Auction Information

Taxing eBay Part Deux


When my column on paying income tax on eBay profits ran it brought a wave of emails on whether you were required to report income earned from eBay sales to the IRS sparked a number of additional questions and comments from eBay sellers who were hoping that I could somehow validate that their eBay activities were mere hobbies instead of actual businesses and therefore not susceptible to IRS taxation.

Several folks argued that just because their little eBay hobby generated a little cash, that didn't make it a full blown business. It seems they consider the income from their little hobby to be financial manna from Heaven and thereby not taxable by earthly tax collectors. I've always been amused by folks who try to impress me with talk about their "little side business" but when the subject turns to taxes they suddenly refer to it as "my little hobby."

All arguments aside, the conclusion that I came to after reading each of the emails was always the same: while you may think selling on eBay is just a fun pastime and the money you're making is not reportable as income, depending on the circumstances, the IRS would probably disagree with you.

It seems that everyone likes making money, but hates carving off a piece for good old Uncle Sam. Welcome to free enterprise, folks. If you're going to come to the dance you have to pay the fiddler.

The IRS rules are clear: you must pay taxes on all personal and business income and that includes money you make selling on Ebay.

In its most basic sense, the IRS rules can be interpreted to mean that if you buy an old vase at a garage sale for $10 and sell it on eBay (or elsewhere) for $20 you made a $10 profit and therefore must report it as income and pay Uncle Sam his fair share.

In reality, if you are a casual seller who only sells a few items on eBay every now and then it's doubtful the IRS is going to let loose an army of agents to collect taxes on the few bucks you make. However, if you consistently sell on eBay the IRS may deem your activities to be business oriented and you will be required to file a Schedule C and claim the income.

As mentioned last week, the IRS uses a number of factors to determine if an eBay hobby that generates sales revenue is actually a business. These factors include:

Do you carry on the hobby in a business-like manner?

Do you spend considerable time working on the hobby?

Do you depend on income from your hobby for your livelihood?

If the answer to any or all of these question is yes, you're running a business, not carrying on a hobby, and you are responsible for paying taxes on your income.

What's eBay's take on all this? Naturally eBay is vehemently opposed to anything that might rock the eBay boat. eBay does not issue 1099 tax forms to sellers, nor does it report seller's sales figures to the IRS.

Ebay considers itself merely to be a facilitator, meaning that they provide a marketplace in which buyers and sellers come together to do business.

Furthermore, under its current system it would be impossible for eBay to issue accurate 1099s to sellers. eBay does not track if a seller actually gets paid by the buyer, so eBay has no idea how much money - if any - actually changes hands at the end of each transaction.

On the bright side, if you do sell on eBay as a business you can deduct a number of business expenses, including the cost of inventory, listing fees, shipping, envelopes, packing materials, etc.

You might also be able to deduct things like the purchase of a computer for business use, office space (even if it's a home office), office supplies, and more.

Talk to your accountant if there's any doubt as to whether you should or should not be paying taxes on your eBay earnings.

Small Business Q&A is written by veteran entrepreneurand syndicated columnist, Tim Knox.Tim's latest books include "Small Business Success Secrets"and "The 30 Day Blueprint For Success!"Related Links:http://www.smallbusinessqa.comhttp://www.dropshipwholesale.net


MORE RESOURCES:
From the sublime to the ridiculous: 13 unusual objects to be sold at auction in 2018  CNN

Whether you're buying, selling or merely watching the drama unfold, a blockbuster auction is a thrilling thing. Here are some of the most unusual items to cross ...


Price guarantees are common at art auctions  The Economist

LADIES AND gentlemen”—the auctioneer scans the room one last time—“the Hockney is sold!” The hammer comes down at $90.3m (including fees). Last month ...


State holds unclaimed property auction  ABC15 Arizona

Unclaimed property turned over to the state will be on display for potential buyers this weekend.


Ex-Judas Priest Guitarist K.K. Downing’s Guitar Auctions for $189,000  Rolling Stone

Former Judas Priest guitarist K.K. Downing's 1967 Flying V has sold in a London auction for approximately $189,000, as Blabbermouth notes. It was on of 11 of ...


