What is taxable interest?

[turtleswares17]

Acorn.com states taxable interest is "the money you earn on investments for which you're required to pay taxes". so is that the same as taxable revenue? Say I invest $300 in inventory to sell and it sells for $1000. (not including expenses) I've earned $700 so is that My taxable interest or do I subtract my taxes, fees, cogs and deductions and that it my taxable interest (which is the same as taxable revenue), Or am I way off which could be the case. Please no answers saying to ask a cpa if you don't have the answer than carry on no need to comment.

[monica-sells · Accepted solution]

You answered your own question. 

"...Or am I way off which could be the case...."

As far as your ebay earnings go, you should have NO TAXABLE INTEREST

it is not an investment as defined by general accounting methods. Forget you even read that.

What you have is taxable income.

In the example you supplied, the 300 is COG and 1000 is Gross Revenue

You deduct the 300, as well as the other 'expenses' to arrive at your net profit (taxable income)

[mega-ma-roo]

Small Businesses Self-Employed | Internal Revenue Service (irs.gov)

[dhbookds]

Are taxable interest and taxable revenue the same?  No........ are they both taxable.......Yes........

[dnasilver]

You have a lot of items listed. You are not a small seller getting rid of stuff in your closet. The laws changed greatly during the last administration. If you mess up because you do not understand basic terminology you are opening yourself up to be audited for as many years as the IRS wishes to go back. Think about that. Many people regret messing with the IRS after they have put liens on everything you own and put you behind bars for failing to pay the proper taxes for years in arears.