Ebay Selling Do you have to pay taxes when you sell on Ebay?
Kristine A. McKinley, CPA July 5, 2007
If you sell items on eBay for a profit, then you should report your eBay sales, and you may owe income taxes on any profits. It doesn't matter if it's just a hobby or if you are trying to build a business.
Generally, any income you receive from all sources is subject to income tax unless it is specifically exempt by law (hint: eBay profits are not exempt by law). That means that a lot of activities that you might not think of as taxable, such as garage sale income, gambling winnings, and yes – eBay profits – are taxable.
You must file a tax return if your net earnings from self employment are $400 or more. You are self employed if you carry on a trade or business for profit. If you are selling on eBay with the intent of making a profit, then you are self employed.
To report your earnings, you should file Form 1040, and attach Schedule C or C-EZ. Schedule C is used to calculate your net profit or loss from your business, which is then reported on your Form 1040.
At this point, you may be thinking "I don't run a business; I just sell on eBay as a hobby". Unfortunately, income from hobbies is taxable as well. Even worse, you can only deduct expenses up to your hobby income, which means losses are not deductible.
There are several tax advantages to selling on eBay. Personal expenses, such as the use of your car, home or computer may become partially deductible, retirement savings plans can shelter part of your eBay income from taxes, and you may be able to hire your family to help shift income to members in a lower tax bracket. So even if you only sell a few items on eBay, not only are you required to report your eBay earnings, it may even help you reduce your income taxes by taking advantage of tax opportunities available only to small business owners.
Finally, there is a common misconception that if you did not receive a 1099 or W-2, you are not required to report your income. This is not true. All income is reportable, regardless of whether you receive a form or not. EBay is only a facilitator of the auction; therefore you will not receive a 1099 from eBay reporting your sales.
Another great article! What Should I Sell?
Copyright © 2007 Arstandcraftsdotcom.blogspot.com - an online arts, crafts, knitting and marketing Ebay business source. All rights reserved.
Thursday, October 11, 2007
What to Sell on Ebay.......Your Complete Guide to Auction Sales
Kathy AndersonJuly 8, 2007
It's a good idea to gain experience by being an Ebay customer first. That way you can learn what your customers will do and what they go through to purchase from you when they win your auctions.
Check to see what others do about shipping and handling and their other purchasing requirements. Get very familiar with how Ebay operates; their dos and don'ts. DON'T begin by going out and buying a bunch of wholesale products until you know your niche and/or know what you want to sell and how WHAT you have chosen does sell.......good or bad.
The best thing to start with is your own used goods; as I've mentioned before. Take shipping into consideration. The buyer will pay for shipping if you set it up that way. But remember they don't like papying those high shipping fees either. Keep things small and light weight. They really are the best and the easiest, for beginners at least. Paper products, craft supplies, etc.; things one pound and under makes life easier for you and the experience is invaluable. Selling small items, used and small gifts you have no use for any longer, etc. makes for low risk of any capital and all you'll risk is some small ebay fees.
Everything is for sale. Anything sells on Ebay. You might be surprised so spend some time searching and shopping on Ebay. Don't forget to check the "completed listings" box in the left hand column to see what things actually sold for.
Maybe you have a hobby or some interest that could bring in a few dollars for you. Hobby supplies or craft supplies can be just right if it's your interest. You don't need to sell high priced items to make some money. It doesn't need to be large pieces of painted furniture, outdoor patio furniture or heavy kitchen faucets!
Don't go out and buy hundreds of the latest hot item selling on Ebay. There's already too many people doing just that. You can sell these items and this type of thing later after you've gained some experience. There's plenty of import companies to buy directly. Wait and do that after you've got some experience under you belt.
It's always good to know something about what you sell. There's lots of collectors buying on Ebay. People collect just about everything. Become knowledgeable about a few collectibles. The Internet is an endless source of information.You can then, after some experience, try a larger dollar item. Remember you have to sell a lot of small priced items to make enough money to call it a real income. You'd need to sell 100 of a $2.00 item to make $200 or five $40 items to make $200. Less work for the same dollar amount.
Sometimes selling sets can bring you more money than parting out and sometimes visa versa. For instance, a set of dinnerware sold by piece may bring in more money that selling the set. Sometimes the whole set will sell better. Sometimes lots sell better when it's sold in categories. Keep same kind together. Do your homework and see how what you want to sell sells best. Use Ebay to help you make money on Ebay.
