Where I live you are technically supposed to collect state sales tax on anything you sell, even from a yard sale. Of course I would be surprised if anyone does. But when you sell on Ebay there is an electronic record of your sales, unlike a yard sale. You are also supposed to claim all income when you file your state and federal taxes. As far as not reaching the $20,000 mark, are you sure? Did you subtract shipping, Ebay, and PayPal fees to reach that amount? If $11,000 was your profit only, you could pass the $20,000 mark once you add all the fees and shipping costs that you paid out.
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