on 01-12-2013 09:36 AM
Does ebay/paypal report my account activity to the I.R.S.? I do not have an ebay store or a tax id #. I have heard that they don't report your activity unless you have 500 transactions AND sold $20,000 in a 1 year period. Just want to know what to expect come tax time.
on 01-12-2013 09:50 AM
See your local IRS office for information.
While thinking about that, read this:
and PayPal's info, here:
• If your activity is a HOBBY, report your income on line 21, Form 1040. You can´t deduct expenses in excess of your income, and you can only deduct qualifying expenses if you itemize deductions
• If you consider your sales on eBay as a BUSINESS, you must fill out the IRS 1040, Schedule C, at a minimum. You may deduct expenses.
• If you are selling junk from around the house, those casual sales are usually not taxable.
• If you are buying things for resale on eBay, you are a business, and your income from the business is taxable.
The IRS says:
"Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit."
on 01-12-2013 12:14 PM
It will not be from eBay, eBay does not process payments.
It will be from any payment processor such as PayPal, Half.com, Amazon and the like.
on 01-12-2013 09:42 AM
the question was..."Does ebay/paypal report my account activity to the I.R.S.?"
you will get a 1099 (and so will the IRS) when you have 200 or more transactions AND $20,000.00 or more in sales for any calendar year.
on 01-12-2013 09:45 AM
It's over 200 transaction not 500. You better sit down and do some bookwork quick. You are selling items for alot of money and you have to be purchasing inventory or you were spoiled as a child.
There is no doubt that eBay turns over all of the activities of a Seller to the IRS no matter what. Don't confuse the ruling for issuing a 1099K to Sellers through Paypal. That appears to be 200 transactions and 20K.
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