Watch Ebay auctions for large lots. You can buy the whole lot and then break the lot down into smaller lots and sell them to people wanting the item but don't want that many. Also look for misspelled description words. I'll write another article on that subject later.
You simply need some market and product knowledge. Know your product and do your homework. You will be competing with many sellers just like yourself. Make sure you know exactly what you're buying for resale so you can write a smart description and have the information. More info later on writing a good description.
There are some areas that take a lot of money to get into; electronics being one of them. There are also many many sellers in this catagory. Let's not forget the vintage catagory. That's one of my favorites. There's vintage everything. And vintage everything can be found everwhere.....garage sales, second hand stores, thrift stores and flea markets. Don't overlook this catagory.
I have not gotten into drop shipping myself but it is another strategy used by many new sellers. I cannot recommend working with drop shippers because I don't have the experience with them but I have heard many can be unreliable. And don't forget, it's your feedback and reputation on the line. Same with selling for your friends. If you do so, make sure you do the shipping. The faster you get the item in the mail the better. I very very often ship the same day or next day the item is fully paid for. I have impeccable feedback because of this. I would not and cannot recommend this way of finding product.
Ebay has a list of hot selling items. Look for it in their site map. Here's their link. http://pages.ebay.com/sellercentral/whatshot.html. Do make use of it. Maybe you'll find that one something you want to try selling and may already have. I do know that it is an Ebay requirement that if you sell clothing, it needs to be cleaned and in good repair. You need to state in the description if there's any defects. That's ok, BUT the items needs to be clean.
Here's a few ideas for you:
New and used clothing, Military and history items,auto parts, maps, art prints, calendars, pictures, fabric, old greeting cards, dishes. Just to name a very few. There's too many to mention. It's a good idea to specialize or find a niche market and learn everything about it and work it till it runs dry for you.
Now, if you've opened your Ebay account, don't forget to open your PayPal account.
More later on this topic
Copyright © 2007 Artsandcraftsdotcom.blogspot.com - an online arts, crafts, knitting and marketing Ebay business source. All rights reserved.
Kathy AndersonJuly 8, 2007
It's a good idea to gain experience by being an Ebay customer first. That way you can learn what your customers will do and what they go through to purchase from you when they win your auctions.
Check to see what others do about shipping and handling and their other purchasing requirements. Get very familiar with how Ebay operates; their dos and don'ts. DON'T begin by going out and buying a bunch of wholesale products until you know your niche and/or know what you want to sell and how WHAT you have chosen does sell.......good or bad.
The best thing to start with is your own used goods; as I've mentioned before. Take shipping into consideration. The buyer will pay for shipping if you set it up that way. But remember they don't like papying those high shipping fees either. Keep things small and light weight. They really are the best and the easiest, for beginners at least. Paper products, craft supplies, etc.; things one pound and under makes life easier for you and the experience is invaluable. Selling small items, used and small gifts you have no use for any longer, etc. makes for low risk of any capital and all you'll risk is some small ebay fees.
Everything is for sale. Anything sells on Ebay. You might be surprised so spend some time searching and shopping on Ebay. Don't forget to check the "completed listings" box in the left hand column to see what things actually sold for.
Maybe you have a hobby or some interest that could bring in a few dollars for you. Hobby supplies or craft supplies can be just right if it's your interest. You don't need to sell high priced items to make some money. It doesn't need to be large pieces of painted furniture, outdoor patio furniture or heavy kitchen faucets!
Don't go out and buy hundreds of the latest hot item selling on Ebay. There's already too many people doing just that. You can sell these items and this type of thing later after you've gained some experience. There's plenty of import companies to buy directly. Wait and do that after you've got some experience under you belt.
It's always good to know something about what you sell. There's lots of collectors buying on Ebay. People collect just about everything. Become knowledgeable about a few collectibles. The Internet is an endless source of information.You can then, after some experience, try a larger dollar item. Remember you have to sell a lot of small priced items to make enough money to call it a real income. You'd need to sell 100 of a $2.00 item to make $200 or five $40 items to make $200. Less work for the same dollar amount.
Sometimes selling sets can bring you more money than parting out and sometimes visa versa. For instance, a set of dinnerware sold by piece may bring in more money that selling the set. Sometimes the whole set will sell better. Sometimes lots sell better when it's sold in categories. Keep same kind together. Do your homework and see how what you want to sell sells best. Use Ebay to help you make money on Ebay.
