report it and the IRS doesn't care. eBay only send a 1099 when you hit 200 transactions or $20,000 gross a year
I agree that those that don't sell a lot won't report taxes even though they probably should. Is it EBay or Paypal that sends out the 1099? I have sold over 200 but definitely not over 20'000. lol
I wish I had kept better records of what I sold. All I have is my spreadsheet but didn't keep track of what each item sold for accurately until later.

Where/how is the best way to see all sales for 2015? I think EBay only goes back 60 days.
Reply Helpful Comment? 0 0
#6
Quote from just123me View Post :
I agree that those that don't sell a lot won't report taxes even though they probably should. Is it EBay or Paypal that sends out the 1099? I have sold over 200 but definitely not over 20'000. lol
I wish I had kept better records of what I sold. All I have is my spreadsheet but didn't keep track of what each item sold for accurately until later.

Where/how is the best way to see all sales for 2015? I think EBay only goes back 60 days.
Paypal has all your transaction. Don't know who sent them out. Now that eBay and Paypal split wonder if they'll send 2 out now
Reply Helpful Comment? 0 0
Joined Feb 2009
L9: Master
5,197 Posts
1,099 Reputation
Original Poster
#7
Quote from SDPA View Post :
Paypal has all your transaction. Don't know who sent them out. Now that eBay and Paypal split wonder if they'll send 2 out now
Thanks. I've been reading around and people seem to say that Paypal will send the 1099 and Ebay doesn't so who knows.
Reply Helpful Comment? 0 0
Joined Aug 2006
L10: Grand Master
12,273 Posts
15,125 Reputation
Pro
#8
Quote from SDPA View Post :
Its safe to say most eBay sellers that only gross a few hundred a year don't report it and the IRS doesn't care. eBay only send a 1099 when you hit 200 transactions or $20,000 gross a year
Pretty sure it's AND as in $20,000 AND 200.

https://www.irs.gov/Businesses/Ne...t-Entities
Reply Helpful Comment? 0 0

Sign up for a Slickdeals account to remove this ad.

Joined Aug 2006
L10: Grand Master
12,273 Posts
15,125 Reputation
Pro
#9
Quote from just123me View Post :
I buy mostly FAR or discounted items during the year. Actually I just started this past March. A good bit of the FAR items are software. After purchasing I sell it on Ebay.

So this would be my first year with sells on Ebay. I take it we report Ebay sells on our taxes. Hopefully we can expense out the Ebay fees, stamps, envelopes, copy paper, printer ink and that type thing also?

Some items sold did cost some money so not entirely profit. When an item sells, I subtract fees and cost of item to give me true profit.

I understand that Ebay does not have any tax forms they mail out but Paypal does?

Any helpful hints would be appreciated. I've always used TaxAct so hopefully it guides me through.

Thanks.
Quote from ArvinT View Post :
I add in the cost of the item Before rebate
Not sure what this means but a rebate reduces the purchase price of the item for profit/loss purposes.

In very basic terms, profit/loss = sales - purchase price + rebates - expenses
Reply Helpful Comment? 0 0
#10
Quote from bpvh View Post :
Pretty sure it's AND as in $20,000 AND 200.

https://www.irs.gov/Businesses/Ne...t-Entities
When I searched before all the links I found said or, example [ebay.com]. Searching again today I found this, so looks like you're right
Reply Helpful Comment? 0 0
Joined Feb 2009
L9: Master
5,197 Posts
1,099 Reputation
Original Poster
#11
I sold over 200 items but not over 20,000. So am I still supposed to report on my taxes if no 1099K?

Thanks for posting the info from that other thread. I'm still reading it but that was 3 years ago and I'm sure some things may have changed since then.

I'm sure not looking forward to filing my taxes this year. Usually I do on my own but maybe I'll actually need to hire someone this year to help with these Ebay sales.
Reply Helpful Comment? 0 0
Joined Aug 2006
L10: Grand Master
12,273 Posts
15,125 Reputation
Pro
#12
Quote from just123me View Post :
I sold over 200 items but not over 20,000. So am I still supposed to report on my taxes if no 1099K?

Thanks for posting the info from that other thread. I'm still reading it but that was 3 years ago and I'm sure some things may have changed since then.

I'm sure not looking forward to filing my taxes this year. Usually I do on my own but maybe I'll actually need to hire someone this year to help with these Ebay sales.
You report on your tax return regardless of whether you receive 1099K.

If your ebay sales were a "business" -- basically a for profit activity -- then for tax purposes the details of that business are accounted for on a federal Schedule C.

If you are otherwise comfortable doing your own taxes, you might want to give the Sch C a go. There are many resources that can help you.

ADDED:
See this IRS page: https://www.irs.gov/Businesses/Sm...on-Sellers
Reply Helpful Comment? 0 0
Last edited by bpvh January 1, 2016 at 06:14 AM
Joined Feb 2009
L9: Master
5,197 Posts
1,099 Reputation
Original Poster
#13
Quote from bpvh View Post :
You report on your tax return regardless of whether you receive 1099K.

If your ebay sales were a "business" -- basically a for profit activity -- then for tax purposes the details of that business are accounted for on a federal Schedule C.

If you are otherwise comfortable doing your own taxes, you might want to give the Sch C a go. There are many resources that can help you.

ADDED:
See this IRS page: https://www.irs.gov/Businesses/Sm...on-Sellers
Great. Thanks for the link. Usually I just go step by step with Tax Act and answer the questions as I go and any schedules are filled out automatically in the end. We'll see how it goes this year. lol I'm always up for the challenge.
Reply Helpful Comment? 0 0
Page 1 of 1
1
Join the Conversation
Add a Comment
 
Copyright 1999 - 2016. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard