Is Selling On eBay Just A Hobby Or A Real Business? > NetSparsh

Home
>
Online Auction
>
Is Selling On eBay Just A Hobby Or A Real Business?

Is Selling On eBay Just A Hobby Or A Real Business?

Q: I made extra money selling things on eBay last year. These were items I picked up at yardsales mostly. My husband says I am responsible for paying income tax on the money I made, but I disagree. This is just my hobby, not a business. What do you think? -- Gladys A.

A: With so many people selling on eBay these days this is a question I get all the time. To many eBay sellers the thought of running an actual business is about as appealing as getting negative feedback, so they go out of their way to convince themselves that selling on eBay is really "just a hobby" and therefore, should not be susceptible to income tax laws.

While you might think selling on eBay is just a hobby and the extra money you're making is not reportable as income, depending on the circumstances, the IRS just might disagree with you.

The IRS rules are clear: you must pay taxes on all personal and business income and that includes money you make selling on eBay.

In its most basic sense, the IRS rules mean that if you buy a vase at a garage sale for $10 and sell it on eBay (or elsewhere) for $20 you made a $10 profit and therefore must report it as income and pay Uncle Sam his fair share.

In reality, if you are a casual seller who only sells a few items on eBay every now and then it's doubtful the IRS is going to lose much sleep over the few bucks you make.

However, if you consistently sell on eBay the IRS may deem your activities to be business oriented and you will be required to file a Schedule C and claim the income.

The IRS uses a number of factors to determine if a hobby is really a business. These factors include:

1. Do you carry on the activity in a business-like manner?

If you conduct your eBay activities in a business-like manner, i.e. you keep business records, track profit and loss, keep a separate checking account, etc. then whether you think so or not, your hobby is really a business.

2. Do you spend considerable time working on your hobby?

If you put considerable time and effort into your eBay sales, the IRS may contend that you do so for profit and not fun. It seems the folks at the IRS don't believe in doing things strictly for pleasure. My guess is, neither do you. If you weren't making money selling on eBay I doubt you'd bother getting up at 4 a.m. to hit all those yardsales.

Then again, maybe you would... :o)

3. If you depend on income from your eBay activities for your livelihood?

If so, it's a business, not a hobby.

There are a number of other factors the IRS uses to determine if a hobby is really a business, but that covers the basics.

You can learn more at the IRS website at www.irs.gov.

What's eBay's take on all this?

eBay is vehemently opposed to anything tax related (especially the forced collection of sales tax, which is a whole 'nother issue). It's understandable that eBay is not a fan of the IRS since trying to enforce tax rules on buyers and sellers would undoubtedly be detrimental to the way eBay does business.

eBay does not does not issue 1099 tax forms to sellers, nor does it report seller's sales figures to the IRS. eBay considers itself a faciliator, i.e. they provide a marketplace in which buyers and sellers come together to do business.

However, since eBay is not directly involved in the transactions that take place between buyers and sellers, it would be impossible for eBay to report sales figures. Furthermore, eBay does not track if a seller actually gets paid by the buyer, so they have no idea how much money actually changes hands, making it impossible for eBay to issue accurate 1099s to sellers.

On the bright side, if you do sell on eBay as a business you can deduct a number of business expenses, including the cost of inventory, listing fees, shipping, envelopes, packing materials, etc. You might also be able to deduct things like the purchase of a computer for business use, office space (even if it's a home office), office supplies, and more.

I'm not accountant (nor do I play one on TV), so please do not take any of this as tax advice or legal opinion. Talk to your accountant if there's any doubt as to whether you should or should not be paying taxes on your eBay earnings.

Here's to your success!

Tim Knox

Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox. Tim serves as the president and CEO of three successful technology companies and is the founder of DropshipWholesale.net, an online organization dedicated to the success of online and eBay entrepreneurs.

In The News:

Aumann Auctions' Pre-30 Auction Breaks World Record for Tractor Sale PRNewswireNOKOMIS, Ill., July 16, 2019 /PRNewswire/ -- Aumann Auctions' Pre-30 Auction on April 12-13, 2019, brought total sales of $4.2 million plus set a world record.

ADECA moves surplus property auctions online WSFAThe Alabama Department of Economic and Community Affairs announced they will move Alabama's public surplus property auctions to the internet starting this ...