Watch Ebay auctions for large lots. You can buy the whole lot and then break the lot down into smaller lots and sell them to people wanting the item but don't want that many. Also look for misspelled description words. I'll write another article on that subject later.
You simply need some market and product knowledge. Know your product and do your homework. You will be competing with many sellers just like yourself. Make sure you know exactly what you're buying for resale so you can write a smart description and have the information. More info later on writing a good description.
There are some areas that take a lot of money to get into; electronics being one of them. There are also many many sellers in this catagory. Let's not forget the vintage catagory. That's one of my favorites. There's vintage everything. And vintage everything can be found everwhere.....garage sales, second hand stores, thrift stores and flea markets. Don't overlook this catagory.
I have not gotten into drop shipping myself but it is another strategy used by many new sellers. I cannot recommend working with drop shippers because I don't have the experience with them but I have heard many can be unreliable. And don't forget, it's your feedback and reputation on the line. Same with selling for your friends. If you do so, make sure you do the shipping. The faster you get the item in the mail the better. I very very often ship the same day or next day the item is fully paid for. I have impeccable feedback because of this. I would not and cannot recommend this way of finding product.
Ebay has a list of hot selling items. Look for it in their site map. Here's their link. http://pages.ebay.com/sellercentral/whatshot.html. Do make use of it. Maybe you'll find that one something you want to try selling and may already have. I do know that it is an Ebay requirement that if you sell clothing, it needs to be cleaned and in good repair. You need to state in the description if there's any defects. That's ok, BUT the items needs to be clean.
Here's a few ideas for you:
New and used clothing, Military and history items,auto parts, maps, art prints, calendars, pictures, fabric, old greeting cards, dishes. Just to name a very few. There's too many to mention. It's a good idea to specialize or find a niche market and learn everything about it and work it till it runs dry for you.
Now, if you've opened your Ebay account, don't forget to open your PayPal account.
More later on this topic
Copyright © 2007 Artsandcraftsdotcom.blogspot.com - an online arts, crafts, knitting and marketing Ebay business source. All rights reserved.
Saturday, September 8, 2007
New Circle Square Illusion Shadow Knit Pattern Sample
Ok, I finally got the new pattern finished and decided to post it before I actually made it into something. It's better but I think it's still too elongated and I think if I was to make it big enough to include 4 squares, it would be nicer and maybe make more sense. There's the square and then the circle inside the square and then a square inside the circle. I'll use this pattern on something.......not sure what and then will post it so you'll see the full pattern.
Another beautiful day here in Seattle. Just beautiful. Don't even know if it got to 70 but it came close and nice and sunny, too.
We went to the state fair all day yesterday, the weather was perfect, and we found this wonderful embroidery technique done by a Chinese family. Their web site is www.silkart.ca. Make sure you read about how the embroidery is done. The thread they use is so so thin you can hardly see it and it makes for exqusitely detailed work and vibrant colors.
Here's the new pattern. And another view.
I'm working on the same pattern but still trying to make it less elongated and more of a circle. There's more ideas floating around in my head that I want to try, too. So stay tuned.....
Just thought I'd show off my little grandsons. Here's one. One at a time.
This is little Ethan something just under 1 year old.
I better get back to work knitting and designing. I need to list a few more things in my Ebay store, too. I have a few more purses/totes I can show you, too.
Till next time................BYEEEEEEE
Another beautiful day here in Seattle. Just beautiful. Don't even know if it got to 70 but it came close and nice and sunny, too.
We went to the state fair all day yesterday, the weather was perfect, and we found this wonderful embroidery technique done by a Chinese family. Their web site is www.silkart.ca. Make sure you read about how the embroidery is done. The thread they use is so so thin you can hardly see it and it makes for exqusitely detailed work and vibrant colors.
Here's the new pattern. And another view.
I'm working on the same pattern but still trying to make it less elongated and more of a circle. There's more ideas floating around in my head that I want to try, too. So stay tuned.....
Just thought I'd show off my little grandsons. Here's one. One at a time.
This is little Ethan something just under 1 year old.
I better get back to work knitting and designing. I need to list a few more things in my Ebay store, too. I have a few more purses/totes I can show you, too.
