| If you, like most sellers on eBay, have been under the | | | | would not interest the IRS much; but if you do it pretty |
| impression that the 'little extra cash' that you are | | | | consistently then they may start treating your sales as |
| making does not really qualify as an income, you and | | | | 'business transactions' and ask you to file a Schedule |
| the IRS may be at loggerheads. | | | | C and then make an income claim. |
| The IRS rules are pretty black and white - taxes are | | | | A number of factors are used by the IRS to decide |
| to be levied on all income, business or personal, and | | | | whether or not an eBay hobby with sales revenue |
| unfortunately that includes the money you have been | | | | should be considered a business or not; they will check |
| making at the eBay marketplace. What this basically | | | | whether you conduct your hobby in a business |
| means is that supposing you paid $10 for an old | | | | manner or not, how much time you devote to this, and |
| timepiece at a garage sale and then you sell it for say | | | | whether your livelihood depends on this income or not. |
| $20, on eBay or somewhere else, technically you have | | | | Based on your response to each of these, it will be |
| made a profit. That profit must then be reported by | | | | determined whether you are conducting a business or |
| you as income and the IRS must be given its due. If | | | | just indulging in a hobby, and according you will come |
| you sell on eBay once in a while, then maybe that | | | | under the tax net. |