Sell things on Amazon or EBay? Do you think most people pay taxes on profits?
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Always amazes me when someone admits to tax evasion on a discussion forum.
That isn't admitting tax evasion. It's interesting you'd come to such a dramtic conclusion, then put emphasis on someone's post as doing such.
That is saying that is what he put in his pocket. Profit, his definition of it.
But as we know, or most of us *I thought* taxes are complicated and allow for things such as .56 cents per mile, while at this time, gas is so low right now ...you will profit. Profit meaning make money on the deal. Just as Truckers often make a profit that way, much of their income is derived from that.
That isn't admitting tax evasion. It's interesting you'd come to such a dramtic conclusion, then put emphasis on someone's post as doing such.
That is saying that is what he put in his pocket. Profit, his definition of it.
RIF.
Here is the original post that I responded to:
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Originally Posted by questioner2 So, do you think most people report this income and does Amazon or EBay report this information to the IRS?
I never did, probably made around 20k in profits over the last 10 years.
He claimed that in spite of making $20k in profit, none of it was reported. All self employment income must be reported and a return filed if self employment earnings exceed $400. Even if self employment income doesn't exceed $400, it must still be reported if there are any other circumstances that would require a return to be filed.
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But as we know, or most of us *I thought* taxes are complicated and allow for things such as .56 cents per mile, while at this time, gas is so low right now ...you will profit. Profit meaning make money on the deal. Just as Truckers often make a profit that way, much of their income is derived from that.
That is NOT tax evasion
Interesting, but it has nothing to do with what is being discussed.
I will stand by my original statement. Failure to report income from self-employment is tax evasion.
Ball is in your court. Tell us all about how NOT reporting self-employment income ISN'T tax evasion.
The thread seems to have morphed into 'What amount Ebay or Amazon report to the IRS, thus increasing the likelihood one might get caught for NOT paying taxes on profit.' I guess the assumption is that one is foolish for paying taxes, if one can avoid getting caught for not paying them. Wasteful Government spending certainly make it seem like our hard-earned dollars are simply being flushed, but, IMO, these answers reflect a declining moral standard in simply 'being honest and doing what is right'.
He claimed that in spite of making $20k in profit, none of it was reported. All self employment income must be reported and a return filed if self employment earnings exceed $400. Even if self employment income doesn't exceed $400, it must still be reported if there are any other circumstances that would require a return to be filed.
Interesting, but it has nothing to do with what is being discussed.
I will stand by my original statement. Failure to report income from self-employment is tax evasion.
Ball is in your court. Tell us all about how NOT reporting self-employment income ISN'T tax evasion.
That is his version of profits, it doesn't equate to he made that amount. I guess you don't get that. I've sold on EBAY, trust me, it always seems like you make alot. But when you add in all the variables, $20,000 can easily be jewed down to being at a level where he doesn't need to fine taxes.
I haven't met one EBAY SEller who even remembers all the crap they bought that never sold, or that sold but the fees were not refunded to him because for years, the buyers had to approve it. The wear and tear on the vehicle, the ink, the printer, the computer etc..the batteries purchased just to test the item, the long distance calls to the buyers at times. The postage which came back...the packages which though they were sent, the buyer was refunded because he said it didn't show up. It is VERY difficult to make money off of Ebay. Amazon is much easier, and fees are taken out RIGHT THEN. No surprises later but even then, remember all of the variables involved.
People often claim they profit because they are not good accountants it's not their fortei.
Don't believe everything you hear, especially with something as confusing as EBAY and their fees.
Don't worry so much about those who make such a small amount not filing taxes. There's a good chance they'd get money back anyhow, use some logic.
That is his version of profits, it doesn't equate to he made that amount. I guess you don't get that. I've sold on EBAY, trust me, it always seems like you make alot. But when you add in all the variables, $20,000 can easily be jewed down to being at a level where he doesn't need to fine taxes.
I haven't met one EBAY SEller who even remembers all the crap they bought that never sold, or that sold but the fees were not refunded to him because for years, the buyers had to approve it. The wear and tear on the vehicle, the ink, the printer, the computer etc..the batteries purchased just to test the item, the long distance calls to the buyers at times. The postage which came back...the packages which though they were sent, the buyer was refunded because he said it didn't show up. It is VERY difficult to make money off of Ebay. Amazon is much easier, and fees are taken out RIGHT THEN. No surprises later but even then, remember all of the variables involved.
People often claim they profit because they are not good accountants it's not their fortei.
Don't believe everything you hear, especially with something as confusing as EBAY and their fees.
Don't worry so much about those who make such a small amount not filing taxes. There's a good chance they'd get money back anyhow, use some logic.
Based on your post, you appear to be confusing profit with revenue. Profit is what is left after all of the various expenses that you have listed (among others) have been taken out. Profit is what you made. One is taxed on profit, not revenue.
I'll stand by my original, and correct, statement. To not report and pay taxes on profit is tax evasion.
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