E Bay sellers beware

You filled out the paperwork for if it would have reached the reportable amount and issued a card so if you hit on a machine especially certain amount for reporting, they know. I’m not sure if they withhold it then or the paperwork is just sent in.

 

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seriously - you don’t think coin & currency sales non taxable do u?

If your going to sell on eBay you should plan on filing sch c. You will need keep acctg records - Sales, Cost of Sales, Inventory, Operating Expenses.

suggest get sch c instructions print out

you might also want to consult a tax acct.

 

I have a friend that won a new truck. (This happened over 20 years ago.) Anyway, they got a statement from the dealership that they would have to pay the taxes for the "fair market value of the truck.) They sold the new truck and paid the taxes on the truck they won. With their winnings, they paid off their older truck and did some work on their home. She came to me to find out what to do because I was the Internal Auditor for the University we both worked for.
Later, my wife was talking to the custodian of the building she worked in. It seems that the custodian got a letter from the IRS telling the custodian that after they reviewed his tax report and found some discrepancy in his return. I told my wife that I would look at it. I found that his tax returns were not correct and they disallowed several items amounting taxes due for several years and he owed over $10,000. When I asked who prepared his taxes he told me. He said he couldn't understand why he had to pay the taxes. He told me who filled out the tax reports and he told me. He said he couldn't understand why there was a problem, that the tax preparer was a "Notary Public". I had to hold my breath not to laugh until I got into my car. I finally told him I would speak to the agent whose case it was. When I called the agent, I told her what had happened. The custodian only had a GED and really didn't know what to do. I asked the agent if she would see what she could do. A couple a days later. She said that she took off all of the penalties and interest and if he would file an amended return, he would only have to pay about $5,000. He asked me how much he owed me, I told him I was not a tax accountant (thank God!!) Luckily, he did everything I told him to do. I never saw him again. (Anotehr thank God!)