Tax question - does eBay report to IRS

[margarets-art]

Since you were so helpful with my previous question, here is another one that has occurred to me. Does eBay send any sort of information to the IRS on how much you money a seller makes on art sales at the end of the year? Best to know that right off the bat. Thank you for your input. Margaret a/k/a Lois-Lane-48

[mreas]

I doubt if they send anything to the irs. You're not an employee or contractor for ebay. They don't give you a w-2 or 599. That's not to say they wouldn't comply with an irs request for disclosure of your gross sales should the occasion arise. Don't take my word for it.

[mreas]

That said, if you treat this like a business and keep track of all business expenses, you'll find you're not making any money anyway.

[poozybear]

I don't think they send anything to the IRS. You're responsible for reporting what you make on eBay (or not). I would imagine if you have a resale license and are running an actual, profitable business, then you would have to report your income, but small-time "flea market" sellers . . . I wouldn't worry about. -- Kathy

[drawdog5]

A 1099 is the only thing I can think of that might be required, but I sure don't recall providing eBay with my SSN or a tax id number, which would lead me to believe they don't report. 1099's are submitted to the IRS when someone is paid $500 (I think) or more in a year as a sub contractor, consultant, etc. I'm not an accountant, so this advice is worth exactly what you paid for it! I do keep track of all my sales and expenses on eBay/PayPal as I do report my income/expenses on Schedule C as a self-employed artist. -- -Ann "If The Flintstones has taught us anything, it's that pelicans can be used to mix cement." ~ Homer Simpson -- Edited by drawdog5 at 06/14/2008 2:23 AM PDT

[drawdog5]

I was curious, so I googled and found this discussion: www dot savingadvice.com/forums/general-discussion/35075-income-tax-ebay.html -- -Ann "If The Flintstones has taught us anything, it's that pelicans can be used to mix cement." ~ Homer Simpson

[stellarartbytalbert]

I stay on the up and up with the IRS. I've always got a business partner (big brother). I just don't want trouble some where down the road. Karen

[blueskyfarmer]

Having an IRS Audit Monday. I'll see what I can find out. However, I will probably be answering from jail...

[mreas]

Buy lots of art before you go.

[mreas]

Nothing can brighten up a stay at the Graybar Hotel like a little original art.

[blueskyfarmer]

I'm just hoping they recognize all these ACEO purchases as major business deductions.

[jjohnsonlowe]

Blue, my dad owned a store -- one year the IRS decided he OWED them money -- something like 67¢ -- so they threatened to put a lien on the store. My dad kept immaculate records -- kept on "trying" to convince them that they had made a mistake -- finally gave up and paid the 67¢ WITH a penalty -- maybe 10¢. About 6 months later, he got a check from the IRS for the 67¢ -- no apology. My point??? GOOD LUCK!!!! --

[poozybear]

However, I will probably be answering from jail... They have the Internet in prison now. Who do you think has been bidding on our art? -- Kathy

[poozybear]

There's definitely a difference between running a business and selling off used junk. If you are claiming yourself as a freelance artist by trade, then it would be wise to report. But if you sell a used bicycle to someone on Craig's List, you don't have to report that as income. If I sell off a bunch of .99 flea market crap on eBay, I feel no obligation to report. But if I opened an eBay store, and was making PowerSeller level sales, I think it would be advisable to let Uncle Sam in on that. -- Kathy

[mreas]

I'm just hoping they recognize all these ACEO purchases as major business deductions. You'll have to move them from the MickMuseum to the farm office. Luckily you won't have to rent a truck to do it.