View Full Version : Ebay and the IRS?

12-20-2007, 12:19 AM
Right now I'm unemployed living on MI unemployment benefit and there doesn't seem to be many good jobs where I live. I was thinking about selling stuff on Ebay for extra money but while reading up on it it seems that the IRS has become more interested in tracking down Ebay sellers saying that all auction profits are considered taxable income.

I find this discouraging because I don't really want to put together a file system just to keep track of all my online selling activities just in case of an audit. Or I could get "flagged" because I'm collecting unemployment checks. If I started getting other checks it might look like I have another income. Maybe the IRS would want their cut or maybe Michigan unemployment would complain saying I'm fraudulently saying I'm unemployed.

I guess I'm just wondering what any Ebayers might think and also posting this because it illustrates why Ron Paul's goal of economic freedom is important. I'm sorry some people might be good at business and accounting and maybe don't think using up their personal or business time recording tax forms is a big deal but I'm not one of those people.

Fox McCloud
12-20-2007, 12:28 AM
if you make above a certain amount in a year (no matter the source), it's generally considered that you have a job, and thus, taxable income. It is true that the IRS is really cracking down on E-bayers...there's been a couple of people (so I heard) that have been bashed for making simple penny/dime mistakes. Fascistic, no?

If you get into e-bay, and intend to make a business out of it...or make extra money (on top of your unemployment check) be prepared to suffer the wrath of the IRS if they ever find you out....not trying to be mean here, I'm just letting you know how their dirty little system works.

12-20-2007, 12:32 AM
What if I just cashed the checks at a store without going to a bank? Also I would use an Ebay seller instead of doing the auctions myself.

Would that be enough of a buffer between myself and the auction by having someone else sell it and then just cashing the check without using a bank? I don't know. Maybe it's not worth it.

12-20-2007, 12:48 AM
Pay your taxes.

This is the creed for poker players, and it's the creed for e-bay sellers too.

If you're selling your items through a 3rd party, that's different. No different than a pawn shop or consignment deal.

If you're going to make a buisness of it, pay the taxes.