Activision forced Al Lowe to cancel his Leisure Suit Larry source code auctions  PC Gamer

Leisure Suit Larry creator Al Lowe put a number of interesting artifacts from his Sierra days up for auction a couple of weeks ago, including the source code for ...


Mexico cancels bidding on two oil and gas auctions  Chron

The Mexican government has cancelled bidding on two auctions that would have allowed hydraulic fracturing in the border state of Tamaulipas and brought ...


Best Picture Oscar From 1947 Sells for Nearly $500K at Auction  Hollywood Reporter

One Academy Award trophy sold for nearly $500000 and the second for well over $200000 in a rare auction of Oscars that ended Friday in Los Angeles.


Looking for land? DNR auctions surplus property today  WLNS

LANSING, Mich (WLNS) - The Michigan Department of Natural Resources will hold a sealed bid auction for 81 pieces of land in both the Upper and Lower ...


Feds hold biggest Utah oil and gas auction in years, setting off heightened concerns from environmentalists  Salt Lake Tribune

The Trump administration's “energy dominance” agenda reasserted itself in Utah on Tuesday with yet another near-record oil and gas lease auction that offered ...


Kingston PD auctions off military hummer  WVLT.TV

Looking for a cool Christmas present? The Kingston Police Department may have just the thing for you--a military hummer.


Auction of wind parcels off Mass. coast draws record $405M in bids  The Patriot Ledger

BOSTON — A lease auction of about 600 square miles acres off the coast of Massachusetts for the development of offshore wind energy has drawn a record ...


Knoxville's Whimsical Villa Vista Estate Auctions On December 8  Forbes

Villa Vista, one of Tennessee's largest estates, comes to auction on December 8th, courtesy of Elite Auctions. The sprawling 1.15-acre property in Bridgemore ...


Trump Auctions Off 150,000 Acres of Public Lands for Fracking Near Utah National Parks  EcoWatch

On Tuesday the Trump administration offered more than 150000 acres of public lands for fossil-fuel extraction near some of Utah's most iconic landscapes, ...


The Machine That Drives the Auction World  The New York Times

A blockbuster week of sales backed by third-party guarantees reassures the art world that the market is humming, if not booming.


Baltimore dirt bike rider Chino Braxton auctions custom bike to benefit local STEM program B-360  Baltimore Sun

Baltimore dirt biker Pacino "Chino" Braxton is auctioning off his custom bike to benefit local program B-360, which aims to educate and attract more students of ...


Police to Auction Off an Inmate’s Designer Sneakers  The New York Times

The police in Gloucestershire, England, will use the proceeds from the sale of 55 pairs of shoes to fund crime prevention initiatives.


Florida Home Once Listed For $159 Million Finally Sells At Auction  Forbes

Florida's Playa Vista Isle had an asking price of $159000000 and just sold at auction for the highest auction price on record in the U.S..


Items owned by Yankee legend Babe Ruth going up for auction  TriStateHomepage.com

(WABC) - Several items that once belonged to New York Yankees legend Babe Ruth will be going up for auction.


Blue Diamonds Take the Spotlight at Holiday Auctions  Barron's

Sotheby's and Christie's will auction a strong collection of rare and important gemstones in New York just in time for the holidays, with both featuring a blue ...


No buyers at Newport auction of 3 impounded boats, which now will make their final cruises to the scrapyard  Los Angeles Times

Newport Beach tried to auction a trio of uncommonly large impounded vessels this week that, despite their abundant character, got no bids.


Winton Woods Riding Center horse auction raises eyebrows  Cincinnati.com

A sealed bid auction by Winton Woods Riding Center is attracting both interest and criticism.


Arizona Department of Revenue's unclaimed property auction set to kick off on Friday  FOX 10 News Phoenix

The Arizona Department of Revenue is gearing up for its annual unclaimed property auction, and there's thousands of unique items up for bid this year. FOX 10's ...


Threadgill's World Headquarters Auctions Memorabilia  Spectrum News

AUSTIN, Texas — Hundreds of people attended Threadgill's World Headquarters auction Saturday, hoping to take home a piece of Austin history. Hundreds ...


Multimillion Dollar Bay Area Estate Heads to Auction Block To Lure Chinese Buyers  CBS San Francisco

WOODSIDE (KPIX 5) – After 7 years of going on and off the market, a multi-million dollar estate in Woodside is going up for auction, ready for an international ...


