![]() Since you obviously didn't keep good records of what you sold and what you paid for. ![]() Unfortunately, I can't give you the "get out of jail free" card you so badly want. Thanks so much for any help." A: A lot of longtime eBay sellers are waking up and finding out they should have been paying taxes on their selling profits. I take medication to deal with the problems of excessive worrying, depression, and anxiety, and this kind of situation could trigger them again, which scares me. The thought of having to go back over the past few years and amend our tax returns because I may have made a profit selling something on eBay or in my local pennysaver paper makes me feel ill from the stress. I do not count on this for my income and never considered it a business. Much of the stuff I list on eBay does not even sell and when I pay eBay's fees I suffer a loss, but some things I have gained on. Some of them I have donated to thrift stores and some I have been selling on eBay. I also became addicted to eBay a few years back, and for about three years got caught up in buying way too many things- mostly dolls, teddy bears, and old toys-mementoes of my childhood. I have made myself stop because I end up buying things I do not need. Not to mention that I have always loved shopping at yard sales and thrift stores, which has caused my home to be very cluttered. My daughter is now twenty-two, and I have saved much of her childhood stuff also. I have things around my home that I have been saving and collecting for many years. Q: "I am confused and sick in the stomach about the issue of selling on eBay and dealing with the IRS.Determining the Cost of Your eBay Inventory for Tax Purposes Q: "If I sell something that was worth $10 about fifty years ago for $200, do I have to pay tax on the full $190 difference? Is there any adjustment for inflation?" A: Regrettably, our tax system in the United States is not indexed for inflation when it comes to calculating capital gain taxes.If your kids use it even some of the time for playing video games, or if your spouse uses it to crunch spreadsheets for his day job, you have to determine the percentage of time the computer is being used for selling on eBay and. Q: "Can I deduct the cost of a laptop computer I use in my home-based eBay selling business?" A: Yes, but only if you use the computer exclusively for selling on eBay.What you have to do is calculate the cost of goods sold (COGS) of the item you sold on eBay. Calculating Your Cost of Goods Sold (COGS) Q: "When I determine how much money I made on eBay, do I simply subtract the eBay and PayPal fees from the winning bid amount?" A: No, I'm afraid it's a little more complicated than that.1 $ 250,000 Plus: Cost of goo*d s manufactured (from schedule of work in process). Schedule of Cost of Goods Sold The determination of cost of goods sold is made via an examination of changes in finished goods: KATRINA'S TRINKETS Schedule of Cost of Goods Sold For the Year Ending December 31, 20X6 Beginning finished goods inventory, Jan.
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