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<p>[QUOTE=&quot;Stork, post: 3030231, member: 71642&quot;]You are mixing up your PROFIT (which is taxed) vs. your SALES (which is what is getting reported).</p><p><br /></p><p>Just to use random-ish numbers on a theoretical $150 sale:</p><p><br /></p><p>$100 is the price you paid for the item with money you have been taxed on</p><p>$ 30&nbsp; are things you paid in fees (ebay, paypal), shipping costs (material, fees)</p><p><br /></p><p>PayPal reports your gross money collected of $150.&nbsp; However, your cost basis is $130.&nbsp; So your NET PROFIT is $20, and that $20 is what you/your business is to be taxed on.</p><p><br /></p><p>This requires record keeping to support.&nbsp; Whether you have set up an LLC, and have an S corp etc.&nbsp; Tax treatment/pass through taxes etc is very important to understand if you are doing this as a business.[/QUOTE]</p><p><br /></p>

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