Mary Kay says:

I have been asked, “If I sell things on eBay, do I have to pay income taxes on the money?”
 
According to the IRS there are a number of factors that help determine if your hobby can be considered a business and thereby make you sceptible to the IRS tax rules governing business.

1.  Do you carry on the activity in a business-like manner?

2.  Do you conduct your eBay activities like a business, i.e. you keep business records, track your profit and loss, keep a separate checking account, etc. then whether you think so or not, your hobby is considered a business.

3.  If you put considerable time and effort into your venture, the IRS may contend that you do so for profit and not fun.

4.  If you depend on income from your eBay activities for your livelihood, it’s a business, not a hobby.

There are a number of other factors the IRS considers to determine if a hobby is really a business, but these are the important ones.

On the pages of this web site you will find ebay information, hobby and tax information that I have collected from many independent sources.   Each article or news item offers a different point of view and resources.   This information is for general information only. 

If you desire to ask a specific question, feel free to contact me at: Voice: 866-900-1040 Fax:    866-363-1040

• College offers eBay course (Independent Online)

• Couple turns to eBay to help their premature baby (WTNH-TV New Haven)

• Consumer confidence up, but criminals get trickier: eBay (ZDNet Australia)

• 300K for Syd Pad

• Fruits of community labor

• Fee rise hits eBay minnows (Australian IT)

• France To Abolish Payroll Tax For Low Income Workers, (Tax-News.com)

• Experts Say Economy Is Slowing Down

• Brixton Profit Declines 4.8% as Disposals Crimp Rental Income (Bloomberg.com)

• Brixton Profit Falls as Disposals Crimp Rental Income (Update1) (Bloomberg.com)

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