[Spool]

Does anyone know? I get some side money, actually a good chunk of side money selling shoes on Ebay...i'm talking like 10K in a year...do i have to report this to the IRS or no? Anyone else sell stuff on ebay to get extra money for mods?

[Feyd]

If its income, then you absolutely need to.

you can write off some of your losses and keep some of it maybe, but the IRS knows you made the money and if you don't report it you're running the risk of some trouble in the future.

If it was a menial amount then I'd say don't worry about it, but at the level you are talking about I'd say you are at least somewhat visible.

[Maestro]

If it is a business or even a hobby business that make money the government wants their piece of it. Depending on the state you live in they may want their sales tax piece as well if you sold to people who live in your state.

That is the Law from the governments view point.

The reality of it all, is will the government find out, I always wonder if ebay reported user who had over a certain level of income to the IRS. If you have one of those store fronts on Ebay that probably attracts the IRS's attention that is for sure, kind of hard to hide the fact you are operating a business when you have electronic store front.

I use to run a lawn cutting and firewood business in high school and made loads of money special for a kid, never reported a dime since it was all cash and not a single record. But internet businesses generates lots of records.

[kyleb350]

^^^Good point. All your sales are kept in eBay's records and can be added up in one simple query.

[silvergray545]

Don't ask, don't tell.

[Spool]

good stuff guys, keep it coming....im about to file taxes soon, and i don't want to be in trouble...paypal already suspended my account once because i was getting too much money in....but i got it uplifted saying im just selling junk around the house.

[Zephyr15]

You're legally obligated to report it. Whether you choose to report it or roll the dice is up to you.

[Maestro]

There are certain things that trigger an audit with the IRS. Most time you can do what you want and as long as the IRS feels they are getting their share and nothing significantly changes with your returns they leave you alone. I do know that any time you get tax paperwork in the mail, the IRS gets copy and they do match what you file to what they get and if it does not match up then it triggers an investigation. It could be simply as a letter in the mail say they believe you forgot something or it could be a knock on the door depending on the $ they feel that is owed to them.

My wife ran a home business for years and she made some good money and we hardly paid any taxes on it, since we were able to write off things against it. It gave us extra cash and was able to buy some thing we might not have bought like new cars or upgraded computers.

[MJC///M3]

Originally Posted by Spool

good stuff guys, keep it coming....im about to file taxes soon, and i don't want to be in trouble...paypal already suspended my account once because i was getting too much money in....but i got it uplifted saying im just selling junk around the house.

paypal is a pain in the ass....especially if your account is inactive for a bit, and than you start ramping up selling/buying....they'll freeze your account and do their "investigation." It really is a pain.


10K is pushing it....i'd report some of it at least....if it was 2-3K i'd say screw it....but 10K would def come onto their radar.

[E90SLAM]

Spool is working for the IRS and will check everyone posted here for their ebay and paypal account...

j/k...

[3002 tii]

put it this way, even drug dealers are obligated to report their income

[Feyd]

Originally Posted by dark335i

I was at $10k+ a year and i never reported it (that was 3 years or so of not reporting anything from eBay). If for some reason the IRS asks you, you can just say they were all deadbeat bidders...that should work.

I believe the statute for auditing is 7 years... so you might not quite be out of the woods yet.

Also, if there is any kind of a trail that shows money exchanging hands that is anything but cash. That includes paypal transactions all the way down to you depositing a paper check or MO into your bank account it is all admissable in their investigation. All the IRS would need to do is supoena your bank statements/records. If you don't have a good excuse where the money came from, you are in a jam. With tax evasion, you are most likly going to be guilty until proven innocent.

So in summary, unless you took cash payments and then promptly stuffed them it in your mattress and/or purchased perishable items with it (like food for instance) there is always potential for an audit.

I think people loose sight of the fact that just because there isn't much of a physical paper trail these days they can get by with a lot of this stuff and that simply isn't the case. If anything computers have made record keeping more accurate and will show potential labilities (tax and otherwise) with exacting precision.

If you ever want some scary examples of this kind of tracking, sign up for a credit report on the goverments free credit report site. The questions they ask you to verify your identity are crazy in their detail....

[ktdw]

I'm not going to say that you shouldn't report it, but the red flag will only appear when you start to report it. IMO, it's better for the IRS not to know anything, rather than see $1K or so, and suspect there may be more. The IRS has no idea about your ebay activity, so why tell them?

But, yes, the law requires you to report all income...even money you found on the street.

[Tondtar]

I don't think ebay reports anything to IRS because they do not have your SSN. So I think like Skittles said, it's a "Don't ask. Don't tell" .....






...But you did NOT hear that from me

[Spool]

but i get paid through paypal, and then paypal direct deposit into my bank...


also i gamble a lot....sometimes i'd win like 5 grand and i bring that home and deposit that into my bank....will the IRS give me trouble for that? thikning im selling drugs or some shit...my bank account fluctuates anywhere from 5-10K a month based on my hobbies, what i do for a living, my spending...etc...i should talk to an accountant huh

[Blake]

i wouldn't report it, but that's just me

[silvergray545]

With the money you won gambling, you should show it but you can keep it hush as long as you don't get in trouble. I remember when my dad hit big a couple years ago, the casino made him sign a paper saying that he has to claim the money he won and they sent his info to the IRS. I believe they only do that if you win over a certain amount. I'm not sure what that number is though.

It's a chance. U probably wont be audited but if you don't report it and u do get audited, you're looking at a lot of penalty fees because they will dig and find all the years you weren't paying tax. I think any income above....1800$ or something you have to file a tax return...someone might be able to clarify the minimum amount but 10k a year of INCOME u would have to report it. Choosing to, however, is your own decision.

[Spool]

Originally Posted by silvergray545

With the money you won gambling, you should show it but you can keep it hush as long as you don't get in trouble. I remember when my dad hit big a couple years ago, the casino made him sign a paper saying that he has to claim the money he won and they sent his info to the IRS. I believe they only do that if you win over a certain amount. I'm not sure what that number is though.

That only happen with slots right? if you win table games, how would they keep track of it....i usually buy in 3-4 grand when i go...and once i left with 10K they didn't stop me or anything...so im not sure how the casino thing works..


notice how i said "once" i left with 10K


most of the time i just leave...haha

Originally Posted by Spool

That only happen with slots right? if you win table games, how would they keep track of it....i usually buy in 3-4 grand when i go...and once i left with 10K they didn't stop me or anything...so im not sure how the casino thing works..


notice how i said "once" i left with 10K


most of the time i just leave...haha

10k is pretty small in terms of the bigger jackpots and they usually only monitor like big slot jackpots because my uncle won once but he had to sign papers and they took a big chunk of it for taxes and stuff. Never seen anyone having to do anything for tables...maybe if u win a lot?

[stooken]

legally, yes. do most? probably not.

[silvergray545]

Originally Posted by Spool

That only happen with slots right? if you win table games, how would they keep track of it....i usually buy in 3-4 grand when i go...and once i left with 10K they didn't stop me or anything...so im not sure how the casino thing works..


notice how i said "once" i left with 10K


most of the time i just leave...haha

Yeah, that's only for slots. When my dad wins on the tables and he never shows anything. My dad was surprised that he had to show what he won on the slots. He normally doesn't play slots but he had a few minutes to kill one time and he actually hit big on a slot machine. What are the chances...lol.

Instead of having the money you made from selling shoes on ebay deposited into your bank account, why don't you just leave it in the paypal account? That way you don't have 10k randomly show up in your bank account.