eBay

overshopper81 · ‎07-16-2017

Last year i was reported to irs for sales...which when i did my taxes i went over because they do NOT break apart the shipping fees! So i had to manually break out each one for the accountant...so crazy

SO MT QUESTION IS... i opened another ebay seller and seperate paypal under my husbands info. So he is the seller. Does anyone know if since we are married they will make the connection? Does it matter? I cant find any tax people who know anything about paypal in my area....any advise would help

sin-n-dex · ‎12-22-2017

@partial*eclipse wrote:
According to posts I've sen here, they IRS will just send you a bill based on your adjusted total income; of course it's always a stupendous amount because none of the seller's expenses (postage, fees, COGS) have been deducted. They woud audit if you reported questionable deductions.

although I file taxes in Canada... this is true... major health issues for a few months (which kept me out of the forum for a while), and I missed filing a return. After 90 days, they sent me their version of what I should be paying, a grand total of $1300. That's more tax than income I have to pay taxes on in Canada (specifically this was an HST return, the term period was 30 days that I owed this money). It was sorted out by filing first, then calling to discuss. The CRA agent said when people don't declare what they should be, the government has to make decisions on what you owe and how much you made. The rule seems to be they multiply your average tax ten fold and that's what you get a bill for. I was told this never works out in the business owner's favour, so it's always best to file accurately from the start.

Cheers, C.

chipper01work · ‎12-22-2017

I think the mods are likely to get annoyed if they spend all evening locking down ancient threads drug out of the basement.

sin-n-dex · ‎12-22-2017

@partial*eclipse wrote:
@notactive2021 wrote:
... You cannot write off shipping costs, but you may write off materials. ...
Postage costs are a legitimate expense that can be dedcted on your Schedule C.

Arguing semantics (and I live in Canada, in case my info is inaccurate).

Here I collect $100 in shipping from customers and declare this as income, then I write off $100 in postage costs that are then deducted, leaving the net taxable income as sales (excluding postage).

Yes, I know you have other deductions, but what I'm saying is, you can't just say all the postage is an expense, you have to claim it, then deduct it.

Cheers, C.

sodelight · ‎12-22-2017

I'm not understanding this. If your already properly reporting your ebay income, why would you feel you need to open a second account basically using your husbands info. Unless your saying you DON'T plan to report income and are using his name to transact sales so you keep under the 20k paypal 1099k. If you've always filed as a couple, this may present a red flag as to why your now filing separately, of which you and your husband would both need to file.

It's illegal to try to evade taxes in this manner. You need to reconcile your sales, if you think doing it is too complicated, then stop selling and get a regular job. Opening an account in someone else's name, no matter if it's its a relative, in order to hide income is fraud on the part of BOTH parties. Everyone is expected to pay their fair share! I'm guessing there are millions of ebay sellers who don't.

6michael6 · ‎12-22-2017

Paypal is entitled to ask and you are entitled to stop using the service until they are reassured, in the new year, that you have not exceeded reporting limits and then, like every year, you may use it again. You are so dramatic, goodness...