The legalities of selling on eBay...

[matar84]

Can someone elaborate on this a bit?

Is it legal to purchase items from retail stores and then re-sell them on eBay? (without reporting income)

Lets say, 10 or 20 expensive things a month (several hundred a piece). Or even hundreds of non-expensive items (several dollars a piece).

What are the legal matters involved here in regards to making income.

I do know that you do not charge sales tax for other states (only your own)... but would you even have to pay/report sales tax of your own state? Because you do not need a reseller ID number to sell on eBay.

Also, income in general (forget about sales tax)... do you have to report that if you constantly sell on eBay?

[coryl]

If you sell on Ebay for a living, you probably would be required to report it. If you do little bit of side trading, I don't think its necessary (although i'm sure my/your government would say it is necessary to report it)

[hitmanuk2k]

i would think if you earn a living from it, you have to report it. well, i say have to, i mean if you have another job other than what your making on ebay, then no one would ever really know you made a lot of extra income from ebay.

[MG315]

if your earnings are minimal, there's no real point. But if you are earning $200K/yr from eBay and keeping a $30K/yr job (and only declaring the job as income) you will most definately be audited for living above your means.

Just ask yourself is it a hobby or a job? if the former, don't bother; if the latter, report it.

[Steelsun]

I would hazard to say if you make more than $600 a year profit on ebay, you better get with an accountant to minimize your exposure. Since you are in effect running a business, you'll need to cover the bases: sales tax for sales within your state, income tax, etc.

Failure to do this could be very harmful to your wallet and time, and as the IRS and state revenue agencies are checking into web income more and more, you will eventually be found.

One thing to remember, the person buying an item for you may report the purchase on their taxes if using it for a business or charitable gift, therefor the gov will backtrack to you and ask why you never reported it (ignorance is no excuse) and fine you for it.

[JakeCop]

On a similar note what about affiliate schemes? At what point should it all be declared? Is it worth it if you earn less than $100 per year for example?

[aspen]

UK will be different from the US. Here in the US you should report all of your income (that can be proven anyways, if you make $50 at a garage sale or $20 playing poker don't worry about it). With only $100 you won't have to pay anything, but you should still file a return.

[lilyana]

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So I bid on a car on e-bay... the bidding was not over and I decided to call the seller and make him an offer... he accepted and I said I would go over and look at the car... he then called back minutes later and stated that there was a problem with the exhust (which was not stated on the page)...... I stated I was unsure about it but said I would still look at it... he then called back and saying that the car was not under his name and that he would mail me the title in a week... I was very uneasy and clearly told both him and his wife that I no longer wanted to purchase the vehicle... they are now sending me e-mails threatening to sue.... is this legitamate? can they do that?

[Lil_Red]

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So I bid on a car on e-bay... the bidding was not over and I decided to call the seller and make him an offer... he accepted and I said I would go over and look at the car... he then called back minutes later and stated that there was a problem with the exhust (which was not stated on the page)...... I stated I was unsure about it but said I would still look at it... he then called back and saying that the car was not under his name and that he would mail me the title in a week... I was very uneasy and clearly told both him and his wife that I no longer wanted to purchase the vehicle... they are now sending me e-mails threatening to sue.... is this legitamate? can they do that?

Have you reported the issue to Ebay? Did you sign a contract regarding the car?