Auction Selling Revealed Blog

I came across this story this morning and it seems like the IRS wants your eBay profits. One exciting thing about the article was that it said that in difficult economic times people try to sell the things in their closets and attics. The gist of the story is that you are supposed to report any profits to the IRS and it’s a voluntary process.
As the saying goes:

One man’s junk is another man’s treasure!

This might not sound like good news to you, but you are already one step ahead of the crowd or herd. eBay is such a great platform because as

“We’re uniquely positioned as a great resource in strong times to find good items, and in counter-cyclical times we can be used as a way to sell goods people no longer need to make a few extra dollars,” said eBay spokeswoman Kimberly Rubey

You are interested in learning how to sell on eBay and probably making some decent money on the side already and if not that’s why you’re reading this blog.

I know some of you are doing better, and are making a part-time or even full time income from your sales on eBay. If you’d like to find out more about how to sell on eBay take a look at Auction Selling Revealed.

We’ve been hearing that we’re in a recession, no we’re not, yes we are. It doesn’t matter that much to me what the “offical word” is if we are in a recession or not. I can see the price of gasoline at the pump is running full speed ahead towards $5.00 a gallon, and the costs for everyday goods are continuing to go up. To me, the times they are a changing.

It applies even more now that we have rising costs for gas …

Oil jumps $5 on shrinking stockpiles

Price of food and other household needs are rising

Fed: High energy, food prices keep economy weak

I’m sure one of the reasons that the IRS is more interested in your eBay profits is because if the economy is slowing down they are looking for other places to get increase their revenues.

The story goes through the 3 types of sellers:

The casual seller - sells once in a while, usually at a loss; only report any profit they make but cannot deduct expenses. Use Schedule C

The Hobbyist - seller whose income can be offset by losses; those who do more than a few sales but whose motive is not solely for profit. Use Schedule D

The business - can write off losses, for profit intent, check with your accountant for proper filing process

Please check with an accountant for your individual needs. This is not intended as advise or legal consel but for informational purposes only.