A handful of exceptional auctions in Monaco Monaco TribuneOn July 20th, the Auction House will present a host of Russian paintings, while on July 21st, at the Yacht Club, contemporary art (paintings...

Bangalore Metro to auction items left behind by commuters The HinduA unique auction to be held in the city will see bidders hoping to lay their hands on helmets, lunch boxes and umbrellas, among other things. The Bangalore ...

Hake's Auctions sets world record for Star Wars toy York DispatchThe York-based auction house broke a new record this past weekend.

Property auctions are selling at rates not seen in more than 12 months as Sydney and Melbourne recovery continues Business Insider AustraliaFalling property markets in Sydney and Melbourne may have finally bottomed out, with auctions selling strongly for the fourth consecutive week.

SGX seeks price limits on stock auctions after $41 bln flash crash ReutersSingapore Exchange's regulatory unit is proposing imposing price limits for daily stock auctions to prevent incidents such as the $41 billion flash crash in ...

Lewis Capaldi auctions Star Wars Chewbacca mask for charity amid Noel Gallagher drama Evening StandardA Chewbacca mask worn by Lewis Capaldi at TRNSMT festival has raised more than £5000 for charity just 12 hours after going up for auction. The Scottish ...

Trai refuses to budge on 5G spectrum pricing in upcoming auctions Business StandardThe Telecom Regulatory Authority of India (Trai) on Monday reiterated its recommendation on spectrum pricing in the upcoming auctions. In response to the ...

Dairy product prices gain for first time in five auctions sharechatDairy product prices rose at the Global Dairy Trade auction, climbing for the first time in five auctions, on stronger appetite for milk powder.

Auction to raise funds for cancer kids at PGH BusinessWorld OnlinePABLO PICASSO once said, “Art washes away from the soul the dust of everyday life.” Some people, like children with cancer, don't have the benefit of everyday ...

Sotheby's auctions 100 rarest sneakers ever: Moon Shoe to Jeter Air Jordans New York Post Sotheby's is partnering with Stadium Goods for an online auction of 100 pairs of the rarest sneakers ever produced: From Nike's Moon Shoe to the Adidas NMD ...

Sotheby's Auctions Off 100 of the Rarest Sneakers in History NBC New YorkSotheby's in New York is hosting an auction of what it is calling the “Ultimate Sneaker Collection,” and some of the coveted shoes are already sold.

Andrew Jones Auctions will hold back-to-back auction events, July 27th and 28th, in downtown Los Angeles, EIN NewsAndrew Jones Auctions will present two days of amazing sales for savvy buyers, collectors and decorators looking for a new way to acquire great pieces.

Sydney, Melbourne auction clearance rates hit highest for a year Sydney Morning HeraldThe housing market showed signs of bouncing back in the June quarter as the auction clearance rate hit a one year high across Australia's capital cities.

Report: Reverse auctions on the rise among younger procurement professionals Supply Chain DiveThe use of reverse auctions, in which potential suppliers attempt to underbid each other to win a contract, are on the rise, according to a report from Scout RFP, ...

Becker auctions trophies, raises over £680,000 ESPN IndiaGerman tennis great Boris Becker has raised more than £680,000 in an online auction with the sale of his trophies and memorabilia. The 51-year-old was ...

St. Joseph Area Auction • Friday, July 19 | Auctions ECM PublishersFarm Estate Auction • 10:30 a.m.. Due to the death of my husband, I will sell the following at auction located 2 miles northeast of St. Joseph, MN on County #133, ...

Tea Board to set minimum auction price, The HinduTea Board of India is planning to set a floor price for the sale of tea at auctions. It is also planning to take about 100 million kg of tea away from India's output ...

U.S. Government Bond Auctions Show Weakness The Wall Street JournalU.S. Treasury prices fell this week after investors submitted fewer bids than usual at a series of government bond auctions, underscoring the centrality of their ...

UPDATE 1-European Union auctions 2.775 mln spot carbon permits at 29.1 eur/t Reuters Africa(Adds cover ratio). LONDON, July 16 (Reuters) - The European Union sold 2.775 million spot EU carbon permits on EEX at 29.1 euros per tonne each on ...

