will i have to pay taxes if i sold over 200 items

[toooldtorock]

Yes if you hit the dollar threshold for yearly earnings (including your day job). The $ amount where you have to

start paying taxes is relatively low.

Check with a tax pro for further details.

[octochick]

You will be able to deduct all your expenses, so keep good track of those. Including the initial cost of your items,mailing costs, packing materials, ink for your printer etc... and of course ebay and paypal fees! If you work from home, as I am sure most of us do, you can also deduct a portion of your rent or mortgage... 🙂

[duchess-at-speakeasy]

Just as with wages from a job, you are required to report income from self-employment to the IRS (and to your state if it imposes an income tax) -- regardless of how many items you sell.  The total dollar amount is what counts.

Of course, your exemptions, itemized or standard deductions, various credits and deductible business expenses are part of determining your taxable adjusted gross income.  If your net self-employment income is $400 or more, you will have to pay both parts of the federal SE tax in addition to any income tax that may be due. 

~~C~~

[reallynicestamps]

It's not the number of items, it's the value.

More precisely, it is the profit you made from selling.

Your income (less business expenses) should be noted on your income tax form.

Any free advice is worth every penny you paid for it.

[david*42]

If you make a profit from your eBay sales, that is reportable income, even if you sell just one item. Most eBay sellers use Schedule C, which shows how you can deduct allowable expenses such as fees, postage, and the cost of purchasing the items you sell. Look through Schedule C and its instructions will help you understand how the IRS handles this. Here is the IRS page especially for online auction sellers:

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Tax-Tips-for-Online-Auction-Sellers

[wolfgang2204]

A lot of people misunderstand that paypal reports to the IRS if you haave more that 200 transactions or $20,000.00 in transactions and you get a 1099 from the IRS. If less than that then you need to report it yourself. So to speak.

You'll need to see a tax specialist for your area.

[c_tuna3141]

If you made a profit, you probably have to pay taxes no matter how many (or how few) items you sold.

[dhbookds]

 if you haave more that 200 transactions or $20,000.00

Wrong.............200 + $20,000...............

[msha3839]

'..and you get a 1099 from the IRS..."

Not from IRS. From PayPal.

[sockmonkeydave]

Who is this IRS you speak of? i winged a man from the census, pa says I can shoot any one from the bank  "O Brother, the movie"

[luckythewinner]

OP, 

The number of transactions you have has absolutely nothing to do with whether you pay taxes. 

There are people who sell 1 item who owe taxes, and there are people who sell thousands of items who do not pay any taxes. 

If your income is taxable income, it must be reported. 

Unlucky

[tryno2]

Careful on deducting part of your rent/mortgage as a home office expense.  The IRS rule reads that 

1. Regular and Exclusive Use.

You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room.

Focus on the word Exclusive, if you use the same area for general internet browsing, as an exercise room, as a bedroom, dining room or whatever then you wouldn't be able to take the deduction.  

[cynthealee2]

---

@tryno2 wrote:

Careful on deducting part of your rent/mortgage as a home office expense.  The IRS rule reads that 

1. Regular and Exclusive Use.

You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room.

Focus on the word Exclusive, if you use the same area for general internet browsing, as an exercise room, as a bedroom, dining room or whatever then you wouldn't be able to take the deduction.  

---

AND when you sell the house you have to pay that money back too... (it's more complicated that the way I put it but basically that's what happens)

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Home-Office-Deduction

[gweding]

---

@tryno2 wrote:

Careful on deducting part of your rent/mortgage as a home office expense.  The IRS rule reads that 

1. Regular and Exclusive Use.

You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room.

Focus on the word Exclusive, if you use the same area for general internet browsing, as an exercise room, as a bedroom, dining room or whatever then you wouldn't be able to take the deduction.  

---

dont worry,if a home audit is coming, move all that stuff out of the room.

It is mostly common sense, first it must be the place where you earn your revenue, which ebay sellers do qualify,but not medical doctors who come home from clinic or hospital and use the room to do paper work or read medical journals.

second it must commensurate with your sales volume and nature of business  ,if you sell 200 collectible toy cars and collect 20,000 dollars and claim a foot ball stadium sized mansion ,it wont fly