Welcome to Tax preparation
Filing Income Taxes Free Online Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Taxes - And Your Online Business - E-bay And Other Buy And Sell Sidelines
from:By Deb St. George, on Ebay Business Taxes in your Tax Preparation Guide From BusinessNewsDirectory.net
Most people think that the Internet is really a great venue for earning extra income or for generating extra money through sidelines such as buying and selling, auctioning, etc.
Most people also believe that transacting small sidelines or business transactions through the
Internet requires no tax.
However, the truth of the matter is, there are actually taxes that are due for every item purchased or sold through the Internet.
Taxes and your online business (if you have one or planning to have one) should work hand in hand for you not to get in trouble with the government.
Is Your Online Buying And Selling A Hobby Or A Business?
Majority of the people who are involved with E-bay buying and selling would try to say that they don’t really have to pay tax from what they earn through the Internet because they are only treating it as a hobby.
However, agents from IRS would say that whether it is treated as a hobby or a sideline business, taxes should be strictly implemented.
While you may think that doing business on eBay is just something you may consider as a fun pastime, the money that you made, are making or will make is actually still valid to reported as income.
You need to consult with the IRS people first before you can truly say that you are exempted from paying taxes while you are participating in your online business.
You see, everyone seems to love making money but when the time comes that they have to pay their due taxes to their beloved country, they try almost every possible way to escape paying their taxes.
If you have your so-called online business, you should be aware of the rules of the IRS: one is required to pay taxes on all business and personal income and that includes the dough you make selling stuffs on the Internet.
Simple Earnings Still Require Tax (Sniff, Sniff)
As heartbreaking as this may sound, even the simplest business transaction made through the Internet needs to be reported as "income".
For example, you bought an exquisite looking flower vase at a flea market for $5 and then you decide to sell it an eBay for $20. You manage to sell it for $20 so that means you had a $15 profit which would then entail you to report it as income and pay your taxes as fair share.
Realistically speaking, if you don’t treat eBay as a serious and constant venue for your online business, then perhaps you can get away with selling a few items every now and then without having to worry about the IRS tracking you down with their questions about tax dues and other stuffs.
However, if you are a consistent chap at eBay, then the IRS people might categorize your eBay
participation as something that is business oriented and you may end up being required to file a Schedule C form and claim the income that you have spurred.
If you are fond of doing business at eBay and other similar sites, you may want to assess yourself by asking yourself the following questions:
a.) Do I carry my "hobby" in a business-like manner?
B.) Do I spend considerable time working on my "hobby"?
c.) Do I depend on income from my hobby for my livelihood?
If the answer to all those questions are yes, then you most definitely are not carrying a hobby, but in fact a business. By finding out that you are already having a mini-online business at eBay or other similar websites, then you have to be responsible enough to pay for your taxes on your income.
Remember that you have a responsibility for your taxes and your online business.
Filing Income Taxes Free Online News
Casual Male Retail Group, Inc. Reports First Quarter 2012 Results - MarketWatch (press release)
Casual Male Retail Group, Inc. Reports First Quarter 2012 Results MarketWatch (press release) Effective tax rate of 40.4% as compared to 10.1% for the first quarter of fiscal 2011 as a result of the reversal of the Company's valuation allowance in fiscal 2011. Net income of $2.3 million, or $0.05 per diluted share, compared to net income of ... |
eLong Reports First Quarter 2012 Unaudited Financial Results - MarketWatch (press release)
eLong Reports First Quarter 2012 Unaudited Financial Results MarketWatch (press release) Net income for the first quarter increased to RMB11.9 million (US$1.9 million), compared to RMB7.7 million (US$1.2 million) in the prior year period. Domestic hotel coverage network expanded 46% to over 28000 domestic hotels as of March 31, 2012, ... |
Record Number of Pennsylvania Taxpayers File Electronically - U.S. Politics Today
Record Number of Pennsylvania Taxpayers File Electronically U.S. Politics Today HARRISBURG, Pa., May 17, 2012 /PRNewswire-USNewswire/ -- A record 4.5 million 2011 personal income tax returns were filed electronically, the Department of Revenue said today. The electronically filed returns represent roughly 75 percent of all returns ... |
Aeropostale Reports Results for First Quarter of Fiscal 2012 - MarketWatch (press release)
Aeropostale Reports Results for First Quarter of Fiscal 2012 MarketWatch (press release) Net income for the first quarter of 2012 was $10.6 million, compared to net income of $16.4 million last year. For the first quarter of fiscal 2012, net sales increased 6% to $497.2 million, from $469.2 million in the year ago period. |
Reminder: Monday April 30 Is the Deadline to File Your Income Tax and Benefit ... - MarketWatch (press release)
Reminder: Monday April 30 Is the Deadline to File Your Income Tax and Benefit ... MarketWatch (press release) OTTAWA, ONTARIO, Apr 27, 2012 (MARKETWIRE via COMTEX) -- The Canada Revenue Agency (CRA) encourages you to file your income tax and benefit return and pay on time and online using the CRA's quick, easy, and secure electronic services. |
The Morning Download: What Facebook Means for Business - Wall Street Journal (blog)
The Morning Download: What Facebook Means for Business Wall Street Journal (blog) Tax lawyers, meanwhile, think that Saverin's move has more to do with estate and gift taxes than income tax. To get around capital gains, many American shareholders live tax free by borrowing against their shares, Hardy explains. But estate taxes could ... |
Advance Auto Parts Reports First Quarter Fiscal 2012 Diluted EPS Increase of ... - MarketWatch (press release)
Advance Auto Parts Reports First Quarter Fiscal 2012 Diluted EPS Increase of ... MarketWatch (press release) On a rate basis, operating income was 11.5% of total sales as compared to 9.8% during the first quarter of fiscal 2011. Operating cash flow for the quarter decreased 13.6% to $235.4 million from $272.5 million in the first quarter of 2011. Free cash ... |