ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

eBay Tax Tips

Updated on September 14, 2014

eBay Sellers - Learn How to Save Money on Your Small Business Taxes!

Hey eBay sellers! Now that you're making a profit on eBay, you're probably wondering...

1. Do I have to report my eBay income?

2. What expenses can I deduct?

3. How can I minimize the taxes I pay on my eBay income?

If you want to learn how to minimize your taxes and keep more of your eBay profits, this is the place to be!

As a CPA and an eBay seller, I specialize in offering tax planning and advice to eBay sellers and other online business owners.

For even more tips, tools and articles on eBay and taxes, please visit the eBiz Tax Tips blog.

Are You Ready for the New 1099 Rules?

Starting in 2011, credit card merchants - including eBay, PayPal and Amazon among others - will have to start sending out 1099 forms to sellers who meet certain criteria. If you earn money online, whether it's selling items on eBay, selling your own product, or selling affiliate products, you may get a 1099 next year.

This bill has been years in the making; the original bill proposed that credit card processors be required to file 1099s for each seller that had at least $10,000 in gross sales and 200 transactions. The numbers in the final bill are a bit different - you must have at least $20,000 in gross sales and 200 transactions before credit card merchants are required to send you a 1099, so less people will be affected than originally thought.


1099 Reporting Deadline Approaching Quickly...

Did you hire an eBay assistant, or a graphic designer, or virtual assistant to help in your business this year? If so, you may need to file a 1099 for that person. IRS Form 1099 is used to report various income sources, such as income earned by independent contractors. As an eBay business owner, you could get a 1099 from another person if you provided them services, or you may need to provide a 1099 to another person if they provided services to you.

The 1099 deadline is January 31st. You must provide copies of form 1099 to each recipient who meets the requirements, as well as copies to the IRS. To learn more, please visit Reporting 1099 Income.

The Ultimate eBay Spreadsheet!

If you've been looking for an easy way to keep track of your eBay sales and fees, then you've found it!

Easy Auctions Tracker is the Ultimate Excel spreadsheet solution for eBay sellers and Trading Assistants. This spreadsheet doesn't calculate your fees, it actually COLLECTS your transaction information from your eBay account for you!

Easy Auctions Tracker is fully automated and has been Tested & Certified by eBay as a compatible application. By using this spreadsheet, you will be able to quickly collect and record your transactions (sold items and unsold items) without the need to manually enter the information.

With the simple click of a button, Easy Auctions Tracker is able to collect all the information for an entire month's worth of sales from eBay's servers for you. No need to know the item numbers of the sold items, just select the month & year then click the "Get All Items" button.

As an accountant and tax professional who works with eBay sellers, I can say that this spreadsheet will make your bookkeeping and thus your tax preparer's job much easier! Which will mean less time and lower fees for you.

I was excited to find this worksheet and recommend it for eBay sellers who want to track their sales and associated fees in a spreadsheet, but don't want to spend hours entering the information manually.


Ebay and PayPal Must Report to the IRS

Buried deep in the housing act that was just passed is a provision that requires credit card processors - including companies like eBay and PayPal - to report annual gross receipts of it's merchants to the IRS.

Credit card processors will be required to file Form 1099 for each merchant that has at least $10,000 in gross sales and 200 transactions.

Companies have until 2011 to comply with this new law.

The purpose of this new law is to raise revenue for the housing recovery package and to close the tax gap that exists. The IRS estimates that it loses billions of dollars in tax revenue from small businesses who under-report (or don't report) income.

While I'm worried that this new law will cause the cost of business for small and online business owners to go up (in the form of higher eBay fees, higher PayPal fees, etc.), I also think that all small business owners should pay their fair share of taxes (I pay my taxes, why shouldn't all small business owners?).

eBay & Taxes

What's Your Biggest Question About eBay & Taxes?

See results

Q&A: Do I Have to Pay Tax on Personal Items Sold on Ebay?

Q: I started selling items from around my home that I don't want anymore on eBay. I am selling BELOW what I paid for these items. I'm not trying to make a profit, I'm just trying to get rid of items no longer wanted. Is this considered a business? Do I have to report my eBay sales to the IRS?

A: Selling personal items at a loss is not a business activity, so you don't have to worry about keeping track of or reporting this activity on your tax return.

The IRS will not allow you to claim a loss for personal items sold on eBay. However, the minute you purchase something with the intent of selling on ebay for a profit, you've got a business, and then you DO need to start keeping track of and reporting your activity.

Note: if you sell both personal items and items that you bought specifically to resell, then you should report the personal items sold as well, but use the sales price as the cost so you don't show a loss for these items. Or, you could setup a separate eBay account and use one for personal use, the other for business use - that's probably the best solution.

Reporting 1099 Income

If you do affiliate marketing, internet marketing, or work as an independent contractor, then instead of a W-2, you will receive a Form 1099-MISC reporting your earnings.

However the company is not required to file this report unless you receive $600 or more in income. Also, currently eBay does not give out 1099 forms, so if your income is strictly from eBay, you won't receive a Form 1099.

The good news is that as an internet marketer or an independent contractor you get to deduct expenses against this income, assuming the expenses are necessary to run your business.

Report your income from your 1099 and any associated expenses on either Schedule C-EZ or Schedule C. This schedule is then attached to your Form 1040.


Q&A: Do I Need to Collect Sales Tax?

Q: Do I collect sales tax on all my sales or just those I sell in my home state? And does this tax money get claimed as income and then expensed as a deduction?

A: This is a great question and one that I get often!

Currently, online business owners and eBay sellers are not required to collect sales taxes on items that are sold and shipped to customers in another state. If the state the eBay seller or business is located in has a state or local sales tax, then you are supposed to collect sales tax on items sold and delivered to the same state, but you do not have to collect sales taxes on sales to customers located in another state.

Sales tax collected is not income, and sales tax remitted to the state is not an expense. So for tax purposes, you should not claim the sales tax you collect as income, and likewise, you should not deduct sales taxes remitted to the state as a deduction.

Top 5 Missed Business Tax Deductions

I spoke about tax tips for small business owners at a seminar this past weekend, and one of the questions I got was 'what are the top missed business deductions?'

This is a great question, so here goes...

