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Buying and Selling on eBay: Tips, Tricks, Problems & Questions

Discussion in 'Classic Menswear' started by HansderHund, Jul 27, 2012.

  1. stevent

    stevent Well-Known Member

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    Thanks yeah just never really done this before so want to be sure.
     
  2. txwoodworker

    txwoodworker Well-Known Member

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    Burden of proof is never on the IRS if you are audited. My company has been through 2 sales tax audits, anything you can't prove automatically goes against you, the auditor has no discretion.
    There's an income level where you have to start doing quarterly estimated taxes. Like Spoo, my wife does all the admin, so I can't say what that is.
     
    1 person likes this.
  3. Brianpore

    Brianpore Well-Known Member

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  4. capnwes

    capnwes Well-Known Member

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  5. staxringold

    staxringold Well-Known Member

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    I would strongly suggest adding themeerkat to your banlist. I made some mistakes along the way (I was mass-shipping and accidentally printed a label for it before he paid) but Holy Christ. He didn't reply to multiple invoices, or multiple messages. I opened a Second Chance Offer and he finally, slowly starts replying (not really moving the process along at all) but continues to not pay. He only finally just paid after the Second Chance buyer already paid and I shipped, despite my telling him the item had sold and was no longer available. I have no idea how he got 1000+ feedback, it was terrible.
     
  6. Brianpore

    Brianpore Well-Known Member

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  7. My Main Man

    My Main Man Well-Known Member

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    I usually just open an unpaid item case after 5 days or so. They either pay or else it closes and then I relist it. I've made more money each time I've relisted vs doing a second chance offer. Plus, you get your fees back and don't have to worry about the original auction winner paying after you've already sold the item to someone else.
     
  8. Fueco

    Fueco Well-Known Member

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    The how much are you taxed on? Is it automatically assumed that you got the item for free?
     
  9. capnwes

    capnwes Well-Known Member

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    Yes, if you can prove no expense, in their eyes your expense was $0
     
  10. Fueco

    Fueco Well-Known Member

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    The thrift gave me stuff? No wonder the IRS has such an evil reputation. Forget healthcare, let's reform the effing irs...
     
  11. capnwes

    capnwes Well-Known Member

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    ^thats why we keep records of spending. Same for any business.
     
  12. Lirum

    Lirum Well-Known Member

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    consumption tax for 2016
     
    Last edited: Nov 8, 2013
  13. Fueco

    Fueco Well-Known Member

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    Records is one thing, but receipts? Actual physical pieces of paper?

    Edit: Also, what about non-itemized receipts from thrift stores? Do you write the item name on it? Leave it be and claim the whole thing as a business expense?
     
    Last edited: Nov 8, 2013
  14. hooker4186

    hooker4186 Well-Known Member

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    Ye

    Yeah I've been wondering this too.
     
    Last edited: Nov 8, 2013
  15. Snoogz

    Snoogz Well-Known Member

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    I've kept receipts for everything this year, not sure if I'll need them but they are nice to have just in case.

    I separate them in monthly envelopes, and then bundle at years end and shove in a shoe box.
    Its pretty easy once you get the hang of it.

    I also have split receipts, tailor receipt for fixing a few linings on high end jackets, but also doing some personal stuff.

    I split the expense into personal / business expense. But again these receipts are not itemized.

    Is itemization on receipts required?
    I'd assume not, because non profit thrift stores are sometimes giving non-itemized receipts.

    If that is good enough for them, it should be good enough for us.
     
  16. SeaJen

    SeaJen Well-Known Member

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    I suggest that if you are pursuing this as a business that you do what other small businesses do, consult an accountant. Not least because they know what other awesome things you can write off as business expenses (and how they must be substantiated) such as

    [​IMG]
     
    Last edited: Nov 8, 2013
    1 person likes this.
  17. Snoogz

    Snoogz Well-Known Member

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    I need an accountant or bookkeeper, but don't want to pay the fees for regular maintenance. I want to do my own bookkeeping throughout the year, and possibly have someone do my annual taxes.
     
  18. SeaJen

    SeaJen Well-Known Member

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    That doesnt sound like an unreasonable or unusual arrangement.
     
  19. DanM

    DanM Well-Known Member

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    I'm not offering my professional advice, as my specialty is a different area of tax accounting, but I'd like to summarize some of the best advice regarding bookkeeping/taxes.

    Track all of your expenses. Keep receipts, not just for your thrift purchases, but for meals you buy on thrifting trips, any expenses related to shipping, any investments made into your photography setup, etc.

    Either track your specific mileage, or have a set of standard thrift routes and keep track of how often you travel them. Mileage deductions are your friend.

    If you have devoted home office space used with this business, deductions are available for that too. You could even go so far as to track how much electricity is used in that room and deduct that portion of your utilities.

    I highly recommend keeping a separate bank account for business use. This should be right up there with tracking your expenses, an invaluable tool.

    If you expect to owe tax of $1000 or more, you generally have to pay quarterly income tax. Straight from the IRS site for that one. Your states and localities will have different rules.
     
  20. jebarne

    jebarne Well-Known Member

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    I believe that once you have to pay on April 15, you are told to start filing quarterly estimated taxes.

    I have written a check to uncle sam every year for the last 15 or so, and My accountant pings me every quarter about estimated quarterly taxes. He estimates them when he gives me my return and divides it up into payments.

    If you don't file quarterly tax, there is no penalty if you've adjusted deductions to account for it.

    In my case, its rental income that creates my issue, since I'm not paying on the rents received, but on net at the end of the year, factoring in depreciation, expenses et al.

    for you guys who are doing serious coin, you should probably do it quarterly. Lets say your on track to net $60K this year. depending on your starting point and where you live, the marginal tax rate could easily reach 60%, or $36K between state, federal and municipal. Unless you've got a load sitting in your paypal account, you're probably better off a % of your weekly wins directly into an account earmarked for taxes.

    You can avoid some of that with passive losses, funding a retirement account (I think the limit for a SEP is 51K or 25% of income this year).

    At any rate, if you don't pay your taxes, you'll eventually be caught.

    I think the audit window is 7 years right now, with the first 3 requiring the taxpayer to prove all deductions and income with paper, and the next 4 requiring the IRS to prove. (I'm probably 10 years out of date so if this has changed, sorry.)

    But here's the key, if they find evasion (i.e. TAX FRAUD) in the first 3 years, they can go back as far as they want, can get records and a whole crapload of recourse they don't have if its a simple mistake.
     

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