Mexico oil auctions scrapped as leftist government flexes muscles  Reuters

MEXICO CITY (Reuters) - Mexico's energy regulator on Tuesday canceled two oil field auctions scheduled for February, after the new leftist government said it ...


TVs, fireplace, appliances available at Lock it Up Storage Auctions on Dec. 14  Richland Source

Lock it up storage will offer the following at public auction on Friday, Dec. 14 as a direct result of non-payment of their account. The undersigned has been ...


Mexico cancels oil auctions under new president  FRANCE 24

Mexico City (AFP). Mexico's energy regulator said Tuesday it was canceling its remaining oil block auctions for private firms, the centerpiece of the country's ...


Threadgill's auctions off memorabilia with years worth of memories  KXAN.com

AUSTIN (KXAN) — Back when Congress Avenue was a barley-paved, two lane road, Threadgill's was becoming a place to play the guitar for anyone who would ...


Pearl Harbor museum auctions adventures  AOPA Pilot

December 5, 2018 By Jim Moore. A helicopter journey from Seattle to Oshkosh, Wisconsin, for EAA AirVenture and upset recovery training in jets are among the ...


First Friday in Carbondale tonight is full of holiday events, auctions  Aspen Times

Holiday tradition will fill Friday night as Carbondale hosts multiple events for its monthly First Fridays celebration. Activities will get under way with a special visit ...


Car used by LeBron James as high school senior going to auction  ESPN

The 2003 Hummer H2 used by LeBron James as a high school senior will hit the auction block and is expected to fetch over $100000.


The Car Auctions Are Getting Into the Era of Rad  Jalopnik

Look out, Bring A Trailer: there's a new (well, old) kid on the block ready to sell the over-moneyed masses their next pristinely kept Nissan 300ZX. RM Sotheby's ...


A bunch of Michigan land is going to auction, including a spot in Highland  Hometownlife.com

The auction also includes a couple of parcels in metro Detroit, in Oakland and Livingston counties.


Last minute donation saves Chicago church from auction  Fox News

A 120-year-old Chicago church was saved from auction after a midnight call from a group of donors, which one church official said was "a Christmas miracle."


Zero Bids on Uptown Theatre in Final Days of Auction  businessjournaldaily.com

YOUNGSTOWN, Ohio -- With just two days left on the auction of the former Uptown Theatre, auctioneers are still waiting for the first bid.


Mexico to cancel February auctions for oil, gas blocks including first shale areas: energy secretary  Reuters

MEXICO CITY (Reuters) - Mexico's energy secretary Rocio Nahle said on Saturday that President Andres Manuel Lopez Obrador's newly installed ...


Bring home a piece of the Peabody; museum holding online auctions  Yale News

The Yale Peabody Museum of Natural History is preparing to undergo a comprehensive renovation. In preparation for that transformation, the museum will hold ...


Archaeology Sotheby's auctions off ancient Egyptian artifacts  Al-Monitor

At its Ancient Sculpture & Works of Art event on Dec. 4 in London, Sotheby's auctioned off 59 antiquities. The vast majority of these antiquities were ...


Sharon Tate's wedding dress sells at auction for $56,000  CNN

An anonymous buyer has bagged a ghoulish piece of movie memorabilia after winning an auction for actor Sharon Tate's wedding dress. Tate was murdered by ...


Wheels: How dealer-only auctions work  Conway Daily Sun

The common assumption among consumers of used cars is that dealers get inventory from wholesale auctions, and that's frequently true. Wholesale, dealer-only ...


A photo of Hitler posing with a girl of Jewish heritage auctions for $11,520  CNN

This photograph of Adolf Hitler embracing a young Jewish girl who he called his "sweetheart" sold for $11520 this week.


Sotheby's Magnificent Jewels Auction, Featuring Sinatra and Rockefeller Gems, Reaps $46.4 Million  Forbes

When jewels from big names such as Frank and Barbara Sinatra and Nelson and Happy Rockefeller come up for sale at auction, big things happen. Today's NY ...


First issue of Macworld signed by Steve Jobs fetches $47,775 at auction  AppleInsider

A copy of the first issue of Macworld bearing the rare signature of Apple co-founder Steve Jobs has sold at auction, with the item far exceeding its estimate and ...