Offshore wind auction could raise millions for Queen The GuardianCrown Estate holds rights to seabeds around British Isles for wind and wave power.

Find your dream car in one of these two online auctions Classic DriverClassic Car Auctions' current online sales are offering more than 120 classic and modern collector cars at fair prices. But if you want to secure your dream car, ...

Andrew Jones Auctions will hold back-to-back events, July 27th-28th, in downtown Los Angeles ArtfixDailyItalian parcel gilt sterling silver model of the H.M.S. Victory from the second half 20th century, 18 inches tall by 23 inches long, silver weight approx. 37 oz. troy ...

London Auctions enters liquidation with vendors left unpaid antiquestradegazette.comLondon Auctions Ltd is insolvent and has entered liquidation proceedings. The west London firm, based at 30-34 Chiswick High Road is understood to have ...

Rare KAWS Bus Stop Painting to Lead Landmark Heritage Auctions Sale HYPEBEASTFollowing its monumental collection of KAWS Companions last year, Heritage Auctions continues to gather sought-after artworks with its forthcoming Urban Art ...

Marvel Auctions Off Cancelled Netflix Show Props GeekNow that Jessica Jones has aired its third and final season, the Netflix streaming TV offshoot of the Marvel Cinematic Universe is truly over. It's time to get excited ...

Concierge Auctions strikes up Sotheby's alliance in Italy PrimeResiThe US-based luxury auction house has partnered up with the Italian arm of Sotheby's International Realty, promising to 'transform' the homebuying experience ...

Mexico's moratorium on oil auctions gives rival Brazil an edge WorldOilMexico's moratorium on auctioning off its oil riches to foreign producers is giving a leg up to nearby rivals Brazil and Guyana.

'Blacks-only' municipal car auction sparks fury | The Mercury Independent OnlineDurban - THE eThekwini Municipality has come under fire for its controversial decision to exclude Indians and coloureds from taking part in an official car auction ...

ADECA to offer surplus property auctions online | News Times DailyMONTGOMERY — An Alabama Department of Economic and Community Affairs partnership with GovDeals.com and GSAauctions.gov will allow the agency ...

Aurora Pijuan auctions Miss International crown for Gem-Ver fishermen RapplerMANILA, Philippines – Aurora Pijuan is auctioning off the Mikimoto crown she won in the 1970 Miss International pageant, and is giving the proceeds to the 22 ...

Auctions showcase 4-H animals, breeds family tradition Jacksonville Journal-CourierFor many of the students who showcased their animals Monday at the Morgan County 4-H auction, it is a family tradition and a family event. The auction at the ...

What do I bid? What do I bid?: Platform launched to automate shipping for auction houses and bidders FreightWavesA platform was rolled out on Tuesday that automates the shipping process for auction houses and bidders of high end items.

Regulators Eye the Auctions That Decide Which Web Ads You See The Wall Street JournalWhen you load a website, an electronic auction happens in milliseconds to determine which ads show up on your screen. Now, privacy regulators in Europe are ...

Low auction numbers and an overall sales rate of 37% at Barfoot & Thompson's auctions last week Interest.co.nzAuction numbers ticked along on their winter lows at Barfoot & Thompson last week, with the agency marketing 70 residential properties for auction ...

Govt to auction 41 new coal blocks 'very shortly' MoneycontrolA committee, comprising coal and power secretaries, and Member (Traffic) of Railway Board reviews coal transportation and supply on a regular basis.

5G spectrum auctions might have a ‘buy now pay later’ scheme Business Insider IndiaThe government has refused to make 5G spectrum cheaper on the recommendations of the Telecom Regulatory Authority of India (TRAI). The government is ...

Olivia Newton-John to auction off 'Grease' looks for cancer research Page SixOlivia Newton-John is auctioning off some of the most iconic looks from her career, including her "Grease" all-black outfit, Pink Ladies jacket and pants and her ...

RTA to auction off 200 distinctive plates online on 28 July Emirates 24|7Dubai's Roads and Transport Authority (RTA) is offering 200 distinctive number plates of 3, 4 and 5 digits at the forthcoming 57th Online Auction. Plates on offer ...

Top 10 Most Expensive Car Auctions Interesting EngineeringIf you don't think much about cars, there are some people out there who absolutely love them. As these ten of the most expensive cars ever sold at auction will ...

