Sunday, March 27, 2005

Sorry Dad...

This is just crazy- IRS May Consider eBay Sales Taxable Income

Some people sell items that go for $5.00 and maybe they will make $100 for the whole year. Paperwork for $5.00 items? Also, you can't forget how Ebay gets some of that money.

WASHINGTON - Hawking baby and children's clothes — along with some garage sale and thrift store bargains — on eBay helps Sunni Wojnarowsky bring in some extra money so she can afford to stay home with her two young boys. The additional dollars are great, but does she really need to hassle with the paperwork and report her small profit to the Internal Revenue Service? Her question, posed to the online auction site's discussion board for sellers, generated much advice — and more confusion.

"When you're working on the Internet, it's kind of a gray issue," said Bart Fooden, a certified public accountant in Woodbury, N.Y., who advises small businesses and individuals. "The big issue is whether you're doing it as a business or not."

(Link)