It’s that time of year - April 15 is looming. As if I wasn’t already thinking about it, the Associated Press ran an article about eBay sellers and whether they were required to report eBay income on their taxes.
How do you know if you are required to report eBay income in your taxes? Barbara Weltman, publisher of the “Big Ideas for Small Business” newsletter and author of several books, including, “J.K. Lasser’s Small Business Taxes 2005,” said the rule as the tax law states it is that you have to report all income from whatever source derived. However, an eBay sale may not be income. She explained that if you purchased a designer dress for $1,000 and sold it on eBay for $200, that is a loss.
Where do you learn how to report eBay income on your taxes? Weltman suggested IRS Publication 334, Tax Guide for Small Business. She said her newsletter and book, JK Lasser’s Small Business Taxes 2005 can also help.
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