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Ebay buying & selling?

I am going to start buying wholesale products & reselling them on Ebay. I was told I will need a tax id number. It won't be an actual business I will be the only person so I'm sure I won't be selling a TON I really don't know but does anybody know if I will need a tax ID & also will this affect me when file my taxes? Will this mean I may have to pay when I file taxes? I don't know a whole lot about it yet but I haven't noticed many people charging tax for items on Ebay so I didn't plan on it. Just the amount the item is purchased for plus shipping....?? Any info is much appreciated thanks!

Public Comments

  1. My understanding is that if you are a business then you have to charge tax on anything sold within your state boundaries but are exempt on out of state sales.
  2. Usually you only charge tax if the person buying your item is from your state. I doubt you will have to file income tzx though.
  3. Here's the officialy IRS writeup http://www.irs.gov/businesses/small/industries/article/0,,id=163622,00.html You are missing a lot of points. 1. If you buy items for resale, you *ARE* either a business or a hobby and automatically subject to the sales tax rules of your state. When you charge sales tax, it almost always includes shipping--the exception is if you charge EXACT postage and bill the postage separately. Most eBay sellers including handling and when bundled, "shipping and handling" is fully taxed. 2. If you are a business and have $400 or more of net earnings, you MUST file a tax return. 3. KEEP RECORDS of everything. The IRS will disallow expenses that you can't document.
  4. Hi there, I noticed you wanted some info of sellin on ebay. Ok, listen. If you want to sell succesfully it all depends on the products you sell and your stats (sellin points ). Dont sell products that people arent interested in. And dont put your price too high. One thing I struggled with in starting selling on ebay was that i didnt know what product to sell. I came across this website that you may want to checkout. http://www.worldwidebrands.tk Any questions? email me. greetz,
  5. You are already required to pay income tax on your ebay sales, even without a tax number. But you are required to charge sales tax to buyers in your state and to remit those taxes to the state on a schedule they'll give you. In most places, shipping is taxable but find out for sure for your state. The state will give you the rules on what is taxable and what isn't. When you sell to people out of your state, you won't charge sales tax on those sales.
  6. Come join my forum - it is free. We have 600 sellers all helping each other. You can ask other REAL sellers how they handle these issues. http://ebaycoach.freeforums.org/ Regards- Suzanne Wells The eBay Coach http://ebaysellingcoach.blogspot.com/
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