Those Poor U.S. Bond Auctions Are Adding Up BloombergBy any credible measure, the U.S. has become less creditworthy under President Donald Trump. Total debt outstanding has risen by $2 trillion to $22 trillion ...

Spectrum auctions: Govt hopes to garner a modest Rs 30,000 crore The Financial ExpressThe government has also asked Trai to review the spectrum reserve price because it is seen on the higher side. Trai is yet to respond to the government's ...

Nervous sellers jump the gun on auctions The Australian Financial ReviewNervous sellers and buyers starved of options are striking deals soon after homes are listed for sale rather than risk going to auction in an unpredictable market.

Spectrum auctions in India likely in second half of 2020: Moody's Economic TimesNEW DELHI: The proposed spectrum auctions in India, which includes radiowaves for 5G technology, are likely to be held only in the second half of 2020 or later ...

A look at the most interesting Philip Roth possessions up for auction The Times of IsraelSome of the late Jewish author's typewriters are among the 129 items from his estate to be sold next week, with proceeds going to charity.

AEW Announces Partnership with LiveSource Mobile Auctions App LordsofPain.netLiveSource Announces Partnership with All Elite Wrestling. SAN DIEGO (July 15, 2019) — LiveSource, the mobile app that enables its partners the ability to offer ...

Garfield Art Heads to Auction The New York TimesSome of the original artwork for the comic strip, originated by Jim Davis in 1978, is up for grabs starting Tuesday.

Artworks from 'Garfield' comic strip heading to auction - The Jakarta Post Jakarta PostHeritage Auction is now offering examples of the original artwork for the Garfield comic strip, as part of a series of auctions of the Jim Davis Collection.

Government Seeks Over $1 Billion Investment With New Oil Block Auction NDTV NewsThe government awarded 32 blocks in the latest two exploration licensing rounds called the open acreage licensing policy.

Three vehicles owned by Elvis Presley going up for auction WREG NewsChannel 3Elvis Presley fans can take to the road in his personal stretch limousine, on his last motorcycle or in a pickup truck if they have the money, an auction house ...

Auction: 100 of the rarest sneakers in history Yahoo FinanceSneaker and streetwear marketplace Stadium Goods partnered with international auction house Sotheby's on a first-of-its-kind online-only sneaker auction.

Centre in favour of mine auctions, but States seek more clarity in rules BusinessLineKarnataka begins auction of mining leases expiring in March 2020.

Nearly 3 lakh kg more tea on offer in coonoor auctions BusinessLineThe rising trend seen last few weeks in the offer for the auctions of Coonoor Tea Trade Association continues this week with a volume of 21.96 lakh kg being ...

Italy to hold first 500 MW renewables auction on September 30 pv magazine InternationalAccording to the new auction schedule approved by the Italian Ministry of Economic Development, three more renewables procurement exercises will be held ...

Manchester hotel most popular online property auction listing BuyAssociationOnline property auctions are an increasingly popular way of buying and selling, and one hotel in Manchester's Trafford area has created a bidding war.

Hospice Labor Day Auction WGAL Susquehanna Valley Pa.Hospice and Community Care's Labor Day Auction is celebrating 35 years! Advertisement. Starting August 31 at the Solanco Fairgrounds, enjoy specialty ...

Revenue dept auctions prime plot worth Rs 3 cr, buys it for Re 1 Pune MirrorLand was forcefully taken from farmer who refused to pay fine; penalty was imposed on him for not handing over 1.5 acres to a project affected person for the last ...

Flensburg Area Auction • Sunday, July 21 | Auctions ECM PublishersSacred Heart Church Auction • 1:30 p.m.. Located 10 miles west of Little Falls or 14 miles east of Long Prairie on Hwy. 27, then 1ó miles south on Dove Road in ...

Christie’s Intractability on Tutankhamun Statue Lays Bare Auction Houses’ Greed International Policy DigestChristie's decision to defy widespread protests to sell a 3,000-year-old bust of King Tutankhamun to a secret buyer fits neatly with auction houses' history of ...

His auctioneering career began with wrangling pigs. Now he runs an auction house Los Angeles TimesAndrew Jones is the founder of Los Angeles' newest auction house, Andrew Jones Auctions. His career in the auction business spans four decades.

