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eBay & U.S. IRS Update
- Thread starter ChazzC
- Start date
Interesting. So can you elaborate with example. If one has annual sales of 7K$, we take 7-5=2K which must be claimed as 'income' on your tax return? Assuming via your reference this is a USA (only) tax law but Ebay is complying with records & statements?
I'm not familiar with the CDN side of tax matters on Ebay & such. My understanding is technically 'everything' is subject to tax. Just whether its reported or claimed. Its the gift that just keeps giving. Once we become State-51, UPS will work like a dream LOL
I'm not familiar with the CDN side of tax matters on Ebay & such. My understanding is technically 'everything' is subject to tax. Just whether its reported or claimed. Its the gift that just keeps giving. Once we become State-51, UPS will work like a dream LOL
TorontoBuilder
Sapientia et Doctrina Stabilitas
In both the US and Canada though the forms just itemize the sales as gross income. If you are a regular seller whom has generated substantial gross sales of course you're going to itemize the cost to initially acquire the item sold or the material that went into the item sold, and offset the gross sales amount. So if I say sold a lathe for $4500 yet it cost me $5000 to acquire it I have a $500 loss. Or more if I counted storage related costs until I managed to sell the item.
But the whole affair would cost more than it is worth for casual seller, given the cost of accountant's fees. This is why it is best not to sell your used machine tools on ebay, and not to flip too many machines in a year in your quest to have a better shop. Pace yourselves
Reporting threshold in Canada has always been $0.01 in a given year. Not everyone reports their on-line income, but they ignore it at their peril. CRA has hired 2 million illegal immigrants to hunt down tax evaders.
All tongue in cheek, but nonetheless a very real issue. It's considered to be part of the underground economy.
For now, they are not hunting the one time sellers. But it's prolly next on their agenda.
I may have heard the numbers incorrectly at yet another financial clusterf**k hearing, but it was something to the effect of 52K cra tax collection personnel vs a similar/lower number in rapidly dwindling military. What does that tell you? And only a few billion slipped through the cracks with a handful of 'not to be named' companies under special circumstances, but we will hunt down mom & pops etsy craft store. Yeah, the 10 year cancer may be terminal. I should stop now.
Off on a tangent - I understand that when I sell something on eBay, I should be claiming that as income. However, what about reality - I bought a Busy Bee CT129 mill in 2010 for $1500, over the next 15 years I spent thousands of dollars on tooling, then sold it on Marketplace for $1000, including most of the tooling. So it should be a capital loss, not a profit. Unless we are also expected to consider depreciation, which opens up a whole 'nother can'o'worms and probably 200 more pages of stuff on my income tax forms. If you're a carpenter, every problem gets solved with a hammer and nails. If you're a politician, every problem gets solved by making more complicated rules.