North Carolina Facilitator Law Help

[rickey5191]

Can someone help?  I am new to selling and live in North Carolina.  I put up approximately 250 baseball cards and made approximately $6000 (did not imagine it would be that much by the way) and that got me thinking about taxes.  These laws are so confusing.  I don't plan on selling more and don't want a store front, i was just essentially cleaning out my closet. 

When i read the marketplace facilitator law it says "Marketplace facilitators and marketplace sellers having either gross sales in excess of one hundred thousand dollars ($100,000) sourced to North Carolina, including marketplace-facilitated sales and sales as a marketplace seller, or two hundred (200) or more separate transactions sourced to North Carolina for the previous or current calendar year (collectively “Threshold”) are engaged in business in North Carolina for sales and use tax purposes." 

I am clearly not over the $100,000 but i have more than 200 transactions, whatever that means (i'm assuming a seller paying through Paypal).  The law also says i need to register for a sales tax license, at least how i am reading this.

Most other states say "$100K AND 200 + transactions".

I understand i might have to mention that i had some new income but do I need to get a tax license just because i'm selling a few things from my closet?

This **bleep** is so confusing (probably on purpose) as they refer to everything as a business when i'm just an average joe selling some stuff i don't want around anymore.

thanks

[indigoresale]

eBay now charges the buyer sales tax and transmits it to the state.  I don't know when that started.  But that covers the sales tax.  You said you made $6000.  But if you deduct what you paid for them, your net profit is much less.  That would be a question for your CPA - do you need to file a schedule C or not.  If Paypal reported the income on a 1099, you definitely need to file a schedule C.  In your Paypal account look under Activity then Reports to find tax documents.  I did not have any in my personal account or in my business account so I must have been under their threshold of 200 transactions or $20,000 in total sales.   

[jamj1]

Indigo resale definitely has good information there.  I'm in TX but will be in NC soon.  I've been downsizing a 4800 sq foot home (and living style) that was that of an accumulator; had an eye and so acquired a lot. Loved & used most everything - but now time to sell it. It distressed me to think that on top of every other type tax I pay (sales, income, ad valorem thru the roof -no state tax in TX) that I would also be getting 'popped' for the 'income' portion on my ebay sales. As this has been described in the last 2 mssgs., the state already has the tax ebay pay to them (or we hope so!) and so the comptrollers or tax offices can gross that up to estimate what your sales were. And, unfortunately, we're (here in TX) paying tax on EVERY DOLLAR that comes in sans the ebay fees -including shipping.  So how is it when I paid $30 for two pieces of Herend, thinking 10 yrs ago I had a bargain, and I sell them for 'market' now at $15.  Or, just about anything with my inventory - now, market seems flooded and margins low on clothing, collectibles, bedding, goods in general (my experience.) For me, sales aren't happening if there's any healthy margin for me as seller. I didn't save all the early receipts (30 yrs of purchasing -and some for eventual sale.)  I have been advised by the tax office that do best one can at evaluating sales cost, and if the net profit is nothing...it is nothing. In other words, cost of goods sold approaches 100% of the gross sales.  Shipping s running about 62.8% of my selling expense; fees running over 32% of my selling expenses.  And, tax is paid into TX on the shipping collected, even though it is a complete wash to the numbers. Sometimes, I even, excruciatingly, misjudge and lose money on shipping. THAT has become a precarious area that needs the diligence of sellers (I guess "wrap early" and weigh?)  -- I can truthfully say that -as a whole - I can't see any real profit in ANYTHING I've been selling. (My time is free, obviously)  As ebay touts on occasion--"getting rid of stuff for a bit of extra cash?" ...."yes" and trying very hard to be aware of consequences -that's how I proceed.