Language Selection

English French German Italian Portuguese Spanish

IRS may consider eBay sales taxable income

Filed under
Web

Hawking baby and children's clothes - along with some garage sale and thrift store bargains - on eBay helps Sunni Wojnarowsky bring in some extra money so she can afford to stay home with her two young boys. The additional dollars are great, but does she really need to hassle with the paperwork and report her small profit to the Internal Revenue Service? Her question, posed to the online auction site's discussion board for sellers, generated much advice - and more confusion.

In tax law, there is no clear, bright line that separates fun from profit, or a hobby from a business. But IRS instructions make it clear that all income - a category that includes bribes, gambling winnings, kickbacks and money made in illegal activities - can be taxed.

"You can't get an answer from anybody," Wojnarowsky said in an interview from her home in Brunswick, Ohio. "It would be nice to have a straightforward answer of yes, you file taxes, or no, you don't."

More than 135 million people have registered to use the auction site that calls itself "the world's online marketplace." Buyers bought more than $34 billion worth of merchandise there last year.

Some people make money by cleaning out items from their closets; others use the site to run small businesses.

"When you're working on the Internet, it's kind of a gray issue," said Bart Fooden, a certified public accountant in Woodbury, N.Y., who advises small businesses and individuals. "The big issue is whether you're doing it as a business or not."

Full Story.

More in Tux Machines

Blackphone unveils a new phone and tablet running secure, encrypted Android

Today at Mobile World Congress, the encrypted phone system Blackphone announced a new phone and tablet, along with a new business focus on enterprise. The phone is called the Blackphone 2, a successor to the first Blackphone shown at MWC last year, but adds a new processor, better screen, and a larger profile overall. The tablet, called the Blackphone+, is slated for release in the fall. Both run Blackphone's secure OS, forked off of Android, which is designed to protect metadata and provide end-to-end encryption throughout. Read more

Oracle VirtualBox Updates to run on Linux 4.0 Kernel

The open-source VirtualBox virtualization project is out with its 4.3.24 update today providing a number of important updates and bug fixes. Read more

Qbo Is an AI-Driven Ubuntu-Powered Cute Little Robot - Video

We've seen some interesting devices coming out of the Mobile World Congress in Barcelona and the small Ubuntu-powered Qbo robot is just one them. Linux fans already kind of knew what to expected to see in Barcelona. Many Ubuntu fans were looking to check out the first Meizu MX4 Ubuntu Edition phone and their curiosity was satisfied, but now we have something that it's equally interesting, and that is a small robot. Read more

Ubuntu MATE Is One of the Last Major Distros to Officially Support PowerPC

Ubuntu MATE has been providing PowerPC support for some time now, but the developers have made some serious improvements to this particular feature in the latest 15.04 Beta 1 update. Read more