Result of the auction of 0.25 per cent DGB 2022 and 0.50 per cent DGB 2029 Yahoo FinanceBids, sales, cut-off price, pro rata and yield are presented in the table below: ISINBid mill. DKK (nominal)Sale mill.DKK (nominal)Cut-off pricePro.

Art Collectors Get Picky at London Auctions The Wall Street JournalSome trophy paintings went unsold at recent London sales, where collectors chased after lesser-known artists more than household names.

Christie's auctions Mughal objects for $109 million Telegraph IndiaAn auction in New York last evening established the highest total for any auction of Indian art and Mughal objects.

Turkish Treasury borrows over $1.9B through auctions Anadolu AgencyTreasury and Finance Ministry holds 3 auctions for domestic markets to issue government bonds - Anadolu Agency.

More Items From Elizabeth Taylor’s Personal Collection Head to Auction Barron'sJulien's Auctions and The House of Taylor—which oversees Elizabeth Taylor's legacy and foundation—will sell the celebrated Hollywood legend's red-carpet ...

CoreLogic: Auctions "evidence that housing conditions are stabilising" MacroBusinessCoreLogic recorded a strengthening trend in auction clearance rates over the June quarter – the last time the result was this strong was back in June 2018.

GM auctions last 7th-generation Corvette, donates proceeds to charity Automotive NewsThis month, Chevrolet will finally introduce the eighth generation of the Corvette, the first production version with the engine behind the driver. The last of the ...

The Incredible Reason These Pistols Could Fetch $1.5 Million At Auction NDTV NewsA set of two pistols is expected to fetch anywhere between $1 - 1.5 million when they are auctioned later this month. The reason for their sky-high price?

Brisbane auctions: Unique Queensland properties to draw huge auction crowd Domain NewsOne of the most unusual properties to hit the market, possibly in the whole of Queensland, is expected to draw a huge crowd to its auction in Gympie on Sunday.

Elizabeth Taylor's Oscars dress among her items heading to auction ReutersA gown worn to the 1974 Academy Awards and more than 1200 other items from the life of late actress Elizabeth Taylor will be offered for sale at an auction in ...

Tennis ace Boris Becker auctions trophies to pay off debts MoneycontrolTrophies and personal souvenirs belonging to German tennis star Boris Becker will be auctioned online from June 24 by British firm Wyles Hardy to partially ...

Mexico auctions drug lords' properties, raises $2.9 million Deutsche WelleSprawling ranches and houses with escape tunnels seized from drug lords have gone under the hammer in Mexico's capital. Some of the properties, including ...

Leòn holding its 12th online auction BusinessWorld OnlineTHE Leòn Exchange Online Auction Edition 12, under the Leonexchange platform, will be held on July 20 and 21 starting at 11 a.m. All bidding will be purely ...

Boris Becker auctions off Wimbledon trophy, jewellery and even his socks as he faces divorce bill The SunBORIS Becker is flogging memorabilia including his Wimbledon trophy, socks and jewellery as he faces a divorce bill. The three-time tennis champ is hoping the ...

US Treasury yields tick higher as investors await Fed speeches, auctions CNBCU.S. government debt yields rose Tuesday as investors awaited Fed speeches and a *fresh* batch of economic data. U.S. Markets Overview: Treasurys chart ...

CGC and EBAY Team Up to Ensure Authenticity of Collectible Auctions NewsaramaCollectible grading authority CGC has teamed with online auction site eBay to offer grading services for comic books and other collectibles sold through the site.

Walter Becker: Steely Dan Co-Founder’s Guitars, Sound Equipment Head to Auction Rolling StoneA collection of music gear belonging to Walter Becker, the late co-founder, guitarist and co-songwriter of Steely Dan, will be up for sale via Julien's Auctions ...

300 classic cars, $4 million in expected sales – TV-like auto auction coming to Lincoln Lincoln Journal StarThis won't be your typical Nebraska auto auction, with bidders shuffling from car to car inside a barn or across a bean field.

Melbourne auctions: One-bedroom East Melbourne dump soars $292,000 over reserve Domain NewsA derelict one-bedroom apartment in East Melbourne with knockout views over the city smashed its reserve by $292,000 at a hot auction on Saturday.

