Does paypal / Ebay report money you make to IRS?

[george graves]

Hey guys...care to get back on topic for me?

Thanks!

[Brew]

I can see this thread quickly turning into a heated political debate. Whoops.

[nitro325is]

I hope not.I made about $18000 last year off ebay and about 12 so far this year.

becareful as the IRS does watch sites like that. This is why I don't sell on Ebay.

Yeah i figure that which is why I try to end stuff early and sell it offline as many times as possible.If they get me then they get me.Im shutting it down this december as soon as i get my degree...use proceeds to finance school.
My present job taxes all prizes and giveaways.My buddy won a 16 day cruise fro being top salesrep and had to agree to pay about $1200 in taxes before he could accept it.Talk about bullshit IRS laws.I won a stupid GIANT turtle from Findng Nemo and they asked me to pay $76 of taxes cuz it was worth like $800.We do sales for Time Warner.

[nando]

I don't think they do. just like they don't track money you might make from having a garage sale, or mowing lawns. you're supposed to report all income, but the only stuff that matters is income made from an employer or from a buisiness.

btw, I've been audited before.. bastards wanted like 1/3rd of the income I made one year.

[george graves]

Well if you withdrawl or deposit a large sum of monei into the bank (say $10k or something) it get reported to the IRS...

In a way paypal IS a bank....Were are wondering if we can just cash out our paypal and never report it.

[Rob]

do it in less than $10k increments

[M-technik-3]

I don't think they do. just like they don't track money you might make from having a garage sale, or mowing lawns. you're supposed to report all income, but the only stuff that matters is income made from an employer or from a buisiness.

btw, I've been audited before.. bastards wanted like 1/3rd of the income I made one year.

Everything you listed is a reportable item. True. What I am saying is that people are now making a living off of selling stuff on Ebay. So what the Feds are just going to turn a blind eye on revenue? I don't think so and I work for them so I know a little about it too.

The feds have cracked down on online gambling, guess what will be next, Fantasy Leagues. Big money in those. My unit has one and guess what at $50.00 a race times 50 players, the winnings get big. Last year they had their finally in Vegas.

I read alot while on the plane as what else am I going to do. And alot of finacial papers have made mention of money in Ebay. Look at their stock, it's performing well and they have been featured on 60 minutes.

For the small average joe under $2000.00 a year i wouldn't worry to much but if your making upwards of 5K I would think about it.

[brodee]

Remember also that it is "income" tax, meaning you are only paying tax on the income made by selling on ebay. That is the sale price minus the cost to you. I'm not sure what you sold on there but if you can "find" a receipt showing you paid as much or more than you sold it for then there is no income, and therefore no taxes to pay.

[M-technik-3]

True but some buy stuff at consignment shops for a buck and sell for $100 that's all profit.

[AndreNY]

then move?

Why? Because the American government can't mind its own fucking business and leave other people/countries to their own devices?

i agree 110%

[RedBaron86325]

There are two important people in California trying to get Ebay/PayPal to report ALL sales/activity to the IRS. I am sure there are others around the country trying this same thing. I'd look for it to happen in the near future. Thank you Barbara and Diane.