Sale tax on eBay business.

stevenye0615
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 Hey, I recently started my online business on ebay. Past month have been doing well. I end up earning about $2000 on ebay. And then I got an email from Paypal tells me that I need to update my SSN. I felt weird because I alreday put my SSN on my Paypal account. And one more thing is how do I do the 1099k with Paypal? My$2000 is not my real total income. Because I have to pay off the eBay fees, Shipping costs and item wholesale costs. The money after all those decuctions is my real monthly income from eBay. Please Help!

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FusionWeb
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Do yourself a favor and google "Godaddy Bookkeeping" (which used to be called "Outright" before Godaddy bought them).

 

This is a service which can link and import all of your ebay/papyal info, to include all your paypal/ebay fees automatically. I;ve been using it for 3 years now, and it saves a ton of time at tax time.

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swinny
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Paypal sends you (and the IRS) your 1099 at the end of the year with all your sales totaled together for the year.  In this case, paypal does not care (as they shouldnt) what your other expenses and fees are.  That is up to you to keep track of and notate on your taxes to arrive at your true taxable income.  (Gross sales) - (all expenses) = (your profit) which you pay taxes on.  Hopefully you have kept track of all sales and expenses for those sales since you started?

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stevenye0615
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So I just have bring the 1099k form from Paypal and all my expenses documents to an accounting office. They will do all the job for me am I right? I've never done 1099k before. Have no idea how to do it.

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FusionWeb
Contributor
Contributor

Do yourself a favor and google "Godaddy Bookkeeping" (which used to be called "Outright" before Godaddy bought them).

 

This is a service which can link and import all of your ebay/papyal info, to include all your paypal/ebay fees automatically. I;ve been using it for 3 years now, and it saves a ton of time at tax time.

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