Till next time................BYEEEEEEE
Thursday, September 6, 2007
A New Day and a New Pattern
I haven't posted for a few days.....what's wrong with me!? LOL I have been busy working up a new illusion shadow knitting pattern. I will take a picture and post it before I make it into a purse or tote then maybe you can see the patter much better. Maybe maybe not. To be honest with you, I can't wait to show it off. It's suposed to be a circle within a square but with illusion knitting things get a little elongated. I'm working to fix that with the same pattern but done differently. I'm hoping to figure out how to create a real circle! Stay tuned......
Everyone likes to talk about the weather and it is really truly gorgeous here in the Northwest. Not hot but about 70 degrees and beautiful blue skies!
I am so close to finishing my lates illusion shadow knit design I should close and get to work. Stay tuned for the latest...........
Don't forget to check out my other posts. I will be showing you my portrait paintings and my primitive home decor that I've painted. AGAIN........stay tuned.
Tomorrow is the first day of our state fair so you know where I'll be all day.
B Y E E E E
Everyone likes to talk about the weather and it is really truly gorgeous here in the Northwest. Not hot but about 70 degrees and beautiful blue skies!
I am so close to finishing my lates illusion shadow knit design I should close and get to work. Stay tuned for the latest...........
Don't forget to check out my other posts. I will be showing you my portrait paintings and my primitive home decor that I've painted. AGAIN........stay tuned.
Tomorrow is the first day of our state fair so you know where I'll be all day.
B Y E E E E
Tuesday, August 28, 2007
FREE Double Diamond Illusion Shadow Knit Tote
Well, let's see if this works. I have been playing around trying to get photos on my blog and think I'm doing ok. Let's see if this Free pattern will download and you can use it! I know it's small but you could probably print it out and enlarge it for yourselves. If anyone wants the written instructions, let me know and I can email them to you. Happy knitting and let me know and see what you're making!
Wednesday, August 22, 2007
Beautiful Day in Seattle!
Even though it's cloudy and gloomy, it's a beautiful day in Seattle! It's nice to have a cooler day once in awhile in August! You can open windows and and not have to turn on the AC. By the end of the week summer is supposed to return.
I just came home from a 17 day vacation. Well, came home about 5 days ago, and still cannot get back into my old routine. I actually took time to go through my two knitting boxes in the livingroom to see where I was at when I left but I can't figure it out. I can't find my patterns and not sure where I was so guess I'll just start over. I am going to post some pictures of my latest purse designs. What am I going to do with all these purses!? LOL
Everyone have a nice day and I'll be back later to post some photos..........
I"m back. This is my first attempt at designing my own illusion or shadow knit pattern. I love the color combination and I think the tote/purse turned out super! I have the pattern all written out if anyone is interested in tryng it themselves. I have the illusion pattern........the tote pattern is pretty much up to you........LOL
Good Day!
I just came home from a 17 day vacation. Well, came home about 5 days ago, and still cannot get back into my old routine. I actually took time to go through my two knitting boxes in the livingroom to see where I was at when I left but I can't figure it out. I can't find my patterns and not sure where I was so guess I'll just start over. I am going to post some pictures of my latest purse designs. What am I going to do with all these purses!? LOL
Everyone have a nice day and I'll be back later to post some photos..........
I"m back. This is my first attempt at designing my own illusion or shadow knit pattern. I love the color combination and I think the tote/purse turned out super! I have the pattern all written out if anyone is interested in tryng it themselves. I have the illusion pattern........the tote pattern is pretty much up to you........LOL
Good Day!
Sunday, August 19, 2007
Secrets of Knitting and Crocheting
Secrets of Knitting and Crocheting
*~*~*~*~*~*~*~*~*~
Discover the Secret That Will Have You Knitting Brilliant, Timeless Designs in No Time At All – Even If You Have Absolutely No Knitting Experience Whatsoever Knitting Essentials
Learn How to Crochet Beautiful Afghans, Baby Hats, Doilies, Head Warmers, Jackets, Jewellery, Mittens, Sweaters and Much, Much More … in Absolutely No Time At All! Crochet Secrets Revealed
*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
What you'll find in my blog:
Patterns
Free Patterns
Needlework Supplies
Selling my OOAK needlework
And much more..............
*~*~*~*~*~*~*~*~*~
Discover the Secret That Will Have You Knitting Brilliant, Timeless Designs in No Time At All – Even If You Have Absolutely No Knitting Experience Whatsoever Knitting Essentials
Learn How to Crochet Beautiful Afghans, Baby Hats, Doilies, Head Warmers, Jackets, Jewellery, Mittens, Sweaters and Much, Much More … in Absolutely No Time At All! Crochet Secrets Revealed
*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
What you'll find in my blog:
Patterns
Free Patterns
Needlework Supplies
Selling my OOAK needlework
And much more..............