1. Automobile expenses - if you use your car for business, you can deduct a portion of your car expenses. You can either keep track of and deduct your (business related) actual expenses, or you can keep track of your business miles and use the standard mileage rate (55 cents per mile in 2009).

2. Startup expenses - business expenses incurred before you actually start the business used to have to be depreciated over 5 years. Starting after October 22, 2004, you can now deduct up to $5,000 of startup expenses in the first year of business. Startup expenses over $5,000 still have to be depreciated (over 15 years). Startup expenses include advertising, hiring employees, purchasing equipment, supplies and more.

3. Education expenses - you can deduct the cost of classes, seminars and other education costs if they are related to your current business.

4. Travel - when you travel for business, you can deduct the cost of the airfare, taxis, hotel, meals, and other travel related expenses. If part of your trip is for personal reasons, you may need to prorate part of the expenses. Also, if you bring your family along, only your own expenses are deductible.

5. Home office expense - many people choose not to take this deduction because it is considered a red flag. If you have a legitimate home office, then you should not miss out on this deduction just because someone says it could be a red flag (being self employed is a red flag, but you wouldn't not go into business because someone says you're more likely to get audited as a small business owner, would you?). Home office expenses include mortgage interest, real estate taxes, home owners insurance, utilities, and security alarm. You can only deduct the portion that represents your home office, but this can be a substantial deduction for many home based business owners.

eBay, Dropshipping and Sales Tax

Many eBay sellers use dropshippers to sell/deliver products. A reader recently asked if she was required to collect sales taxes on items shipped to the same state her dropshipper is located in, if she does not live and operate her business in that same state.

For example, lets say your dropshipper is located in Texas, but you live and operate your business in Florida. A customer in Texas purchases an item and it is delivered to Texas from the dropshipper in Texas. Do you need to collect Texas sales tax on this transaction?

This is a gray area, and I wouldn't be surprised to see it change in the future. But for now, you pay sales tax on items that you ship to the state where your primary business is located. So if you live and operate your business in Florida, you only pay sales tax when you ship items to customers in Florida.

Your dropshipper in Texas may try to charge you sales tax for orders that are placed in/shipped to Texas because their warehouse is located in Texas (and therefore they are subject to Texas sales tax laws). To avoid this, you should get a resellers certificate and supply it to your dropshipper.

However, every state has different sales tax laws, so for additional information you should contact your state's department of revenue.

Is Your eBay Income Taxable?

If you sell items on eBay for a profit, then you may owe income taxes on those profits. It doesn't matter if you sell on eBay as a hobby or if you are trying to build a profitable eBay business.

Generally, any income you receive from all sources is subject to income tax unless it is specifically exempt by law (hint: profits from an eBay business are not exempt).

You must file a tax return if your net earnings from self employment are $400 or more. You are self employed if you carry on a trade or business for profit. If you sell on eBay, you are generally trying to make a profit, and you therefore have a business.

To report your eBay earnings on your tax return, file Form 1040, and attach Schedule C or C-EZ. Schedule C is used to calculate your net profit or loss from your business, which is then reported on your Form 1040.

Top 10 Tax Deductions for eBay Sellers

Many eBay sellers ask me, "what expenses can I deduct against my eBay income?"

Because eBay sellers pay income tax and self employment tax on their eBay profits, it's important to get all the tax deductions you are entitled to.

Here are the top 10 income tax deductions for eBay businesses:

1. Inventory or product purchased for resale

2. eBay fees

3. PayPal fees

4. Postage and delivery

5. Supplies

6. Bad debts (for those non-paying bidders)

7. Advertising

8. Mileage (trips to the office supply store, post office, etc.)

9. Telephone (cell phone, second line, fax)

10. Bank charges

San Diego Man Sentenced for Failing to Pay Taxes on eBay Sales

If you haven't been reporting and paying taxes on your eBay sales, now might be a good time to start. As you can see by the following article, the IRS is serious about cracking down on taxpayers who make money online but don't pay taxes on their eBay or other online income.

SAN DIEGO - A former San Diego police officer who failed to pay taxes on money he made by selling stolen property on eBay was sentenced today to 21 months of home confinement and was ordered to pay $220,000 in restitution.

James Estrella, 48, pleaded guilty a year ago to federal income tax evasion charges. At the time, he was on probation after pleading guilty in state court on Dec. 2, 2004, to four felony counts of receiving stolen property.

U.S. District Judge Roger Benitez said he could have put Estrella in prison, but it was more important for the defendant to pay back what he owed to the Internal Revenue Service.

Do You Need a Tax ID Number for Your eBay Business?

EBay sellers who are sole proprietors are not necessarily required to get a tax identification number, but it may be a good idea to have one.

A tax identification number or an EIN (employer identification number) is a nine-digit number that is assigned by the IRS to businesses to be used when filing tax returns, hiring employees, and for setting up qualified retirement plans. Many banks require an EIN to apply for a loan or to setup a business bank account as well.

You can get your EIN by completing IRS Form SS-4, Application for Employer Identification Number, which is available at the IRS website (www.irs.gov). You should also check with your state to see if you are required to get a state ID number.

IRS Circular 230

Disclaimer: Any tax advice contained in this message is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. It is strongly recommended that you get additional help from a (paid) tax professional who is familiar with your unique circumstances. In other words, don't take take advice from a Squidoo lens, or forum, or blog...

What questions do you have about eBay and taxes?

    0 of 8192 characters used
    Post Comment

    • profile image

      anonymous 10 years ago

      I wasn't aware of tax obligations when selling on ebay. thanks for the tip!

    • profile image

      paulaw 10 years ago

      kind of takes the fun out of selling on ebay when you consider taxes!!!

    • profile image

      ank 10 years ago

      Hi KristineMcKinley , Great lens. I also created my lens on how to do tax free business. To View the lens click here recently. 5 stars to yours.

    • profile image

      gods_grace_notes 10 years ago

      Hi Kristine! This is important info for the multitude of Squidooers who sell on eBay...I'm adding you to the link list in my Angel lens. Great lens, great resource, and much appreciated. 2 thumbs up! Connie

    • profile image

      anonymous 10 years ago

      WOW, wonderful job! Very informative lens on Tax Tips for eBay Sellers. You get 5 stars from me! - I invite you to check out my lens too Live Streaming Video

    • profile image

      frostcry 10 years ago

      great info, thanks

    • Happy Helen profile image

      Helen 10 years ago

      Excellent Lens for eBayers or anyone who has a home based business!

