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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.
State Income Taxes News
Oklahoma governor plans to cut state income taxes
OKLAHOMA CITY, Oklahoma (Reuters) - Oklahoma's Republican governor announced a plan on Monday to dramatically cut state income tax rates and eventually do away with them altogether, and said the state would pay for the cuts by closing "loopholes." Speaking to both houses of the state legislature in her annual "state of the state" speech, Governor Mary Fallin called her tax cut plan "a game ...
Read more...GOP pols take aim at state income taxes
Emboldened by year of legislative advances after sweeping to power, Republican lawmakers push bold idea into mainstream discourse
Read more...Emboldened GOP wants to abolish state income taxes
A year after Republicans swept into office across the country, many have trained their sights on what has long been a fiscal conservative's dream: the steep reduction or even outright elimination of state ...
Read more...Dan Walters: Brown's tax plans skidding
Gov. Jerry Brown's campaign to balance the state budget with new income and sales taxes took a
Read more...Fallin proposes state income tax cuts
Governor Mary Fallin is proposing a plan to drastically cut state income taxes for all Oklahomans, eliminating the tax entirely for one bracket.
Read more...Gov. Mary Fallin details state personal income tax reduction plan
Oklahoma couples making up to $30,000 a year would pay no state personal income taxes and the top rate would be cut by nearly half, according to Gov. Mary Fallin's income tax reduction plan. Over time, the income tax would be phased out for every Oklahoman; the rates would be reduced by a quarter point every year the state's economic growth reaches 5 percent.
Read more...Walters: Brown's tax package takes a double hit
Gov. Jerry Brown's campaign to balance the state budget with new income and sales taxes took a double hit Monday.
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