How much can I sell without adding it to my income taxes?

[jthole]

How much can I sell per year without adding it to my income taxes?

I live in Minnesota, if that matters.

[klhmdg]

Nothing .... all sales are considered income

[chapeau-noir]

Don't forget to use all of your legal deductions!

[monica-sells]

to be technical....you can sell as much as you want

all that matters is what part of that is taxable

in other words, if you sell 1000.00 worth of stuff, but your costs/deductions are 1000.00 your taxable income is ZERO

[kensgiftshop]

None, you're supposed to report all your income.

[umccars]

...$599...

[rugerskick]

If your items are being sold at a loss, it won't affect your income at all.  You will have made no profit.

[theteamsetguy]

@jthole ,

In most cases you take gross sales which includes any shipping fees you collected from the buyer, subtract ebay fees, shipping fees, mileage driven to the post office, costs of the items, and etc. You will need receipts to show the cost of your items. 

ANY income  whether is $5.00 or 5 million dollars after subtracting costs of your sales is taxable at both the state and federal label. Just because you don't get a 1099 doesn't mean you don't have to report your income. The IRS specifically mentions this.

[ebooksdiva]

@umccars 

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@umccars wrote:

...$599...

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Even $599.00 amount of income should be declared on your taxes. Depending on what your business expenses are it may or may not be taxable, speak to a tax professional.

[cashmeredelight]

total is not based on sold prices but Ebay also adds in the shipping cost and taxes paid by the buyer. This makes the amount look great to the stockholders but sellers realize the amount is fake.

[nobody*s_perfect]

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@cashmeredelight wrote:

total is not based on sold prices but Ebay also adds in the shipping cost and taxes paid by the buyer. This makes the amount look great to the stockholders but sellers realize the amount is fake.

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If you get a 1099-K from eBay, it includes the buyers' total payments for the item and for shipping, but not the sales tax amount.  This system is what the law requires; it's not something that eBay has chosen to manipulate.

[dnasilver]

Without knowing what other income you have no one can give you a real answer. If you have zero income now, you could make up to your standard deduction before Federal income Tax kicks in. . 

[1786davycrockett]

@jthole 

You can also deduct the payments that you are no doubt paying for the use of the Charlie Brown character as your identifier on your eBay site.

You ARE paying for that image -- aren't you?!?

Or are you side-stepping that issue, as well?

[kensgiftshop]

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@umccars wrote:

...$599...

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Where did you come up with that number?

[caldreamer]

Minnesota is same as any other state...IRS requires that you report every dollar earned whether you get 1099 or not.    You report "gross sales" to IRS and then deduct business expenses (EBAY fees, shipping expense (cost of printing labels), returned merchandise, cost of goods, mileage, packing supplies, office supplies, etc).   If you have home office (dedicated to EBAY) or you store merchandise in your home you can also deduct % of your rent & utilities.  You only pay income tax on "net amount" after all business expenses are deducted.

EBAY has "easy to read" 1-page report that shows YTD totals for (orders, returns, EBAY fees, shipping expense).   To print report go to Payment, Reports, REPORTS (NEW) and select LAST YEAR.   This report will be very helpful during tax time.

You will be responsible for keeping tracking of other expenses and also inventory sold.   You will need to provide tax accountant with cost of goods amount for:

BEGINNING INVENTORY on hand - Jan. 1

ENDING INVENTORY on hand - Dec. 31

If you have never filed "business taxes" before I suggest you consult a tax accountant.