    • profile image

      Quilteralice 10 years ago

      Great information - Thanks! You can visit my ebay store lens at Alice in Stitches Quilting, Knitting and Needlework Ebay Store. Alice

    • SusanDeppner profile image

      Susan Deppner 9 years ago from Arkansas USA

      Excellent lens and much-needed information on this 5-star lens!

      Thanks, and thanks for your kind comment on my lens.

      Susan

    • profile image

      anonymous 9 years ago

      Hi there. You've got a nice resource for eBay sellers going here. Thanks for visiting eBay Selling 101 â A Powerful Internet Marketing Platform. Cheers!

    • TwirlPlanet profile image

      TwirlPlanet 9 years ago

      I'm loving this no-nonsense lens...thanks!

    • profile image

      Jump-Start-Your-Finances 9 years ago

      rksmythe - thanks for blessing my lens! I actually got a lot of great tips off of one of your lenses, so I'm glad you liked it!

    • profile image

      anonymous 9 years ago

      Great Job Kristine!

    • tplus profile image

      tplus 9 years ago

      Thanks for submitting your lens to Get Ratings, Give Ratings! but you have not fulfilled the rules by rating the required number of lenses. Please do so as soon as possible so that I can accept you into the group. DONâT FORGET TO LEAVE A BLURB! Thanks!

    • profile image

      Jump-Start-Your-Finances 9 years ago

      Done! Thanks for the reminder!

    • profile image

      SharonMcMillan 9 years ago

      This is a great page! My husband and I are newbies to ebay and can learn a lot about tax issues from your site.

    • tplus profile image

      tplus 9 years ago

      Thank you for joining Get Ratings, Give Ratings! Great lens, 5 stars!

    • Lady Gotrocks profile image

      Lady Gotrocks 9 years ago

      Great lens! Paying taxes is a MUST do for anyone selling on line. The day of the free ride is over and they can go back up to three years to get you for sales you made back then. Just wrote out a check to IRS for $8,300.00 for what I thought I didn't own in 2005. You are invited to join the Raising Stars group

    • profile image

      flaminglacer 9 years ago

      Glad to have you as a member of the Make Money Online Group - drop by the Group HQ sometime and see what is there for you

    • profile image

      anonymous 9 years ago

      Very informative tips, thank you!

    • profile image

      emanderso 9 years ago

      Great lens full of information - I will be coming back to this one over and over.

    • Gail Faulkner profile image

      Gail Faulkner 9 years ago

      Welcome to the Squidoo Ratings Swap Group Remember to visit the main Headquarters often for new lenses and add your lens to the plexo and vote for it. Gail

    • PartsAndMotorcy profile image

      PartsAndMotorcy 9 years ago

      Hi Kristine,

      Great information for eBayers. I sure it will help people with eBay stores too.

    • profile image

      elsaivymom 9 years ago

      Great info and resources.

    • kathysart profile image

      kathysart 9 years ago

      ~~*~~

      OH FANTASTIC!! FIVE STARS FOR SURE!!

      Unlock Creativity|Critical Thinking Creative Writing Active Reading=Great Art

      https://hubpages.com/art/createart

      ~~*~~

    • profile image

      North_Cascade_Trading_Company 9 years ago

      This is excellent information!! Thank you for providing all of this. It actually answered a few things for me. 5 stars for sure!

      I hope to see you on my lens Bella Sara Cards.

    • profile image

      MrTicket 9 years ago

      Anyone who sells on eBay needs to visit this lens! Well done, 6 stars if it were possible!

    • profile image

      catch-cheating 9 years ago

      very interesting lens, 5 star

    • profile image

      OnceUponaBid 9 years ago

      Great info! Thanks for stopping by my lens. Great tips for Ebayers here on your lens! -Marty

    • CliveAnderson LM profile image

      CliveAnderson LM 9 years ago

      There is some highly interesting information here. Certainly is a really great lens. Better yet is its usefulness. I'm surprised I've not seen it on the SQUIDOO Zone in my Free Forum. 5 stars. Clive Anderson.

      http://www.squidoo.com/PostYourAdFree/

    • CherylsArt profile image

      Cheryl Paton 9 years ago from West Virginia

      Thanks for the great tips!

    • profile image

      International-Investor 9 years ago

      Hi Fellow Squid. Amazing resource. A 5 star-er. Emerging Market Exchange Traded Funds, ETF's.

    • SalesPractice LM profile image

      SalesPractice LM 9 years ago

      Excellent work with your lens Kristine. 5-Stars :)

    • Signhappy profile image

      Signhappy 9 years ago

      Thanks for all of the great information, and your willingness to share with all of us. Saw you on the Raising Stars group. Please visit my lens on The Mercury Retrograde if you have a chance. They're a young rock band and excited about being on Squidoo.

    • profile image

      anonymous 9 years ago

      This looks awesome and is full of great info! Keep up the good work!

    • AlisonLee LM profile image

      AlisonLee LM 9 years ago

      Great info you have for ebayers. 5* I think finding this lens at Rising Star group is a blessing. :) Do drop by my lens at How To Visualize To Get The Life You Want.

      Love,

      Alison

    • profile image

      anonymous 9 years ago

      I love your lens. Great information and really useful, not just for those who market on Ebay but also for online business owners in general...

    • KimGiancaterino profile image

      KimGiancaterino 9 years ago

      Important stuff for anyone in business. I have a fabulous CPA, and always recommend that people trust their taxes to a pro.

    • profile image

      mariane 9 years ago

      Lots of important info.Check my The Angels lens

    • profile image

      FESA 9 years ago

      Thanks for the great lens. You've answered a lot of my questions! Fran (FESA)

    • profile image

      anonymous 9 years ago

      Thank you for this information! I am adding to my favorites and checking back often!

    • profile image

      DeanBakerWholesale 9 years ago

      Lots of great info...5 star rating!

    • profile image

      Ms_Appleseed 9 years ago

      Great lens! Very helpful for my smalltownbiz lens! Will lensroll you! Thanks for all the hard work and sharing this very important info.

    • w00w00 profile image

      w00w00 9 years ago

      Great lens with very informative information! Loved it.

    • profile image

      Southernbooklady 9 years ago

      Great lens and information!

