Wednesday, August 11, 2010

How do i deal with taxes on ebay?


Here is the deal guys.

So im trying to get into the ebay scheme.

Im currently reading books on it, and trying to educate myself on taxes.

My intentions(remember im just starting) is to buy wholesale products and sell them for profit.

I read somewere that i need to file taxes.

When? and where?

im really confused.

How do i pay taxes, and how often do i need to pay the IRS.

thanks. really appreciate the helpHow do i deal with taxes on ebay?
When you do your tax return, you fill out a schedule C showing all your income and expenses. Income is any money you received. Expenses would be cost of items sold, ebay fees, paypal fees, packing and shipping materials, postage, etc.

The profit - income less expenses, is taxable income.

If you only earn a little, just include the income on your tax return at tax time. If you're making a bundle, use form 1040-ES to approximate your estimated taxes, and send them in periodically, as you earn the money.

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