albertabrightalberta
Regards,
@notactive2021 wrote:You are playing with fire. Not only are they easily able to make the connection, they might think you are attempting tax fraud. It's really easy to file it yourself at the end of the year. You cannot write off shipping costs, but you may write off materials. Such as cost of envelopes ect. Whoever told you that you could is wrong and as a result taxes were done in error. In my state, I only am required to charge sales tax to customers in my own state. Idk the law for that in your state. Either way, if you are selling routinely on ebay then you need to report it.
You really need to verify the information you're posting.
You're giving inaccurate tax advice and "authenticating" fake Coach bags as authentic.
You might want to look up the ebay policy about advertising outside websites within listings.
@sg51 wrote:As for reporting taxes, sales from ALL IDs are considered taxable income.
Not quite.
All profits are potentially taxable income.
But not all sales, let along all money arriving into a paypal account is profit. If it's not profit, it's not taxable income, nor is it required to be reported by the payee to the IRS.
The 1099-K which is issued, or not, by Paypal, says nothing at all about the tax status of the money. It is not required by law to account for the money on one's income tax filing.
However, having received a 1099-K, but not reporting it on, say, schedule C, is an invitation for the IRS to send a letter asking what is going on, or even initiate an audit. Especially if it's a substantial amount.
In PA technically anyone selling anything within the state is supposed to report it both as income as well as pay the State Sales tax ... but do you think all those yardsalers do that ... errnt, no way to police it. Used cars when sold have to have the sales tax paid and EVERYBODY does that, that's easy, every title transfer is processed through the state office so they KNOW and can ploice it.
My opinion is that tax should ONLY be charged once on an item and that would be at the point of Retail sales. Anything used should NEVER have tax levied against it, period. But sadly, that's just my opinion AND the tax is just another way for government to sqeeze blood out of the old turnip ...
@partial*eclipse wrote:I thought this thread was about income tax; not sales tax.
Yes, sorry for the minor side bar comment on sales tax ... glad I didn't go off on a bigger tangent.
@sg51 wrote:In PA technically anyone selling anything within the state is supposed to report it both as income as well as pay the State Sales tax .
It's implausible that a state would tax gross sales as income. Profits are income. Not sales. I think there's a confusion here between the various tax authorities means to insist on accounting, which they can surely pursue, vs actual legal requirements involving income tax WRT unprofitiable sales.
Indeed, sales tax states tax the entire sales amount, even on used items. However, in most states, I don't know about PA, there is a de minimis line below which sales are not required to be reported nor sales taxes paid. Most yard sales fall below the de minimis line.
Yes, there is a minimum, I think its around 500 bucks if memory serves but could be wrong ... but lol, most people have like one or maybe two yardsales a year right? BUT some people just set their homes up and have one every week! Calling them yardsales when in fact they have a little weeeknd thrfitshop thing going on. Years ago, before buying a house, we rented an apartment in a small town and learned that the burough allowed ONLY like two or three yard - garage - porch sales a year AND you had to register to get a permit to display the day of the sale. This apparently grew out of people having what I described above ... a perpetual weekend yardsale! But I digress, this thread is about income tax.
@sg51 wrote:In PA technically anyone selling anything within the state is supposed to report it both as income as well as pay the State Sales tax .
It's implausible that a state would tax gross sales as income. Profits are income. Not sales. I think there's a confusion here between the various tax authorities means to insist on accounting, which they can surely pursue, vs actual legal requirements involving income tax WRT unprofitiable sales.
Indeed, sales tax states tax the entire sales amount, even on used items. However, in most states, I don't know about PA, there is a de minimis line below which sales are not required to be reported nor sales taxes paid. Most yard sales fall below the de minimis line.
Oh, just to add, the 6% PA Sales tax is levied against both Item AND Shipping (yes the total) BUT, is only required to be remitted on shipments within the state. So if we ship out of state we do not owe tax on that (oh, but I am sure that day is coming right?!?) We have a tax ID number which allows us to NOT pay sales tax on items we purchase for re-sale. When we report our quarterly taxes we have to give the gross sales total (which includes shipping paid) and then break that down to PA shipments.
So yes, I know what is coming, the state will see all those out of state shipment dollars and salivate on the additional amount of $$ they can make if they tax ALL sales, not just in state sales. For the first half of 2017 our IN-STATE shipments were less than 10% of the total business we did on two IDs here.
