eBay

musicandmore77 · ‎01-11-2023

Hello, I've been going through my Ebay sales for the year while preparing for tax season and I came upon a question. Around August or so I started using spendable funds from my sales to purchase things from Ebay such as shipping labels and occasionally products for myself.

For example: I sold something for $50 and I have $50 of spendable funds in my account. I then purchase something for $25 using spendable funds. I transfer the remainder: $25 to my bank account. The amount of income to report on taxes would still technically be $50 correct? Or would it only be $25 since I was only paid with real money I could spend elsewhere $25. Ebay spendable funds are only usable on Ebay so I had this inquiry.

buyselljack2016 · ‎01-11-2023

The $$ process is what you will deal with. Spend on eBay, or send to your checking has no bearing on the total.

lamber9347 · ‎01-11-2023

@musicandmore77 Your income remains the same. You can deduct your expenses, such as shipping labels in the appropriate section of your tax filing. Just like if you received a paycheck from a 9-5 office job. Your income remains the same, where you choose to spend it is only relevant if you are spending funds for business purposes, business travel, or donations, etc. So, for your example you would list the full $50 as income then disclose your expenses where required....

lacemaker3 · ‎01-11-2023

@musicandmore77 wrote:
Hello, I've been going through my Ebay sales for the year while preparing for tax season and I came upon a question. Around August or so I started using spendable funds from my sales to purchase things from Ebay such as shipping labels and occasionally products for myself.

For example: I sold something for $50 and I have $50 of spendable funds in my account. I then purchase something for $25 using spendable funds. I transfer the remainder: $25 to my bank account. The amount of income to report on taxes would still technically be $50 correct? Or would it only be $25 since I was only paid with real money I could spend elsewhere $25. Ebay spendable funds are only usable on Ebay so I had this inquiry.

The form 1099-K includes all funds that are processed into your managed payments account, based on the date they are processed into your managed payments account. The date that you use, or withdraw the funds, or when they are sent to you as a payout, does not matter.

That date that matters, the date when you received the income, is the date that the funds were processed into your managed payment account with eBay. It doesn't make any difference how long you leave the funds sitting there in your account.

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794