    • profile image

      Jump-Start-Your-Finances 9 years ago

      Thanks for all the comments. I'm glad this information is helpful to you!

    • profile image

      GOLDSMITH 9 years ago

      Hi awesome lens, I have voted you 5 stars, here is my lens online business visit it once if you like it vote my lens. Thank you...

    • chisumtrailmerc profile image

      chisumtrailmerc 9 years ago

      Ah Ha - all of the "merky" questions have been answered - Thank you Dawn

    • profile image

      ShortSaleRealtor 9 years ago

      great information

    • profile image

      Taslo 9 years ago

      Great lens and a lot of great information. Keep up the great work! Everyone needs to know about taxes and fees. ;) 5 stars!

      My Lens

    • profile image

      gearon_garlic 9 years ago

      Soo interesting and informative lens, thanks!

      FIVE STAR By me

      If you have some time, please take a review to my American

      Express credit card lens.

    • Annette34 profile image

      Annette34 9 years ago

      Really great info here - every ebay seller should bookmark this lens!

    • profile image

      Aika 9 years ago

      thanks for the good recommendation, very helpful lens. Lots to learn.

    • SusanDeppner profile image

      Susan Deppner 9 years ago from Arkansas USA

      Thanks for the great resource. I will be recommending this page to others (I hear the question frequently).

    • starrfinancial profile image

      Starr 9 years ago

      Great information as an eBay store owner and as an accountant. Very nicely laid out and compiled. I may have over looked it but for those who don't know you can also deduct the expense of accepting credit cards such as the gateway fee, monthly minimums, per tranaction fee, and percentage fees.

    • profile image

      MarilynBB 9 years ago

      Good information and well laid out but how does this apply to people not living in the US. Do we need to get a US tax number? How if so?

      Marilyn

    • profile image

      Alllovely 9 years ago

      really useful and informative lens. If you ever have a credit card from American Express if not get it from Amex credit card

    • profile image

      GOLDSMITH 9 years ago

      Hi awesome lens, I have given you 5 stars, here is my lens online business visit it once if you like it vote my lens.

    • TomAntion1 profile image

      TomAntion1 9 years ago

      Hi! this is a great lens with lots of useful info. Please visit my new lens: Great Public Speaking Shoppe and get tons of public speaking products. Thanks, TOM

    • profile image

      anonymous 9 years ago

      Great lens, thank you for all the info!

    • profile image

      PricePiece_Marketing 9 years ago

      Great lens! I enjoyed my time spent here. 5 stars - Live Streaming Video

    • profile image

      elishadavis 9 years ago

      Nice and interesting lens. Thank you for the valuable info and resources. Drop by sometime at Credit Card Rewards - Credit Card Reward Programs - Rewards Credit Card.

      Cheers,

      Elisha

    • profile image

      Monsoon-Hot-Tubs-Guy 9 years ago

      Wow, your lens is very helpful. Taxes are always confusing to me and when you put Ebay into the mix it makes things even more complicated. Your tips will make it easy for me this year.

      Check out my site about the pedestal sink if your interested.

    • Music-Resource profile image

      Music-Resource 9 years ago

      Hi Kristine, Wonderful tax deductions and tips lens. I didn't realize that there were so many deduction possibilities. Nice job. ~Music Resource~

    • NorDac LM profile image

      NorDac LM 9 years ago

      Cool, 50.5 cents a mile! I put on a lot of miles over the course of a year, that's good news!

    • pylemountain1 profile image

      pylemountain1 9 years ago

      Very good information - thanks for the lens.

    • workerbee lm profile image

      workerbee lm 9 years ago

      A definite must-view for people trading on, or considering trading on, Ebay. It would be interesting to think how to apply taxes when items are purchased from offshore sites like http://www.chinavasion.com and sold in the states.

      Drop in and have a look at http://www.squidoo.com/Chinese-Made-Car-DVD-player... if you're interested in looking for stuff to sell on Ebay.

    • profile image

      anonymous 9 years ago

      Superb lens........... really maintains such a good lesson on how to check your tax. Really I got some good idea from your articles, thanks a lot for this. I have a lens Reverse Funnel System Review, please visit Reverse Funnel System Review

    • profile image

      dual-shock-3 9 years ago

      Thanks for nice information.

      sky high auctions

    • profile image

      jasonminnig 9 years ago

      Always great to have a home based business and great information on the benefits.

    • profile image

      mp1 9 years ago

      So interesting and informative lens, thanks! FIVE STAR By me. You can find information about the

      Biggest contest in PPC ever... If you have some time, please feel free to check it out.

    • profile image

      Surplus_Suppliers152 9 years ago

      Great lens. I use the BANS and I have products available for resellers. Take a look at my lens, it also has links to some of my BANS sites, maybe you can reference one as an example of a BANS site (worth a try). Thanks.

    • profile image

      anonymous 9 years ago

      Great information. I always procrastinate tax time, but you have some great tips here. Thanks!

    • profile image

      talan 9 years ago

      I've been burned by taxes on my ebay business before. Wish I had seen this lens sooner!

      Todd Alan

      Learn Affiliate Marketing : How I Made $7,000 Online in My First 60 Days

    • profile image

      happyhour 9 years ago

      Very informative post, thank you for the helpful tips.

      http://www.flatwarechoice.com

    • profile image

      Isabel22 9 years ago

      Great job.Thank you for sharing such useful information on ebay tax tips. Documentation is definitely very easy with the audit software and you can even schedule the audit conveniently by using this software. You also do not need to worry about preparing and printing important documents.Here is also similar kind of information on audit software,an interesting site about audit software,Auto Dealer Software,Auto Maintenance Software,Auto Repair Software,Auto Responder Software,Premium Audit Software,Server Audit Software.Please visit us.

    • profile image

      bdkz 9 years ago

      Great lens!

    • teamlane profile image

      teamlane 9 years ago

      Wow! You've got a ton of info here! 5*

      A Squid Angel Blessing at ya! :)

    • profile image

      LillianSmith25 9 years ago

      Wonderful lens! eBay store owners need not pay any more taxes than they have to. For those who need help reconciling all their records, a good auditing software will come in very handy. Check out this site to get an overview of auditing software and how they work. Thanks!

