If you are like millions of other Americans, you made money peddling products on eBay (Nasdaq: EBAY) Latest News about eBay last year. Many earned enough to enjoy a night on the town. Others collected enough to go on their dream vacation. Still others made a living selling widgets at the online auction site.
Regardless of whether you made a few bucks or several thousand dollars, there are tax implications to generating revenue. Do you report it? Do you need a tax ID number? Can you write off your home office? What on earth is a Schedule C, and do you have to file one?
A quick scan of eBay’s user forums reveals that taxes are consistently a top issue. These questions, and others like them, abound. Indeed, with millions of Americans selling items through the various auction services online, sellers are struggling to understand what’s deductible, what isn’t, and how to ensure they report it the right way.
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