Tax Responsibilities for Online Auction Sellers

	Baie-Comeau >Community



Tax Responsibilities for Online Auction Sellers So you thought you could outsmart Uncle Sam by doing your selling from your Baie-Comeau home. Well ha ha, big brother can track you there, just like one of those creepy holographic images in movies. Many people are using the Internet as a place to sell goods. If you sell your personal property and do not make a financial gain from the sale, you will not owe taxes. But if you do make money from the sale, you may have federal tax responsibilities. You may be subject to liabilities for income tax, self-employment tax, employment tax, or excise tax. Your sales may result in capital gains, nondeductible personal losses, or you may have ordinary business income. The Internal Revenue Service (IRS) requires online sellers who are selling for a profit and earn income from this activity to report it. Additional information about the tax responsibility of online auction sellers is available.

Baie-Comeau >Community