Editing Challenge
Fri, Jan 30
Mrs. Julie Noriega 392 Blue Lagoon Way Orlando, FL 32814
Dear Julie:
3392 Econlockhatchee Trail Orlando, FL 32822-6588 407.891.2330 garth.peterson@raintree.com
I am sending you this letter, as your Financial Planner, I am glad to respond to your request for clarification on the Tax status of the eBay profits.
As you in all are probably aware , you can use eBay to clean out your closets or eBay can be used to run a small business. Your smart to enquire about your tax liability. Although there is no clear line that separates fun from profit or a hobby from a business. One thing is certain, the IRS taxes are all income.
There are a number of factors that help determine whether or not your hobby should or should not be considered a business. To use eBay safely the following questions should be considered:
1.
Do you run the operation in a business like manner? Do you keep records? Is your profit and loss tracked, and how about keeping a separate checking account?
2.
Do you devote a lot of time and effort to eBay? If you spend eighteen hours a day selling on eBay the IRS would tend to think your in a business.
3.
Some people depend on the income from their eBay activities for their livelihood.
Are you selling items for more then they cost you? If you spend four dollars for a Garage Sale vase and sell it for fifty dollars the IRS would probably consider this a business transaction. All profits is taxable. Even for eBay sellers who are just playing around. If you wish to discuss this further please call me at 551-8791.
Sincerely,
Garth Peterson
Certified Financial Planner
Mrs. Julie Noriega 392 Blue Lagoon Way Orlando, FL 32814
Dear Julie:
3392 Econlockhatchee Trail Orlando, FL 32822-6588 407.891.2330 garth.peterson@raintree.com
I am sending you this letter, as your Financial Planner, I am glad to respond to your request for clarification on the Tax status of the eBay profits.
As you in all are probably aware , you can use eBay to clean out your closets or eBay can be used to run a small business. Your smart to enquire about your tax liability. Although there is no clear line that separates fun from profit or a hobby from a business. One thing is certain, the IRS taxes are all income.
There are a number of factors that help determine whether or not your hobby should or should not be considered a business. To use eBay safely the following questions should be considered:
1.
Do you run the operation in a business like manner? Do you keep records? Is your profit and loss tracked, and how about keeping a separate checking account?
2.
Do you devote a lot of time and effort to eBay? If you spend eighteen hours a day selling on eBay the IRS would tend to think your in a business.
3.
Some people depend on the income from their eBay activities for their livelihood.
Are you selling items for more then they cost you? If you spend four dollars for a Garage Sale vase and sell it for fifty dollars the IRS would probably consider this a business transaction. All profits is taxable. Even for eBay sellers who are just playing around. If you wish to discuss this further please call me at 551-8791.
Sincerely,
Garth Peterson
Certified Financial Planner