Taxing Ebay profits...

[Labrocca]

http://money.cnn.com/2006/08/23/pf/taxes/online_taxes/index.htm?section=cnn_topstories


Seems the IRS wants to hit the Ebayers. I don't blame them but I wonder how many people are aware that profit on Ebay is suppose to be reported.

Oh well.

[Mayberry]

Taxing a guy for selling a $15 widget once every six months is stupid. Taxing the guys who are running a business on e-bay makes sense though. Maybe it should be something like if you sell more than 2 or 3 items a month, or more than $500 a month average. But don't tax the occasional seller.

[PittsburghAfterDark]

I want to know if I can take a capital loss for when I dumped my game collection on eBay, or a lot of it.

I want to know if I can take a tax write off for an item I bought for $50 and sold for $10-20.

[firefox]

The 'net has been a thorn in the side of state and federal tax collectors for a decade now that's for sure. Keep up the good work, Internet! :D

[Mayberry]

The 'net has been a thorn in the side of state and federal tax collectors for a decade now that's for sure. Keep up the good work, Internet!
:D Couldn't have said it better myself!

[firefox]

I'm glad we can agree! Buying from out of state kicks ASCII! :D

[Nitrus]

Kicks ASCII.. lol....

Anyway... this aint the same in the UK.. money you make on ebay is seen as the same as money made from a car boot sale.. no need to be taxed.. but then theres some debate over where to draw the line between taxing powersellers who live off ebay.. (and therefore should pay income tax), and people who just sell a few old things for the hell of it..

[firefox]

What is this "VAT" tax you guys have over there?

[Nitrus]

17.5%... which sucks...

[firefox]

That does suck. What I mean though was "what is it?" not "how much does it cost you?". Sorry if that wasn't clear, Nitrus.

[Rider]

The only problem I have with internet sales (out of state) not being taxed is that it gives them an unfair advantage over local retailers. While I do about 90% of my shopping online, I wouldn't want to see local businessmen go under because of unfair competition.

[Nitrus]

Its standard tax for anything you buy....anything and everything you buy has VAT tax added on.. apart from a few things like medicine..

[firefox]

The only problem I have with internet sales (out of state) not being taxed is that it gives them an unfair advantage over local retailers. While I do about 90% of my shopping online, I wouldn't want to see local businessmen go under because of unfair competition.


This makes sense, however there are two points to consider:

1. There's no such thing as "fair" competition, at least in that sense. If you give a better service/good at a lower cost, you get the business, if you don't, you loose out. How is this wrong? It benefits the consumer.

2. There's an easy solution to leveling the playing field. Repeal "brick-and-mortar" business sales taxes as well! Several states have done this, and they get tons of extra sales. OR and NH are two prominent examples of this.

[Rider]

Firefox-
1. Maybe "fair" competition doesn't involve government giving special consideration to certain businesses, but not their competitors.

2. I have no problem with cutting taxes on local businesses. Remember also, that businesses don't pay taxes; they collect them.

[firefox]

1. You're damn right! No special subsidies or punishments for anyone, period! We agree here 100% it seems.

2. By this do you refer to the income tax? If so, that doesn't happen if you work with me :D. You do your own filing because my comany doesn't withold as we consider you a responsible adult not some child who needs to be told what to do. Another thing to think about is the fact that the ultimate payer of business related taxes is the consumer. In order to make a profit, the producer has to pass on the taxes to the sticker price of the finished item.

That said, the best way to achieve lower prices ASAP and reduce the cost of living is to repeal all these taxes. All they do is enrich political interests and pay off debts caused by irresponsible spending in the first place. In that sense, you can think of government doing the same thing, except for different reasons. They get to waste and embezel your money, then YOU have to pay to (not) fix the problem!