Purses Totes and More Purses
Home Arts and Crafts
These purses and totes are my personal custom designs and knitted with basic easy care yarns. They are fully lined and completely washable.
Fun and funky baby blue tote made with the baby blue and white yarn together double stranded of Red Heart Coats and Clark 100% acrylic yarn. Unusual bulky knit pattern and trimmed with multi colored cotton candy colored fun fur yarn. Measurements are:10" X 10 1/5" Completely lined with prewashed 100% cotton in a complimentary dark blue floral print. Very affordable! The handle is 22" long and attached on one side with a matching fun fur button. Price: $14.99 + shipping
Purse only
no pattern available as I design as I knit or crochet
This is a OOAK (one of a kind)
Wonderful! yellow and white Illusion or shadow knit tote. Smartly lined with a complimentary yellow and soft green plaid 100% cotton which compliments the tote perfectly. The whole tote is completely washable. Red Heart Coats and Clark 100% acrylic ya
rn was used. Lovely fleur de lis illusion pattern. Surprise your friends. Handle attached with large brightly fun plastic buttons. Measurements are: 11 1/5" X 12 1/2" and the handle measures 22"
Price: $14.99 + shipping
Purse only
no pattern is available as I design as I go
This is a OOAK purse
Gorgeous very fun and funky drawstring bag in brown wool,
Lion Band Wool-Ease, and multi colored acrylic green homespun yarn. Unusual trim around top is spiral dreg-like fringe. Drawstring rope is I-cord out of the green, Lion Brand Homespun Acrylic/poly yarn. The lining is a home dec prewashed fabric. The whole bag is completely washable. Measurements are approximately 13" wide X 11" long. Drawstring is about 36" pulled and can be adjusted by moving the knot. The pattern is an illusion or shadow knit pattern I designed myself. Price: $17.99 + shipping
Purse only
No pattern is available as I design as I go
This is an OOAK purse
*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
Shipping is priority. I can accept credit card payments through PayPal. Please email me with your method of payment and any questions before making your purchase. I will quote you the shipping price and give you my PayPal account address.
Copyright © 2007 ArtsAndCraftsdotCOM - an online marketing ART BLOG
These purses and totes are my personal custom designs and knitted with basic easy care yarns. They are fully lined and completely washable.
Fun and funky baby blue tote made with the baby blue and white yarn together double stranded of Red Heart Coats and Clark 100% acrylic yarn. Unusual bulky knit pattern and trimmed with multi colored cotton candy colored fun fur yarn. Measurements are:10" X 10 1/5" Completely lined with prewashed 100% cotton in a complimentary dark blue floral print. Very affordable! The handle is 22" long and attached on one side with a matching fun fur button. Price: $14.99 + shipping
Purse only
no pattern available as I design as I knit or crochet
This is a OOAK (one of a kind)
Wonderful! yellow and white Illusion or shadow knit tote. Smartly lined with a complimentary yellow and soft green plaid 100% cotton which compliments the tote perfectly. The whole tote is completely washable. Red Heart Coats and Clark 100% acrylic ya
rn was used. Lovely fleur de lis illusion pattern. Surprise your friends. Handle attached with large brightly fun plastic buttons. Measurements are: 11 1/5" X 12 1/2" and the handle measures 22"Price: $14.99 + shipping
Purse only
no pattern is available as I design as I go
This is a OOAK purse
Gorgeous very fun and funky drawstring bag in brown wool,
Lion Band Wool-Ease, and multi colored acrylic green homespun yarn. Unusual trim around top is spiral dreg-like fringe. Drawstring rope is I-cord out of the green, Lion Brand Homespun Acrylic/poly yarn. The lining is a home dec prewashed fabric. The whole bag is completely washable. Measurements are approximately 13" wide X 11" long. Drawstring is about 36" pulled and can be adjusted by moving the knot. The pattern is an illusion or shadow knit pattern I designed myself. Price: $17.99 + shipping Purse only
No pattern is available as I design as I go
This is an OOAK purse
*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
Shipping is priority. I can accept credit card payments through PayPal. Please email me with your method of payment and any questions before making your purchase. I will quote you the shipping price and give you my PayPal account address.
Copyright © 2007 ArtsAndCraftsdotCOM - an online marketing ART BLOG
All rights reserved.
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