    • profile image

      ShortSaleRealtor 9 years ago

      great lens 5 stars 4 u

    • profile image

      anonymous 9 years ago

      Very helpful tax tips! eBay store owners can better assess their taxes by keeping their records and inventory organized. Store inventory software can easily do the trick with the least amount of hassle and errors. Learn more about store inventory software here!

    • profile image

      EliteClubs 9 years ago

      This lens is great, very informative, thank you.

      Eliteclubs

      Email Marketing Elite

    • profile image

      alila12 9 years ago

      Awesome lens. Useful tips to minimize tax and improve profit. I enjoyed to go through your lens and learnt a lot. Thanks. Every type of business has governing bodies that perform periodic audits on that business. I found a good stuff site about Audit Software on Audit Software Try out this site to find more information about Energy Audit Software, Hardware Software Audit, It Audit Software and many more types of Audit Software.

    • profile image

      anonymous 9 years ago

      Business can better control their taxes if they keep a close eye on their assets. Good thing there are various online inventory tracking systems that aid store owners in monitoring goods via the Internet. Stop by the link to learn more. Thanks!

    • profile image

      anonymous 9 years ago

      Good lens to get collective infromations of ebay tax. Tax is the important part to play in the business. Energy Audit Software will bring the customer who buys it only the very best when it comes to energy audits that are nothing but cost effective in detail.

    • profile image

      PotPieGirl 9 years ago

      What a valuable lens!

      Thank you from eBay Seller Tips

    • profile image

      anonymous 9 years ago

      My bestfriend who runs an eBay store keeps everything automated and organized so she has no problems with taxes and accounting. According to her, management software such as point of sale software and automation really help avoid errors and keep her business files orderly. Check out the link if you want to learn more about sales software. Thanks!

    • kellywissink lm profile image

      kellywissink lm 9 years ago

      Hi Kristine!

      Some of the same great tax deductions can be used for home businesses and bloggers.Great lens! 5 Stars!

      Kelly Wissink

    • profile image

      zuzanna 9 years ago

      Kristine, thanks for this wonderful lens with lots of useful info presented so nicely. One of the best business lenses, well deserving 5 stars. One of my favorites! It's great to have you in my Group; I'm waiting for more lenses from you with great content like this one.

    • profile image

      Metatron 9 years ago

      Greetings from WA. This is from one who happens to find the tax word much more distasteful than the "F" word. It is wonderful to have someone like you to help us deal with it (tax I mean).

    • profile image

      Hawaye 9 years ago

      Why they take taxes web hosting needs

    • profile image

      littlespark 9 years ago

      Wow! What a great lens you have built here. A complete analysis to minimize the ebay tax. Great work and keep up. It is pertinent to put here that Point of sale software helps in the transaction of the goods, to automate the transaction process and in determining the profits of the company. I come across that informative site about POS on POS Please stop by this site for information about Point Of Sale Accounting Software, Retail Point Of Sale Software, Point Of Sale Pos Software and more and more POS.

    • profile image

      Wilson_C 9 years ago

      Oh wow, this is a very detailed lens. Useful for anyone at eBay. 5 stars! WAer

    • profile image

      Brassoo78 9 years ago

      Marvelous lens. Useful tips. Thanks. Please visit the site 1031 Exchange Form on 1031 Exchange Form to find details about 1031 Exchange Form.

    • profile image

      anonymous 9 years ago

      Congratulation on being TOP100. 5 stars given and bookmarked! :)

    • profile image

      anonymous 9 years ago

      Great lens! 5 starts for you and bookmarked!

      For your information, there are 17 million Americans, about 85% of teenagers (between the ages of 12 and 24) suffer from ACNE ~

    • profile image

      anonymous 9 years ago

      Great lens! 5 starts for you and bookmarked!

      For your information, there are 17 million Americans, about 85% of teenagers (between the ages of 12 and 24) suffer from ACNE ~

    • profile image

      romyraut 9 years ago

      Excellent lens. I had issues with taxes accrued from online earnings when I first started out online with my acne website, but learned quickly that it does not matter what the revenue source is, earnings are earnings!

    • profile image

      sstoark 9 years ago

      Thanks for the great information, and well put together lens, I have bookmarked and given it a 5 star rating.

      I am hoping that my lens

      about hair regrowth turns out to be this informative.

    • profile image

      anilg 9 years ago

      You have created a useful lens with lots of quality information about ebay tips. To know about ways to make money online please visit my lens and try the tips mentioned there

    • profile image

      harryfed 9 years ago

      Great lens with lots of useful information about Ebay tax tips. If you need a credit card, then try chase credit card, the best credit card available today in the market!

    • profile image

      beachbum_gabby 9 years ago

      superb lens, great tips and advice.

      recommended!

    • profile image

      bestacnereview 9 years ago

      Great high quality lens. Check out my acne lens also. 5 Stars.

      James - acne treatments

    • profile image

      Hhank 8 years ago

      Thanks very much, this is helpful. Wonder how this translates to other ecommerce stores and Paypal.com payments?

      I am finishing my lens series about used buses.

    • profile image

      acne-guy 8 years ago

      A very nice lens, I have been working on Ebay for a few years, was useful to read through.

      Rajan

      Adult Acne

    • profile image

      Speeding-Ticket 8 years ago

      Wow - a TON of information here. For those of us who are entrepreneurs, the startup cost deduction in particular is good news - it's not too late for me!

      Jed

      Speeding Ticket

    • profile image

      FTA_Keys 8 years ago

      "Top 5 Missed Buisiness Tax Reductions"

      This is a must read! Great lens. 5/5!

      FK

      FTA Keys

    • profile image

      anonymous 8 years ago

      Hi,

      very good information here, I am giving 5 stars for your valuable lens and great informative about ebaytaxtips.

      Checkout my taxattorneyfinder blog

      , thanks!

    • TomAntion1 profile image

      TomAntion1 8 years ago

      Great lens! Five stars for you*****!

      Visit Tom Antion's eBay Store for seriously discounted public speaking training products.

      Good luck! Your friend, Tom

    • profile image

      anonymous 8 years ago

      Excellent lens, I gave it 5 stars for its insightfulness, I recommend for those individuals that are keen on making it big on eBay check out my page: The Real Solution To eBay Live Help, I reveal much need insight into where people can find suppliers, dropshippers and the like.

