IRS May Consider eBay Sales Taxable Income
Posted on Mar 29, 05 12:41 AM PDT
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| I'm surprised that this did not happen before. (Co-published with gadgetopia) |
"The big issue is whether you're doing it as a business or not."
The IRS can apply a list of nine indicators that might prove whether someone's online auctions amount to a business. These indicators include evidence that the taxpayer depends on the income, acts in a businesslike manner, or puts enough time and effort into the activity to suggest a profit motive.
[...] If someone is selling the junk that is collecting dust in a garage or basement, then that person probably is getting less than he paid for it - no profit here. But if someone is buying goods in bulk from a wholesaler and hoping to make a couple extra bucks reselling each one, then that person could have just started a profitable business, Fooden said.
Via Drudge.
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