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DId Anyone Claim Ebay Profit on their Tax Return?

kalakala 3,361 Posts
edited April 2007 in Strut Central
no thankspry that shit from my cold dead hands ....irs thieves
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  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    I did
  • RaystarRaystar 1,106 Posts
  • RaystarRaystar 1,106 Posts
    I did

    Your in business, you probably are a LLC... it probably helps you to do so.
  • kalakala 3,361 Posts
    I did

    Your in business, you probably are a LLC... it probably helps you to do so.



    yeah i guess it would be the wise move since you own a storefront
  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    I did

    Your in business, you probably are a LLC... it probably helps you to do so.

    Well, corporation... but I also know individuals who reported... Hard to explain tens of thousands of dollars all from the same place. For me it didn't really help, unless you count avoiding future audits.... bigger numbers are harder to hide.
  • meatyogremeatyogre 2,080 Posts
    I did
    ditto.
  • ZekeZeke 221 Posts
    If you aren't claiming yet, I would start next year: the IRS doesn't like anyone messing with their money.
  • cpeetzcpeetz 2,112 Posts
    Hells no.
    I won't until I'm forced to.
  • meatyogremeatyogre 2,080 Posts
    I dont see what the big deal is anyways. Unless yall are ballin out of control from Ebay like AP, you probobly got nothing to worry about, return-wise. Claim that shit and move on... that shit is right out in the open for you to get audited with if you dont.
  • erewhonerewhon 1,123 Posts
    Hells no.
    I won't until I'm forced to.

    ???

    No one's EVER gonna force you. They'll just audit you and, if need be, arrest you. Good luck with that.
  • aleitaleit 1,915 Posts
    I did
    ditto.

    yah, dudes. DO IT.
  • DjArcadianDjArcadian 3,632 Posts
    Hells no.
    I won't until I'm forced to.

    ???

    No one's EVER gonna force you. They'll just audit you and, if need be, arrest you. Good luck with that.

    You won't get arrested. They'll garnish wages or put a lien against your bank account and simply take the money.
  • The_Hook_UpThe_Hook_Up 8,182 Posts
    Any experts? What's the unpaid tax bill limit before they put a lean on your bank account and or garnish? I thought I remembered $5,000 as being the minimum before they come after your ass. I remember talking to an ex-IRS dude about this...cant remember the actual figure
  • high_chigh_c 1,384 Posts
    don't the IRS have bigger fish to fry?

    I'm still waiting for a suit to knock on my apartment door:
    "Explain this mysterious transfer of $137 dollars into your checking account on October 7, 2006... Don't see I>this[/i] income anywhere on your return."
  • coffinjoecoffinjoe 1,743 Posts
    I did
  • CousinLarryCousinLarry 4,618 Posts
    don't the IRS have bigger fish to fry?

    They fry fish of all sizes.
  • noznoz 3,625 Posts
    this thread is scary.
  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    Dudes, have some basic common sense. If you sold a record for $137 dolla and you have a paypal transfer that does not mean shit. Don't worry about it. If you clocked more than 2000 or so this year then you probably should claim it, just to be safe. It's not going to put you in a new tax bracket.

    It is amazing that people making 5-10k a year in BANK TRANSFERS think they don't have to pay taxes on it. The shit ain't CASH, man.

    The IRS audits small businesses and the self-employed WAY more often than big ones. Some ungodly percentage more. You can launder cash a million ways but once it's in your bank account be prepared to claim it.
  • erewhonerewhon 1,123 Posts
    For all the folks on here that report ebay record earnings, do you also claim your business expenses? If so, which ones and how? It's obviously easy to keep receipts for postage- which I have always done- but how do you report the money you spend to buy the records you resell? What about gas money for digging and all that? Do you just come up with a reasonable guess, or do you actually keep a tight record? As someone in the $5000-$7000 range (and growing), it seems impossible for me to document this accurately, which is the main thing that's kept me from claiming ebay thus far. I'm thinking it's gonna be unavoidable next year, though.
  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    Keep accurate records, any receipts even from the ATM that you can, and claim lots of cash expenditures. You have to track your expenses like you would with anything else. Any accountant worth his salt should be able to show you the ropes.

    That said, sometimes it helps if your expenses are higher than your sales... hint hint...
  • peacefulrotationpeacefulrotation 3,481 Posts
    I did
    ditto.

    me too...

    and I got money back!
  • DjArcadianDjArcadian 3,632 Posts
    For all the folks on here that report ebay record earnings, do you also claim your business expenses? If so, which ones and how? It's obviously easy to keep receipts for postage- which I have always done- but how do you report the money you spend to buy the records you resell? What about gas money for digging and all that? Do you just come up with a reasonable guess, or do you actually keep a tight record? As someone in the $5000-$7000 range (and growing), it seems impossible for me to document this accurately, which is the main thing that's kept me from claiming ebay thus far. I'm thinking it's gonna be unavoidable next year, though.

    Everything is reported on a Schedule C (http://www.irs.gov/pub/irs-pdf/f1040sc.pdf)

    Whatever costs you incur in the process of doing business is tax deductible. Just add up all your receipts (record purchases, gas, office supplies, etc.) and then categorize them. Turbotax makes this really easy at the end of the year.
  • DjArcadianDjArcadian 3,632 Posts

    That said, sometimes it helps if your expenses are higher than your sales... hint hint...

    Keep in mind that you need to show a profit at least once within five years. You can't continually run a company at a loss or the IRS will recategorize your business as a hobby and will basically void all your expenses and tax you on all your income.
  • anthonypearsonanthonypearson 2,442 Posts
    you folls. if you dont claim it, it is "unreported income". break it down in your own mind however you want, regardless it's in your bank account so it is income.
  • erewhonerewhon 1,123 Posts
    you folls. if you dont claim it, it is "unreported income". break it down in your own mind however you want, regardless it's in your bank account so it is income.

    I don't think anyone here is disagreeing with that. Folks are just 1) stating whether they actually abide by the law or not, and 2) weighing their chances of getting caught and/or the seriousness of the consequences based on how much they are making.

    Having said that, though, see my question above. Do you mean to say that you actually get sales receipts from everyone you buy records from? In the world of flea markets, estate sales, storage buy outs, etc, this just seems highly improbable. Maybe I'm still thinking too much like a hobbyist...I dunno. School me.
  • RockadelicRockadelic Out Digging 13,993 Posts
    I did
  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    Just keep track of it. There's room for receipt-less cash expenditure. Just write it down when you're done. Keep the ATM receipt. Something
  • SwayzeSwayze 14,705 Posts
    How much do you have to make on ebay to have to declare it?

    I sold an ASR-10 for $730, am I evading taxes?
  • DjArcadianDjArcadian 3,632 Posts
    How much do you have to make on ebay to have to declare it?

    At least $0.01
  • RockadelicRockadelic Out Digging 13,993 Posts
    no thanks
    pry that shit from my cold dead hands ....irs thieves

    I've given this a second thought, and no, you shouldn't pay.

    Fuck them.......send them a letter and tell them you're not payin'

    Who the hell do they think they are?

    Take photos of the piles of cash you've made on ebay, send them to the head of the IRS and tell him to shove 'em up his ass.

    Make sure you include your Social Security number so they don't think it's a prank.

    Cold dead hands.......that's the ticket.

    Stand up to the man, man!!
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