    • AuthorNormaBudden profile image

      AuthorNormaBudden 7 years ago

      Congrats on your purple star. Your lens has been featured at https://hubpages.com/community/purple-star-awards-

      Please feel free to submit any other purple star lenses you have, if you would also like those featured in my series. Thanks!

    • profile image

      the777group lm 6 years ago

      Great stuff! I've lensrolled you to my recently acquired ebay stores lens.

    • profile image

      GrinningFool 6 years ago

      Very important to plan for the taxes. It's a large chunk when you have to pay Fica and Medicare at the full rate!

    • tvyps profile image

      Teri Villars 6 years ago from Phoenix, Arizona

      I tried to download the trial version of the easy auction tracker and it kept throwing errors. I won't buy it unless I know it will work for what I want. Do you know if you are able to enter in item costs or other associated costs? In other words, I buy an item and pay tax for it, then resell it. Is there a place to enter all that? Good lens otherwise!

    • profile image

      anonymous 6 years ago

      Sales tax in New York State, where I operate my business, is 4%, but in various counties, like New York City, it is 8-9%. When entering information on eBay for my sale, I am only given one slot so I can't enter multiple rates. Which one do I choose? State or city rate? Thanks!

    • EbizTaxTips LM profile image
      Author

      EbizTaxTips LM 6 years ago

      @tvyps: Thanks for the comment tvyps. I emailed the folks who make the easy auction tracker and they would be more than happy to help you setup the trial version and to answer any questions you may have. You can reach them at Support@EasyAuctionsTracker.com.

    • delia-delia profile image

      Delia 6 years ago

      Great LOTD! great informative lens...will favorite it.

    • profile image

      GrowWear 6 years ago

      Congratulations for LOTD!

    • profile image

      huvalbd 6 years ago

      Excellent lens, and helpful for far more than just eBay sellers.

    • SunnyDaze LM profile image

      SunnyDaze LM 6 years ago

      Excellent information here. Thanks for sharing. Great lens and congrats on LOTD. I am an accountant who does Squidoo as a hobby. My earnings are growing every month and I'll need some of this small business info to help me through my taxes.

    • profile image

      anonymous 6 years ago

      Congratulations on your Lens of the Day!

    • jlshernandez profile image

      jlshernandez 6 years ago

      Thanks for all the useful information here. Congrats. on LOTD.

    • EbizTaxTips LM profile image
      Author

      EbizTaxTips LM 6 years ago

      Wow... just got home from a busy day at work and discovered my lens was lens of the day! Thanks for the comments everyone :)

    • Kiwisoutback profile image

      Kiwisoutback 6 years ago from Massachusetts

      Very helpful information! Congratulations on a well deserved LOTD!

    • profile image

      linajo 6 years ago

      very informative lens, congrats for LOTD

    • sheriangell profile image

      sheriangell 6 years ago

      Congrats on LotD - it's well deserved!

    • profile image

      MikeDeHaan 6 years ago

      Useful article even for us Canadians, eh.

    • geeky247 profile image

      Heather Weaver 6 years ago from Colorado

      Excellent information. I'm so confused by my Schedule C and stuff, even with the TurboTax home/business deluxe or whatever it's called. I'll definitely be checking out your blog. Congrats on LOTD!

    • profile image

      anonymous 6 years ago

      Very useful information on eBay and tax.

      Congrats on LOTD.

    • JeffreyTymczak LM profile image

      JeffreyTymczak LM 6 years ago

      Congratulations on your LENS of the Day! Great Job!

      Jeff

    • profile image

      JewelRiver 6 years ago

      Congrats kid! This lens rocked the house!

    • Airinka profile image

      Airinka 6 years ago

      very useful lens

    • Jhangora LM profile image

      Jhangora LM 6 years ago

      Useful Lens, even though I do not reside in the United States. Nearing my first year as a full time Internet and Affiliate marketer. Need to file my IT return this year. Thanx a lot for sharing the tips and congrats on LOTD!

    • Richard-H profile image

      Richard 6 years ago from Surrey, United Kingdom

      Congrats on LOTD! Very useful info.

    • profile image

      Steve-SEO-UK 6 years ago

      Well deserved Lens of the Day status due to excellent and helpful information.

    • mivvy profile image

      mivvy 6 years ago

      Very inteersting and very useful information. Congrats on your LOtD on your

    • sorana lm profile image

      sorana lm 6 years ago

      Great lens. I can see why it was chosen as LOTD. Congratulations.

    • hayleylou lm profile image

      hayleylou lm 6 years ago

      This is such a great resource. **Blessed** and featured on My Time as a Squid Angel :)

    • modz profile image

      modz 6 years ago

      Congratulations on LOTD!

    • SusanDeppner profile image

      Susan Deppner 6 years ago from Arkansas USA

      I'm glad I have a tax man at my beck and call. Really, though, if you read the rules it isn't all that difficult to file a Schedule C (in the U.S.). Just keep good records! Congratulations on your Lens of the Day!

    • Diana Wenzel profile image

      Renaissance Woman 6 years ago from Colorado

      Thanks for a super informative lens. Really learned a great deal that I can use immediately. Kudos on LOTD!

    • ludyshubs profile image

      ludyshubs 6 years ago

      Very valuable information. Thank you

    • Faye Rutledge profile image

      Faye Rutledge 6 years ago from Concord VA

      Thanks for the great information! Congratulations on LotD!!

    • mich1908 profile image

      mich1908 6 years ago

      Thanks for the informative lense. Congrats.

    • profile image

      wawancash 6 years ago

      congrats.. good info

    • profile image

      RinchenChodron 6 years ago

      Very helpful useful information. Congrats on being LOTD.

    • profile image

      happynutritionist 6 years ago

      Learned something new...thanks...I have been selling on eBay since 1999. Congrats on LOTD

    • LauraMarie LM profile image

      LauraMarie LM 6 years ago

      Well done on LOTD. This is a great resource for ebay sellers who need to file their ebay income

    • profile image

      AdriennePetersen 6 years ago

      Nice lens, congrats on LOTD!

    • jptanabe profile image

      Jennifer P Tanabe 6 years ago from Red Hook, NY

      Great LotD, lots of valuable information on taxes - just what I need LOL!

    • Lady Gotrocks profile image

      Lady Gotrocks 6 years ago

      Been paying taxes on my ebay income for 8 years. Always knew the IRS would catch up with this cash cow.