EBTH auctions off historic Reds memorabilia: PHOTOS  Cincinnati Business Courier

Cincinnati online estate sale auction house Everything but the House is giving the public a chance to own pieces of Reds history.


Online auctions key to wholesalers' future  Automotive News

Online auctions and the digital tools that accompany them are key to vehicle wholesalers' futures.


Mexico Postpones Clean-Energy Auction  Wall Street Journal

MEXICO CITY—The Mexican government on Tuesday suspended a planned auction of long-term clean-energy contracts as the new administration of President ...


City of Springfield reveals it won Sonrise Donuts sign auction  The State Journal-Register

The anonymous Springfield-based group that won an online auction this week for the historic Sonrise Donuts sign?The city of Springfield.The Springfield's ...


Coins, silver and baseball cards up for ADOR auction on Friday  KTAR.com

The Arizona Department of Revenue will hold a public auction Friday of unclaimed property from safe deposit boxes.


How record-setting art auctions are ruining the old neighborhood  The Washington Post

Art critics generally hate it when an auction house sets a record. Thursday, at Christie's in New York, a painting by David Hockney fetched more than $90 million ...


10-Year TIPS Auctions At 1.109%, Highest In Nearly 8 Years  Seeking Alpha

The last time a 9- to 10-year TIPS auctioned with a real yield above 1.00% was on January 20, 2011, at 1.17%. Buyers got this TIPS at a substantial discount ...


J.M. Davis Museum guns up for auction at Heritage Auctions on Dec. 9  Tulsa World

About 140 collectible firearms from the J.M. Davis Museum are up for bid now through a Dec. 9 live auction date at the Heritage Auctions web site.


Bob Bolus Trucking Equipment on the Auction Block  WNEP Scranton/Wilkes-Barre

PITTSTON TOWNSHIP, Pa. -- Businessman Bob Bolus is closing his truck parts and towing company in Lackawanna County. He held an auction Friday to sell ...


EBTH auctions off historic Reds memorabilia  WKRC TV Cincinnati

CINCINNATI (Cincinnati Business Courier) - Cincinnati online estate sale auction house Everything but the House is giving the public a chance to own pieces of ...


Man auctions daughter as child bride on Facebook, gets 500 cows, 3 cars, $10,000  WSPA.com

A humanitarian organization is outraged after a man in South Sudan used Facebook to auction off his daughter as a child bride.


U.S. Marshals auction off millions worth of seized items  PIX11 New York

MIDTOWN — When white-collar crimes take place, and millions of dollars in assets are seized, where do they go? The U.S. Marshals placed many of those ...


Christie’s Nets HK$2.75 Billion in Hong Kong Fall Auctions  Barron's

Su Shi's masterpiece 'Wood and Rock' sells for HK$464 million.


Fine art, furniture highlight Marion Antique Auctions sale  SouthCoastToday.com

Marion Antique Auctions will offer more than 500 lots of eclectic estate items at its annual Thanksgiving weekend auction.Some of the more important objects ...


Bison Industry Faces Softer Market; Bar 33 Holds Auction to Help  myndnow.com

The bison industry has taken a bit of a dip. Even with a soft market, the Bar 33 auction was still held today in Selfridge. Our Malique Rankin has the exclusive ...


Family auctions off child bride on Facebook  CNN

Facebook is facing backlash after the social network was used by a family in South Sudan to auction off a child bride, even though it is illegal in South Sudan to ...


Bid to play catch with Lorenzen among auctions  MLB.com

LAS VEGAS -- A charitable tradition during the Winter Meetings will continue this week, with the Reds offering once-in-a-lifetime types of experiences that fans ...


A bunch of Michigan land is going to auction: How to bid  Detroit Free Press

The auction also includes a couple of parcels in metro Detroit, in Oakland and Livingston counties.


Heritage Auctions' Beverly Hills US Coins Signature Auction: Lots You Need to Know  CoinWeek

By Charles Morgan and Hubert Walker for CoinWeek ….. On December 13 and 14, Heritage Auctions will conduct their last U.S. Coins Signature Auction of the ...


