Tax Questions?

Full Member
iamdog
Posts: 35
Joined: 02 Feb 10
Karma: 
22 Feb 10 02:45:11 am
Hello everyone,

I found a wholesaler that I want to use and I need help with the tax.
If you sell on eBay how does the tax situation work?
Do only certain states need it? BTW I live in IL

If I decide not to sell on ebay and sell on my own website in like bulk lots, do I need tax then?

Finally if I do need tax how doI give it to the government?

THANKS!!!!!!!

Full Member
planes
Posts: 839
Joined: 19 Jul 07
Karma: 
22 Feb 10 05:48:21 am
Hello everyone,

I found a wholesaler that I want to use and I need help with the tax.
If you sell on eBay how does the tax situation work?
Do only certain states need it? BTW I live in IL

If I decide not to sell on ebay and sell on my own website in like bulk lots, do I need tax then?

Finally if I do need tax how doI give it to the government?

THANKS!!!!!!!



Most states do not have sales tax for internet sales unless the item is shipped within your state. If I am correct, you are not responsible to collect sales tax for any other state then your own when shipped within the state.

As an aside, some of the big companies which have brick and mortar stores, get away with not collecting sales tax by setting up a completely different corporation for online sales and therefore have no in state presence.

Full Member
iamdog
Posts: 35
Joined: 02 Feb 10
Karma: 
22 Feb 10 01:15:06 pm
Okay thanks!
Also how would I collect tax for my state?
Would I need to file a tax return also?

Full Member
dwmgoods35
Posts: 310
Joined: 19 Feb 09
Karma: 
22 Feb 10 04:34:23 pm
Just an update on this...I was told by the state that it does not matter if you collect sales tax from your state or not if your making an income with online sales you are still required to claim your income to the IRS regardless. If your making either a profit or coming in even your still required to file this on your taxes. I actually did my taxes already and had to pay a few hundred bucks to the IRS.

Please do not avoid this because they will research this if you don't.

Full Member
iamdog
Posts: 35
Joined: 02 Feb 10
Karma: 
23 Feb 10 03:22:13 am
Okay still a little confused...

Just to clear everything up. I live in IL and if I sold to someone in NY I wouldnt need to collect sales tax. However I still need to report my earnings and have tax on my profits.

Correct right?

Full Member
dwmgoods35
Posts: 310
Joined: 19 Feb 09
Karma: 
23 Feb 10 04:30:20 am
That is Correct iamdog, for example I live in Virginia and part of this state law you are liable to collect only sales tax with sales made in the state. Federal laws still require regardless to file any income earned from Internet sales. You will need to know your Gross Sales for the year I believe.

If you really want to invest for long term and make sure your all in order I would invest in Quickbooks Pro 2010. Basically it does the work for you and keeps you organized so you dont get hit with surprises.

Full Member
iamdog
Posts: 35
Joined: 02 Feb 10
Karma: 
23 Feb 10 02:07:58 pm
Okay THANK YOU very much!!!

Wait! Want Some FREE Supplier Details?

Discover four of the most profitable niches on eBay and get details for the best suppliers for these niches. Enter your details below and we will send them instantly.

Thanks! Please check your email inbox.

Your list of profitable markets and supplier details are on their way to your email inbox.
Be sure to add support@salehoo.com to your safelist to ensure we can deliver the free suppliers details to you.

If you haven't received an email from us in 5 minutes, please check your spam folder or email us at support@salehoo.com.