    • kathys55 profile image

      kathys55 6 years ago

      Nice lens, congrats on LOTD!

    • Franksterk profile image

      Frankie Kangas 6 years ago from California

      Excellent information. I have to keep track of several companies, a trust and a non-profit so I prefer Quick Books. I used to do my own tax returns but the tax laws change so often, I pay my CPA to keep up with them and save me money, time and headaches. Congrats on the LOD. Well deserved. Bear hugs, Frankster

    • JanieceTobey profile image

      JanieceTobey 6 years ago

      Thanks for this tax information!

    • Heather426 profile image

      Heather Burns 6 years ago from Wexford, Ireland

      Congrats on LOTD! Help with taxes is always appreciated.

    • Mix Mafra profile image

      Michelle Mafra 6 years ago from Corona CA

      Great Lens. As an ebay seller I will have to take my time an read this one detail by detail. I am taking all my books to my accountant next month so it wlill be great to be on the top of my game. Thank you very much for combining all the info into 1 informational lens. Great job.

    • profile image

      PaintDog 6 years ago

      Informative lens - thanks! Congrats on LOTD :-)

    • jnstewart profile image

      John Norman Stewart 6 years ago from Cottonwood, CA

      Very useful lens. Thanks for sharing the info.

    • profile image

      miaponzo 6 years ago

      Thanks! This is a GREAT lens!

    • nebby profile image

      nebby 6 years ago from USA

      Interesting information. I don't sell on eBay but it's always nice to know just in case.

      Congratulations on LOTD.

    • gypsyman27 lm profile image

      gypsyman27 lm 6 years ago

      Thank you for the thoughts on taxes and other tips about ebay income. See you around the galaxy...

    • profile image

      spiritartist 6 years ago

      Good advice. Congrats on getting LOD!

    • MargoPArrowsmith profile image

      MargoPArrowsmith 6 years ago

      Great information. Welcome to the LOTD club!

    • george185 lm profile image

      george185 lm 6 years ago

      Great lens. I learned a few things. Thanks and congrats on lens of the day.

    • norma-holt profile image

      norma-holt 6 years ago

      Congrats on LOTD and it is now featured on Squidoo LOTD Lenses. Well done and great lens,

    • Judy Goldsberry profile image

      Judy Goldsberry 6 years ago

      Thanks for such valuable information.

    • caketech profile image

      caketech 6 years ago

      Wow, lots of great info here! Congrats on LOTD!

    • LouieWrites profile image

      LouieWrites 6 years ago

      Great lens, congrats on the LOTD!

    • jgelien profile image

      jgelien 6 years ago

      Thanks for the concise and helpful tax information. I learned a lot.

    • nightbear lm profile image

      nightbear lm 6 years ago

      Boy my head is spinning, Congratulations on LOTD. Very detailed excellent information here.

    • onlinebusiness11 profile image

      onlinebusiness11 6 years ago

      congrats on LOTD. Nice

    • supercibor lm profile image

      supercibor lm 6 years ago

      Amazing tips !

    • profile image

      anonymous 6 years ago

      great tips! We have a canadian corporation and we do a little business on ebay. I wonder how that works?

    • natashaely profile image

      natashaely 6 years ago

      Amazing tips, great lens, congrats on being LOTD! :)

    • profile image

      DebMartin 6 years ago

      This is a great lens and very informative. Thanks!

    • pylemountain1 profile image

      pylemountain1 6 years ago

      Great lens, very informative. Congrats on your LOTD award!

    • photofk3 profile image

      photofk3 6 years ago

      Great lens with useful content, thank you.

    • profile image

      anonymous 6 years ago

      you did a great job on this lens, it has great information that people can use.

    • profile image

      ohcaroline 6 years ago

      Ebayers will get a lot out of this. Great information. Congratulations on LOTD.

    • profile image

      WhitePineLane 6 years ago

      Wow! An incredible amount of good info! *Blessed by a Squid Angel*

    • profile image

      Jerry_David 6 years ago

      useful tips on ebay tax, great work!

    • profile image

      JimmyGilliam 6 years ago

      Thank you for the useful information.

    • Retro Loco profile image

      Vicki 6 years ago from USA

      Very helpful & thorough lens! I've got it bookmarked to refer back to. I'm going to start selling lots of retro stuff on eBay this year, and I know this lens will be a huge help when I start doing taxes! Thank you so much for sharing your knowledge. Congratulations on LOTD!!! ~Vicki~

    • profile image

      coolmals 6 years ago

      very useful info !! Congrats on LOTD!!

    • profile image

      Arquinn 6 years ago

      Congrats for being chosen as the LOTD! :D

    • Glenn619 profile image

      Glenn619 6 years ago

      hey nice lens, congrats for being chosen as lens of the day

    • profile image

      resabi 6 years ago

      Congrats on a well-deserved LOTD. This is very helpful. Love the hire your kids idea...

    • profile image

      Oliversbabycarecouk 6 years ago

      Very helpful lens and congrats on the lens of the day. good job

    • mistyblue75605 lm profile image

      mistyblue75605 lm 6 years ago

      Wow very informative!! Thanks! Congrats on LOTD

    • Fox Music profile image

      Fox Music 6 years ago

      Thank You These are Great Ebay Tax Tips and Congrats on Lens of the Day!!

    • Fox Music profile image

      Fox Music 6 years ago

      These are Great eBay Tax Tips Thank You

    • dryder profile image

      dryder 6 years ago

      Great lens ... congrats on getting LOTD!

    • profile image

      JanisRemaxRealtor 6 years ago

      I have been thinking of opening a store on ebay. This has been helpful! Thanks!

    • profile image

      anonymous 6 years ago

      tax = Gayus Tambunan

    • profile image

      thetruthtosixpackabs 6 years ago

      Thank for the information very useful.

    • KimGiancaterino profile image

      KimGiancaterino 6 years ago

      Great choice for LOTD. We have an excellent CPA who stays on top of the latest rules and regulations. I was audited once and it was not a pleasant experience. I had a part-time job as a fitness instructor, and the nasty auditor denied my legitimate business deductions and also heaped on a bunch of outrageous fees. I ultimately went through 3 auditors, and the last one was a nice guy who gave me a break. Nevertheless, I ended up quitting my business after 7 years.