Yager auction draws a crowd | Local News  Effingham Daily News

EFFINGHAM — An array of sports and celebrity memorabilia caught the eye of one bidder at the Mike and Laurie Yager Estate Downsizing Auction on Friday.


Dakota County soon may auction a Mississippi River island in Inver Grove Heights  Star Tribune

If you're interested in having your own island in the Mississippi River, Dakota County might just have a deal for you. The county next month may put up for ...


Radio auction benefits Operation Santa Claus | State  Olean Times Herald

QUEENSBURY — WCKM radio's Morning Club with Dan Miner and Pete Cloutier began hosting its 20th annual Morning Club Celebrity Auction to benefit ...


Cboe Europe Defends Periodic Auctions  Markets Media

Mark Hemsley, president of Cboe Europe, said volumes have grown in periodic auctions because trades have lower market impact as European regulators have ...


Sears Home Improvement auction canceled due to lack of bids  Chicago Business Journal

A planned auction of Sears Holdings Inc.'s home improvement business unit has been canceled because the retailer didn't receive any qualified bids other than ...


Bob Bolus Holding Retirement Auction in Luzerne County  WNEP Scranton/Wilkes-Barre

PITTSTON TOWNSHIP, Pa. -- A controversial Scranton businessman is getting out of the trucking business with a big sale on Friday. Trucking company owner ...


Einstein's religious views on display at 2 New York auctions  Minneapolis Star Tribune

NEW YORK — Did Albert Einstein believe in God? The famous physicist was constantly questioned about his religious beliefs during his lifetime. Two Einstein ...


Christie's to Auction David Hockney Double Portrait, With $37.7 M. Estimate, in London Spring Sale -  ARTnews

Following on from the $90.3 million sale of a David Hockney masterpiece at Christie's in New York last month, the auction house will offer another high-profile ...


Mark Glen Auctions to host comprehensive restaurant auction  Pacific Business News (Honolulu)

The owners of Loulen's Restaurant in Kalihi are holding a comprehensive auction of their restaurant equipment on Saturday. Mark Glen Auctions is handling the ...


Teen auctions virginity for $100K to help pay her parents' mortgage  KRON4

SYDNEY, Australia (KRON) - A teen in Sydney, Australia who started a website to auction her virginity says she hopes to raise at least $100,000 to pay for ...


Foreclosure auction of ex-Bear Lance Briggs' Northfield mansion OK'd  Crain's Chicago Business

The auction is March 1 for the 15-room home on an acre. Briggs has also has a Northbrook property in foreclosure.


Landmark Sonrise sign goes up for auction  The State Journal-Register

It looks like sunset for the Sonrise Donut neon sign that has welcomed visitors along one of Springfield's original stretches of Route 66 for nearly seven decades.


Questions about consent loom after tech brothel auctions off robot’s virginity for $10K  The Next Web

People can pledge $10000 to be the first person to have sex with a robot at Eve's Robot Dreams brothel in California after receiving $155000 in funding.


Local consumers say they're owed thousands by Tompkins auction company  The Ithaca Voice

FREEVILLE, N.Y. — A Tompkins County-based auctioneer has been ordered to pay nearly $70,000 for taking items on consignment from a museum and not ...


Tim Brown Auctions His 1987 Heisman Trophy for $435K  Breitbart News

Former Notre Dame star Tim Brown's 1987 Heisman Trophy was purchased for $435000 at auction, TMZ Sports reported.


barbara bedell" From Vespers to auctions the season is plentiful  Times Herald-Record

There wasn't an empty seat at the packed Vespers *Service* at Mount Saint Mary College on Dec. 2. The annual *service* is always standing room only and it is ...


Temple art auction held Jan. 26 | Local  Dothan Eagle

The Temple Emanu-El Sisterhood will hold its annual art auction on Jan. 26-27.


Henzel Studio Auctions Carpets by Established Artists  Architectural Digest

Henzel Studio is bringing its colorful creations to a new venue. Known for punchy handwoven styles (of which Robert Downey Jr. is a fan) and collaborations ...


Looks Like the Kids Aren’t Going to College After All: Luke Skywalker’s Lightsaber Is Up for Auction  Vulture

Hollywood auction house in Profiles In History is putting Luke Skywalker's lightsaber from Star Wars: Episode IV – A New Hope up for auction.


