# Ebay sellers or any one making a profit.



## Plow Boy (Jan 1, 2004)

Wow, I thought about selling on ebay but after watching this my head is still spinning. If your selling on line anyplace this is a must watch for you. 
Watch the whole thing then post your thoughts.

[ame="http://www.youtube.com/watch?v=w8713VUfBFc"]http://www.youtube.com/watch?v=w8713VUfBFc[/ame]


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## Belfrybat (Feb 21, 2003)

It's almost an hour and a half long! Why not give us a brief synopsis so we can comment?


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## Plow Boy (Jan 1, 2004)

If you run a business on line you should watch it. Think I will take one step at a time.


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## katheh (Jul 21, 2012)

I have been selling online since Ebay started ('95 I think) and all I can say is DO NOT take your online-selling-business-running advice FROM Ebay or from Ebay-sponsored events.

Figure out your business model, meet with your tax/financial advisors, then decide if selling online can be profitable for you.


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## Plow Boy (Jan 1, 2004)

That is one thing he says.. is to get with your tax people and your lawyer for help. He says he doesent work for ebay but he does give some great advise.


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## bluemoonluck (Oct 28, 2008)

Plow Boy said:


> That is one thing he says.. is to get with your tax people and your lawyer for help. He says he doesent work for ebay but he does give some great advise.


Sure, if you're making 6 figures a year selling on eBay you should probably have tax people, or even a tax atty. But really, for most of us who are making a few hundred or a few thousand a year selling on eBay, that's ound:

Selling online as your full-time job is like owning any other small business. Selling online here and there is like having a yard sale a few times a year. Big difference.


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## katheh (Jul 21, 2012)

Plow Boy, that speaker is a long-time shill for Ebay. He is well-known in the industry. He does not "work" for Ebay but he is a paid speaker at their road show events. There is no effective difference than if he did work directly for Ebay.

Everyone else, there is no reason to watch this video. An accountant can give you appropriate advice in a 30-minute phone consult.

Totally agree with Bluemoonluck. There is a huge difference between making a full-time living with online sales and occasionally selling your "garage sale stuff."


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## Plow Boy (Jan 1, 2004)

Thanks for your input everyone... So they send you a 1099 if you make $20,000 or more on ebay. If I make $19,000 and I don't get a 1099 I don't have to turn it in?* NOT!! I* think even a small profit has to be turned in.. Remember you are selling on line, ebay and paypal have records and if you get audited it's on your computer and theirs for the IRS.
Is there any top sellers who turn every thing in out there to help us on this? Do you have to turn everything in even if it's a few hundred??


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## bluemoonluck (Oct 28, 2008)

I've heard that if you make $600 or more you get a 1099, but if you even make $1 babysitting your niece you're supposed to claim that on your taxes :shrug:. Just because you don't get a 1099 doesn't mean you don't have to claim what you make.

It's not hard - there's a place on the online tax filing software I use that asks for you to list any additional income that you made that year that you don't have a form for. So you just track how much you make at your random money makers, and enter the # there. Simple.


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## katheh (Jul 21, 2012)

For online sales such as Ebay, Amazon Marketplace (and any other 3rd party credit card processors you may use such as Square).

They will issue a 1099K form to you if the total of payments collected on your behalf is BOTH 200+ transactions in number and $20000+ in gross receipts. Not either/or. It must be both or the form will not be issued. For example this year I received one from Amazon but not one from Ebay due to sales fluctuations between the two sites in my specific business practices.

That 1099K is issued on the GROSS RECEIPTS collected on your behalf. You have to bookkeep to be able to justify deducting final value sales fees, payment portal fees, shipping, your overhead, etc.

But my point is until you exceed BOTH 200 transactions and $20000 in gross receipts with each payment processor, there will be no paperwork filed with the tax man beyond what you yourself report on your return.


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## katheh (Jul 21, 2012)

Also we need to remember that all laws, including tax laws, are subject to interpretation within ones own specific tax situation. There is no hard and fast law that says every penny that comes into your household is subject to taxation, or subject to examination/review for taxation, because it's not. Intent or effective intent (did you intend to make a profit? Or did you even without specific intent eventually over time form a pattern of making a profit?) Of course to answer those questions you must know what "profit" means, and it is not "what I paid minus what I sold it for."


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## joebill (Mar 2, 2013)

We make a living both online and by direct dealer sales. We keep rudimentary books on both. You have to, to even understand what you are doing as a business. 

If you are selling your own personal property online, I doubt it's a big deal, 'cause it's probably stuff you bought previously for more than you are selling it for, in other words, probably a losing proposition.

I certainly agree that letting Ebay run your business or tell you how to do business will benifit Ebay more than it will help you. Their site is a money-maker for us, but we reap higher profit percentages from stuff we sell on our own site or almost anywhere else.

As for lawyers and tax accountants? They are a complete drain on most small businesses, with no redeeming qualities. Notice I said "most". There are exceptions, but if I was looking at a business that made me think I was going to need a lawyer, I'd seriously figure that either it was a complete gold mine or I shouldn't touch it at all. 

Since 1976, each year we have gone to an office supply store and purchased a red-bound ledger and filled in the blanks, per the advise of a guy from SCORE all those years ago. It takes my wife several hours to get it all together at tax time and fill it out, then file.

If, however, anybody thinks that doing business online is a great way to evade taxes, think again. It's all out there for anybody to see. Your very Ebay feedback rating reveals sales to anybdy who wants to look at it. 

If you have not been in business before, though, you will find the rules about deductions and stuff to be pretty much in your favor, as opposed to being an employee. Mileage deduction for small business is a BIG help if your vehicle is involved in your business. Just don't try to play the IRS for saps. With OR without a lawyer and accountant. do that, and you probably WILL need a lawyer.....Joe

PS, one other thing. In most states, you are responsible for sales tax on items you sell online within your own state. I had to prove to my state that almost all my items were sold online or direct delivery resale to other states. Otherwise, I would have been responsible for paying about 6% of my gross sales to my state.....Be carefull out there!.....Joe


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## Plow Boy (Jan 1, 2004)

Thanks everyone. There is profit in buying at yard sales, Goodwills, estate sales and flipping them on ebay and other online sites. I just want to learn to do it the right way. I'm getting ready to retire and this old man want's some extra income to help pay for my health insurance for my wife and me.


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## joebill (Mar 2, 2013)

Plow Boy said:


> Thanks everyone. There is profit in buying at yard sales, Goodwills, estate sales and flipping them on ebay and other online sites. I just want to learn to do it the right way. I'm getting ready to retire and this old man want's some extra income to help pay for my health insurance for my wife and me.


One extremely low volume but high profit endevor that I have engaged in online is dealing rare books. If you can figure a way to check the title online at Amazon for pricing, you can buy $1 books at a thrift store that will sell in the $100 range on Amazon. You can read the titles on a cell to somebody on a computer.

usually, these are non-fiction "how to" type books, and there might be only one listed at Amazon. You can chop the price by a couple of bucks and sell yours. Although it might take a month or two, the profits are disgracefull ....Joe


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