Paying Tax on eBay Profits

  1. Sign up to become a TPF member, and most of the ads you see will disappear. It's free and quick to sign up, so join the discussion right now!
    Dismiss Notice
Our PurseForum community is made possible by displaying online advertisements to our visitors.
Please consider supporting us by disabling your ad blocker. Thank you!
  1. How does it work? When you are buying and reselling? Not when you are selling used items. Thank you for any info, or point me to somewhere I can learn about the ins and outs of it.
  2. From what I've read, I know that Paypal and other credit card purchase facilitators will start reporting payments to the IRS in 2011 that are more than $20,000 in a year. (This is according to the IRS website). Ebay currently doesn't report to the IRS. The primary issue is, are you making a profit? Only the net profit is taxable. But good record keeping is important. If you can't prove what you paid for an item, the IRS will give it a value of $0 so anything you sell it for is profit.