Austin Restaurant Threadgill’s Auctions Decades of Memorabilia  Eater Austin

The South Austin location of Threadgill's on 301 West Riverside will shut its doors this weekend, and begin the process of dismantling the historic restaurant.


State regulators clear Millstone nuclear plants to compete in zero-emission energy auctions  Hartford Courant

Owners of the Millstone nuclear power plants will now be able to compete against wind and solar to sell power in “zero emission” state energy auctions as a ...


IPL 2019 auctions | Players with highest base price: 5 takeaways  Livemint

At the 2019 IPL auctions, all eyes will be on the figures that nine cricketers in the highest price bracket will command. Here are five takeaways from the exclusive ...


Queen Elizabeth's Favorite Childhood Doll Is Up for Auction — See the Rare Toy!  PEOPLE.com

Items from Queen Elizabeth's childhood and Princess Diana's clothes are part of Kerry Taylor Auctions' "Passion For Fashion" Auction.


6 questions about tax foreclosure auction Wayne County needs to answer  Detroit Free Press

To fix the Wayne County tax foreclosure auction, you have to understand it. That's a problem.


Marilyn Monroe memorabilia auction fetches more than $1.6M  KOMO News

LOS ANGELES (AP) — An auction of Marilyn Monroe memorabilia has earned more than $1.6 million, including $120,000 paid for a touring version of the ...


‘Hamilton’-Themed Travel Experience Up for Auction  Barron's

Charitybuzz, a leading auction site that institutions use for fundraising, and private jet company Flexjet have partnered to offer fans of the Broadway musical ...


Yale Peabody Museum holding online auctions of surplus items  New Haven Register

NEW HAVEN — Yale University's Peabody Museum of Natural History is holding several online auctions “of items it can no longer use” in advance of a ...


Australian teen auctions virginity to help pay for college, her parents' mortgage  CBS17.com

SYDNEY (KRON) - A teen in Sydney, Australia who started a website to auction her virginity says she hopes to raise at least $100,000 to pay for college, a car, ...


Purse auction raises money for American Heart Association  WIVB.com - News 4

Dozens of purses, many from world-famous designers, went to the highest bidder.


Photos: Beachfront Galveston home heading to auction this month  Houston Business Journal

A beachfront home in Galveston is one of 18 properties in Concierge Auctions' second-annual December Sale, according to a press release. Located at 17007 ...


Burgan Opens Online Auctions with Uptown Theatre  businessjournaldaily.com

YOUNGSTOWN, Ohio – Burgan Real Estate will hold an online auction, the company's first, Dec. 1 for the Uptown Theatre, 2728 Market Street. Bidding will ...


IPL Auction 2019: Chennai Super Kings fans want MS Dhoni-Yuvraj Singh reunion  Hindustan Times

Chennai Super Kings asked their fans for suggestions ahead of the IPL 2019 auctions and Yuvraj Singh was a clear favourite.


India will auction 80 GW of solar, wind capacity by March 2020  pv magazine International

The Indian Government plans to tender 60 GW of solar and 20 GW of wind capacity by March 2020. This would complete the planned auctions for its targets of ...


Frank Sinatra items, including 20-carat diamond engagement ring, make $9M hit at auction  USA TODAY

The private treasures of Frank Sinatra and his wife, Barbara, were a multimillion-dollar hit at auction.


The Biggest Winner of Auction Week and 12 Other Takeaways From New York’s $2 Billion Sales  artnet News

From the biggest winner to the most surprising pass, here are our parting observations from last week's auction marathon. artnet News, November 20, 2018.


Annual Veterans Taxi Medallion Auctions Scheduled on All Three Islands  St. John Source

The annual Taxi Medallion Auction will take place in December on all three islands, according to a press release issued by the management and staff of the ...


IPL auction 2019: Glenn Philips, Shivam Dubey and other underrated players who could trigger a bidding war  Firstpost

The IPL auction is a great opportunity for a few lesser known players to announce their presence to world cricket and here we put together five players who could ...


Hometown Farmer - Wakonda farm toy auctions  Siouxland News

When you're a kid and you dream of being a farmer, it's fun to push little toy tractors and combines around the living room floor. You think those toys are worth ...


home | site map
© 2006