eBay Sales Tax

[ragtop12]

Some of you may remember me, some may not. Been out of the hobby for 2 years or so due to some personal issues. Regardless I am back. I Just sold some stuff on eBay and noticed that there was sales tax automatically added. How does this affect sellers? I know a couple years ago I didn't have to report anything to the IRS since I didn't make enough or sell enough. Anyone know how this works now? Will I need to report all sales? Unsure how this works.

Thanks for any information!
Obed

 

[bfd13]

Hey Obed;
Welcome back! I'm not an Ebay seller, but always enjoyed our deals in the past.
Dave

 

[ragtop12]

Hey Obed;
Welcome back! I'm not an Ebay seller, but always enjoyed our deals in the past.
Dave

Thanks so much! I'll be getting back to things on here also. Need to get things organized yet from two moves and a third move coming up yet. Oy.

 

[cmcjr99]

as you have already noticed , sales tax collection and payment is now done automatically by ebay...that has still not gonme into effect for all states , but most are on board already...

as or income tax , , when ebay and pay pal were owned by the same people , they reported sales to the irs only when you reached two thresholds : 100 sales AND $20,000 in sales...while i'm not 100% certain , i THINK those numbers are still accurate ...if you fall below those numbers , the responsibility to report falls upon the individual...

now for the murky part that i used to know details of but am no longer up to date on...depending on the frequency , quantity , and size of your sales , they can be classified as a business or a hobby which affects what must be reported and what doesnt have to be reported...i THINK the deciding factor was that if you lost money for x consecutive years it would be deemed as a hobby but that if profits were turned it was viewed as a business...i would recommend speaking to a tax specialist just to be sure...

 

[ragtop12]

as you have already noticed , sales tax collection and payment is now done automatically by ebay...that has still not gonme into effect for all states , but most are on board already...

as or income tax , , when ebay and pay pal were owned by the same people , they reported sales to the irs only when you reached two thresholds : 100 sales AND $20,000 in sales...while i'm not 100% certain , i THINK those numbers are still accurate ...if you fall below those numbers , the responsibility to report falls upon the individual...

now for the murky part that i used to know details of but am no longer up to date on...depending on the frequency , quantity , and size of your sales , they can be classified as a business or a hobby which affects what must be reported and what doesnt have to be reported...i THINK the deciding factor was that if you lost money for x consecutive years it would be deemed as a hobby but that if profits were turned it was viewed as a business...i would recommend speaking to a tax specialist just to be sure...

Thanks! I am finding similar information on my search though the internet. Thanks for taking the time to reply

 

[Loyalty32]

Obed! Welcome back! See you around the boards!

Thanks
Craig