Does selling things online count as business income?

Discussion in 'Legal Issues' started by breakaway, Dec 10, 2007.

  1. #1
    It's not an official registered business, it's just selling t-shirts and stuff.

    If a person sells something on eBay do they have to report that as business income?
     
    breakaway, Dec 10, 2007 IP
  2. Jeff Blake

    Jeff Blake Peon

    Messages:
    32
    Likes Received:
    2
    Best Answers:
    0
    Trophy Points:
    0
    #2
    Technically, yes you do.
     
    Jeff Blake, Dec 10, 2007 IP
  3. browntwn

    browntwn Illustrious Member

    Messages:
    8,347
    Likes Received:
    848
    Best Answers:
    7
    Trophy Points:
    435
    #3
    In the United States, the money you make selling something is income and should be reported - included things sold on ebay, garage sales, etc.
     
    browntwn, Dec 11, 2007 IP
    NewTier likes this.
  4. jill_domains

    jill_domains Peon

    Messages:
    219
    Likes Received:
    15
    Best Answers:
    0
    Trophy Points:
    0
    #4
    Yeah true - especially if it is above the $600 threshold.

     
    jill_domains, Dec 11, 2007 IP
  5. Matbell

    Matbell Guest

    Messages:
    215
    Likes Received:
    2
    Best Answers:
    0
    Trophy Points:
    0
    #5

    its same everywhere in world, its called income tax

    anythin you earn will be taxed by your Govt
     
    Matbell, Dec 11, 2007 IP
  6. bluegrass special

    bluegrass special Peon

    Messages:
    790
    Likes Received:
    50
    Best Answers:
    0
    Trophy Points:
    0
    #6
    You don't always have to report it as business income, but if it is not reported as business income it needs to be claimed as personal income.
     
    bluegrass special, Dec 11, 2007 IP
  7. AstarothSolutions

    AstarothSolutions Peon

    Messages:
    2,680
    Likes Received:
    77
    Best Answers:
    0
    Trophy Points:
    0
    #7
    Certainly isnt everywhere in the world, for one not every country has income tax.

    If you are selling your own second hand goods then in the UK it wouldnt be considered income as it is just liquidating your assets but if you are selling new goods or buying goods and then selling them on it is then income and must be declared no matter how high or low the amounts are - of cause if they are very low then there may be no tax due but it must be declared (UK)
     
    AstarothSolutions, Dec 11, 2007 IP
  8. NewTier

    NewTier Notable Member

    Messages:
    2,201
    Likes Received:
    196
    Best Answers:
    0
    Trophy Points:
    250
    #8
    You can also deduct all the expenses with hosting and marketing, including traveling. :)
     
    NewTier, Dec 17, 2007 IP
    browntwn likes this.
  9. decoyjames

    decoyjames Active Member

    Messages:
    425
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    53
    #9
    Our you could elect Ron Paul... lol

    But I would claim it if I were you
     
    decoyjames, Dec 17, 2007 IP
  10. SEO Extreme

    SEO Extreme Peon

    Messages:
    264
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    0
    #10
    Yes, Ron Paul FTW! "I vote to get rid of the IRS all together" - YES YES YES!
     
    SEO Extreme, Dec 18, 2007 IP
  11. micksss

    micksss Notable Member

    Messages:
    4,427
    Likes Received:
    268
    Best Answers:
    1
    Trophy Points:
    285
    #11
    Wouldn't that be nice :)
     
    micksss, Dec 18, 2007 IP
  12. 2pencil

    2pencil Peon

    Messages:
    33
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #12
    If you live in the U.S. and you make over a certain amount, you may have to pay state taxes as well. The amount often varies from state to state. The nice thing about claiming your income as a business income is that you can deduct expenses. The bad thing about claiming your income as business income is that you need to pay social security tax, and that ain't cheap.

    If you don't make a profit after expenses over three years (I think this is right), your business is declared a "hobby," and you won't be able to use the income as business income. Check at irs.gov - if you can make out all the crap they have up there.
     
    2pencil, Dec 21, 2007 IP