    • EbizTaxTips LM profile image
      Author

      EbizTaxTips LM 6 years ago

      @KimGiancaterino: Wow, that's horrible! Amazing how nasty some of those IRS people can be... probably because they hate their jobs!

    • profile image

      anonymous 6 years ago

      Very helpful and informative ebaytaxtips,thanks for sharing.TASKey.com

    • dawnsantiquesan profile image

      dawnsantiquesan 6 years ago

      Great info thanks!

    • profile image

      anonymous 6 years ago

      I'm 18 and a full time student in the UK.

      I started selling on eBay December 2010, for profit, and have made a profit of £540 ($865) since then, although I sold £1700 ($2700) worth of stock and have had this passing through PayPal and bank account.

      Do I have to worry about tax?

      Thanks.

    • profile image

      Taxmandue 6 years ago

      @KimGiancaterino: Hey Kim. I would suggest contacting the taxpayer advocates office the next time something like this happens http://www.taxpayeradvocate.irs.gov/Home. There are special provisions that deal with situations like yours where an auditor wakes and realizes he hates his life and tries to take it out on taxpayers!

    • UKGhostwriter profile image

      UKGhostwriter 6 years ago

      Very good!

    • Kiwisoutback profile image

      Kiwisoutback 6 years ago from Massachusetts

      No questions as of now, but these tax laws are going to be very difficult for sellers. Thanks for providing all of this information. Blessed.

    • SummersSorbet profile image

      SummersSorbet 6 years ago

      Fabulous lens!! Great answers to questions everybody has to selling/profiting online. I will refer back often - thanks!

    • javr profile image

      javr 6 years ago from British Columbia, Canada

      Returned to bless your lens.

    • profile image

      Miaham129 6 years ago

      I have a questions. How come I can't collect sales taxes from all the state if I have to paid taxes at year end due to the 1099 law? Instead of cutting in to my profits. The customers should paid for this tax not us.

    • nadjaiskeniskie profile image

      nadjaiskeniskie 6 years ago

      Brilliant lens. Now to get my record keeping properly organized. Ty.

    • ramonabeckbritman profile image

      ramonabeckbritman 6 years ago

      Very informative lens. Thanks for sharing.

    • profile image

      mauahmed 5 years ago

      Nice post. But there are some aspects of accountancy which you can not do it yourself anymore. Not agree with me then google "problems with iXBRL". For more business start up deals please visit http://www.companyformations123.co.uk.

    • profile image

      anonymous 5 years ago

      If you are looking for such software that can do famous keeping of tax information for you that you may consider personal finance packages such as Speed (From Intuit) of Microsoft Money. I mentioned this software is because I used them both, also I know that they are easy to use and most significantly very easy to learn. accountancy firms

    • profile image

      dvpwli 5 years ago

      Very well written, I have observed some of lenses, which is really awesome, Here i am looking and collecting great lenses list and want to publish one lens. Thanks

    • profile image

      anonymous 5 years ago

      WOW! Thanks for sharing your ideas and tips with the squid community. This is a fantastic lens! Keep up the great work.

      One big thumbs up vote given for this lens.

    • profile image

      StickyEntertainment 5 years ago

      I noticed this while visiting another of your lenses. Great info for those of us making some eBay money. Well done and informative.

    • profile image

      anonymous 5 years ago

      I'm an ebay trading assistant. I sell excess inventory for a computer networking company. I collect all monies due from buyer less commission and the rest goes back to my consignor. Do I pay taxes on the gross amount collected from buyer or my commission? What tax form do I fill out?

    • profile image

      anonymous 5 years ago

      My 22 year old daughter and I share our ebay business. But only my social sec.number is used in paypal. She is more of a partner than just an employee. How do I handle this.

    • profile image

      couponsworld 5 years ago

      Hi,

      Good information on tax preparation. Good choice of squidoo to select it as LOTD. Even i had this monthly hassle of tax. But now all thanks to Turbo Tax Discount Coupons. to save my expenses.

      Regards

      Carol Dsouza

    • Wednesday-Elf profile image

      Wednesday-Elf 5 years ago from Savannah, Georgia

      Very helpful article. I'm just beginning to sell on eBay and am glad to have these facts. Thanks.

    • profile image

      mdeakub 5 years ago

      The content is superb. Highly helpful even for experienced eBay business people. Carry on!

    • goldenrulecomics profile image

      goldenrulecomics 5 years ago

      nice lens!

    • priscillab profile image

      priscillab 5 years ago

      Wow- I was just saying today that I wish I knew someone who could answer my questions and I found the answers here. Thank you. I will be revisiting this lens again.

    • profile image

      anonymous 5 years ago

      @Wednesday-Elf: You should consider other options as well. I would try to sell on craigslist then move on to ebay if your not getting any hits. Craigslist is free and just as good, I talk about posting it on craigslist posting tipsalso to help new sellers.

    • profile image

      eazy20 5 years ago

      owed this year. would have bought myself a laptop if I did not owe.

    • JoyfulReviewer profile image

      JoyfulReviewer 5 years ago

      Thanks for sharing all these helpful tips and resources. ~~Blessed~~

    • collierlewisjew profile image

      collierlewisjew 5 years ago

      very helpful! thank you so much!

    • craig57 lm profile image

      craig57 lm 4 years ago

      Thanks for the helpful tips!

    • profile image

      Hashuk 4 years ago

      thanks for the useful tips

    • TheFreeLife profile image

      TheFreeLife 4 years ago

      Very informative lens! Thanks for taking the time to put this on here!

    • profile image

      mouse1996 lm 4 years ago

      Great information. I'm not planning to sell on Ebay but this information is very helpful for what I do plan on doing.

    • Mr Criminology profile image

      Bigwas 4 years ago from Philippines

      I merely want to buy from eBay but its nice to know things cited above for who knows I might sell one day

    • Vikk Simmons profile image

      'Vikk Simmons 4 years ago from Houston

      Looking for info on how to handle personal items and it looks like you may have answered it.

    • profile image

      katherined 2 years ago

      I need help with this too! Thanks. BTW, if anyone needs to fill out a 1099 rules form, I found a blank form here http://goo.gl/Ne6JWW

    • profile image

      Johne667 21 months ago

      Regards for helping out, superb information. bedckkakbdde

    Click to Rate This Article