Do we have to pay taxes......?

stansoft

Registered Member
#1
Got your attention? I know! What i wanted to ask is, let's say I sell an unusual item on ebay for 20K, my question is, do I have to pay taxes from the 20K or not? From what I know, if you have a store on ebay, and sell stuff, then you have to pay taxes, but if you sell/buy things as your hobby, you don't! Maybe you know, something I don't?
 

Mirage

Administrator
Staff member
V.I.P.
#2
If you sell things and come out even or make little money, then technically you still have to pay taxes, but eBay won't report it.

If you sell for large amounts or money, for example, 20K, and you don't pay taxes on that as income, you will go to jail. :D
 

leopard22

Registered Member
#5
OK, I'm not a tax attorney but I used to play one on TV - dumb joke - the truth is that I used to work for a tax attorney, so I know the answer to this one.

Andrew is correct (again! does he ever get tired of being right?? teehee). If you want to call it a hobby, you can't make any money at it (or even break even). Even if you lose money, there is a fine line between what the IRS will class as a "hobby" and a "business", so if you are making money at what you are doing, it is in your best interest to include it in your tax return and pay whatever you owe.

It just isn't worth it not to play by the rules where the IRS is concerned. They can do so many nasty things to you without having to follow the same rules as the police have to, like freeze your bank accounts, put liens on all your property and THEN tell you they are investigating you for tax fraud. Innocent until proven guilty? The IRS has their own court that is totally separate from the rest of the courts in the land and different rules of evidence, etc. I could go on and on, but I learned by working with a guy who had several clients who were disputing million dollar plus tax bills that it just isn't worth it. You're going to wind up paying a lawyer a lot of money and the IRS has the deck stacked against you. At best they can make your life miserable and I don't even want to say at worst ...

So, if you make money, pay your taxes. You'll sleep better and you won't have to worry that one day you'll come home and find a padlock on the front door of your home.

Sorry to be so tough talking, but the risk really isn't worth the relatively small amount of money you will save. Millionaires may disagree, but they have all sorts of legal loopholes to get out of paying tax anyway, which the average person making some money out of self-employment don't have access to.