2005 has not been kind to eBay sellers. First, eBay upped its fees for those operating stores. Next, Ohio wanted to require Buckeye eBay sellers to pass an auction test and buy a license. Now the IRS is entering the picture.
eBayers are now trying to decide whether they should pay tax on the profits made from their online sales. For high-volume eBay stores it’s an easy decision, but for the clean-out-the-closet crowd who make a modest profit, it’s not that simple.
According to the AP: “In tax law, there is no clear, bright line that separates fun from profit, or a hobby from a business. But IRS instructions make it clear that all income – a category that includes bribes, gambling winnings, kickbacks and money made in illegal activities – can be taxed.”
If you were of the character to engage in the latter, it’s cute that the IRS would actually expect you to claim such ill-gotten booty on your taxes.
Via My Way News