Sununu Auctions Copy Of His Paid Family Leave Veto At Republican Fundraiser New Hampshire Public RadioGovernor Chris Sununu rallied Republicans on July 4th by playing auctioneer and selling off memorabilia of a veto. At a time when the governor says he's.

Personalised number plates: The unique registrations being auctioned off for thousands ExpressA DVLA Personalised Registrations auction will kick off this this we to celebrate the 30th anniversary. Here's some of the plates on offer.

Elizabeth Taylor's Personal Effects Will Go to Auction Architectural DigestBut first, Elizabeth Taylor's collection of jewelry, art, and decor items from her many homes will be on view aboard a luxury cruise ship.

Neil Armstrong’s passport and rare pink sapphires for auction this week The Irish TimesSales results and forthcoming auctions.

This rare Nike 'Moon Shoe' could sell for $160000 at auction Business Insider IndiaSotheby'sA Nike "Moon Shoe" is expected to reach up to $160000.The global sneaker resale market is estimated to be worth at least $2 billion, according to.

Exiled Chinese Tycoon's Landmark Property Goes to Auction Caixin GlobalExiled Chinese Tycoon's Landmark Property Goes to Auction - Dragon's head office building near Beijing's Olympic park appraised at $1.08 billion, but no ...

Gay Art Auctions: Does the Label Help or Hurt an Artist’s Market? BloombergThree separate auctions are creating a new LGBTQ art category.

New Greek PM Calls Bond Auction 'Vote of Confidence' VOA NewsGreece launched a 7-year bond auction Tuesday, the country's third effort this year to raise money from international markets while improved borrowing rates ...

Items owned by late Steely Dan co-founder Walter Becker set for auction LouderGuitars, amps and recording gear used by Walter Becker will go under the hammer later this year.

France to hold auction and offer licences for 5G rollout ETTelecom.comPARIS: French telecoms regulator Arcep plans to roll out a high-speed 5G mobile network in the country through an auction and also directly hand out licences ...

Luzerne County August free-and-clear tax auction postponed Wilkes Barre Times-LeaderLuzerne County's main annual August free-and-clear tax auction must be postponed because of issues stemming from a cyber attack on the county earlier this ...

What Should Happen to Confederate Statues? A City Auctions One for $1.4 Million The IndependentThe debate over whether to remove Confederate monuments divided the country. The question of what to do with them next is just as complicated.

Last Motorcycle Elvis Presley Owned Up For Auction UltimateMotorcycling.comThe last motorcycle Elvis Presley owned--a 1976 Harley-Davidson FLH-1200 Electra Glide--will be put up for auction in Los Angeles in August.

State-run miller fights auction over Sh2b loan Standard DigitalStandard Chartered Bank wants to sell a prime piece of land to recover unpaid amount.

Pistols made from a 4.5 billion-year-old meteorite could fetch $1.5 million at auction Fox NewsTwo pistols made from a 4.5 billion-year-old meteorite could fetch $1.5 million when they are auctioned later this month.

Myth buster: Bid shading in first-price auctions is not all it appears DigidayConfusion remains as to what the real purpose and value of bid shading in programmatic ad buying is, and who it really benefits. Here's a myth buster.

Part of plot on auction to refund flat buyer Times of IndiaIndia News: In more trouble for the developer of Palais Royale, the 56-floor under-construction tower at Worli Naka in Mumbai, the city collector will auction a p.

A Frank Lloyd Wright Home in Kansas City Is Headed to Auction Architectural DigestMost architecture fans would love the opportunity to own a home designed by the legendary Frank Lloyd Wright. Luckily, quite a few of his creations have ...

Arcep seeks views on French 5G auction process Mobile World LiveFrench regulator Arcep outlined rules for its auction of 5G-suitable frequencies, which will be held in the Autumn ahead of commercial launches in 2020.

Average bids for solar in Argentina “mini” auction reach $57.9/MWh pv magazine InternationalOverall, 31 renewable energy projects have pre-qualified for the final phase of the auction. The outcome of the procurement exercise will be announced on July ...

Is Selling On eBay Just A Hobby Or A Real Business?

Online Auction Online Auction