Improve Your Credit Score in 2009Bad credit got you down? Make 2009 the year to improve your credit with a few easy steps. No, there isn't a quick fix to your credit problems, but by...Try Using Cash to Control SpendingIf you're like most people, you use plastic for many of your daily purchases. Since more places take credit or debit cards and many of these cards offer rewards or...Consider Online Banks for Higher Interest RatesStock market got you down? Looking to put more money away in case of an emergency or job loss? If so, you've probably been thinking about stashing more money away...Adjust Your Tax Withholding for 2009We're still a few months away from the April tax deadline, but that doesn't mean you should put off tax planning today. One of the easiest things you can do...Should You Refinance Your Mortgage?Mortgage rates have fallen quite a bit in recent months, so a common question is whether or not you should consider refinancing. The benefits are easy to understand. The lower...The 5 Biggest Mistakes When Buying a CarFor many people, a vehicle is a necessity. We often depend on our vehicles to get us to and from work every day, transport children to events, and even for...The Importance of Saving for a Down Payment on a HouseWith the current credit crisis and lenders tightening lending standards, it is becoming more important than ever to save up for a down payment on a new house. If you...Giving the Gift of Education this Holiday SeasonOne of the greatest gifts for a child is money to help fund a college education. College is becoming more expensive while also a necessity for many career paths. You...
wants its chunk of change and knows you are out there.
I mention EBay, but you should be clear that you have to report earnings from any auction site. Obviously, EBay is the biggest. So, what are the rules?
The issue with online auction revenues generally comes down to profit and loss. If you are making money doing it, you need to pay income taxes on the earnings. If you are losing money because you are essentially having a garage sale, to wit, selling for less than you bought the items, you do not. Of course, the IRS doesn’t let you claim any loss from this, but who said the government was fair?
If you have a full blown internet auction business going, you are going to have to report the earnings on your personal taxes. This typically will be done through Schedule C, which is designed for people with sole proprietorships. If you formed a business entity for your auction efforts, taxes should be handled as they normally are for that particular business entity, to wit, file corporate or partnership returns.
Obviously, there can be variations the above situation depending on the nature of your business. The point of this article is to simply let you know the IRS has discovered auction sites and expects you to report any earnings. If you fall into this niche, you might want to sit down with an accountant to get your situation sorted out.
Article Source: http://www.Article-Warehouse.com
Richard A. Chapo is with BusinessTaxRecovery.com - providing information on dealing with your back taxes.
Here are some more estate planning articles...
