How Do You File Income Taxes When Selling On Ebay?
Are eBay sellers required to pay taxes on the profit from their sales? The rule of thumb is that if you are selling your own personal items, that have been in your possession for a period of time and were originally purchased for your own use, the answer is no. It is better to be safe than sorry in this situation (especially when dealing with the IRS). In other words, if you are calling yourself an eBay seller, and regularly sell items on eBay for profit, you are responsible for reporting that income. Learn how to include your eBay selling profits and expenses when filing your taxes. Determine if you are a business seller or a hobby seller. Ask yourself these questions: Do you spend considerable time working on your eBay business? Do you depend on the income to pay bills? Do you operate in a business-like manner? If so, you need to claim the income from your eBay business on your income taxes. If you are engaged in selling products for a profit, you must report this income to the IRS.
