You are here:
- Home
- Business
- Corporate Law
- Tax Law (Questions About Taxes)
- Ebay and Taxes
Tax Law (Questions About Taxes)/Ebay and Taxes
Advertisement
Question
Hi, I am hoping you can help me with some tax questions. I recently just started selling on ebay. I am using a dropshipping company that I order my products from. When I sell something on ebay, I put the order in with the company and they ship it off to the customer. Anyway, what I am wondering, is how does this work out when it comes time to file taxes? Would I be filing as a business? And would I be making deductions for the amount I pay the dropshipping company and ebay and paypal fees? The payments I receive when I sell on ebay are alot more than what I actually make, after putting in the orders with the dropshipping company. Anyway if you can give me some advice on how to go about filing taxes for this, I would really appreciate it!
Jennifer
Jennifer,
Thanks for your question.
You will file a Schedule C for your business. Show the gross sales price as your revenues and deduct any expenses such as what you pay the company and your PayPal fees.
You will also need to file Schedule SE if your profit is $400 or more.
Hope this helps.
John Stancil, CPA
Related Articles
- Have eBay Help You with Your Taxes - eBay - eBay Culture and Lifestyle
- How does eBay affect my taxes? - eBay - Frequently Asked Questions about eBay
- eBay Rules Survival Guide - eBay - eBay for Beginners
- What does it cost to trade on eBay? Is there a catch? - eBay - Frequently Asked Questions about eBay
- What's your toughest business problem as an eBay seller? - eBay - Your Feedback
Answers by Expert:
- Rod Dorothy
- Helen P. O`Planick, EA
- Carole Dunton
- Randall Brody, EA, MBA
- Mike Wellman
- Richard Fritzler
- Vanessa D. Powell, CPA
- MEdusa
- Glenn D Schnabel
- IJ Zemelman, EA MBA
- John L. Tidwell
- John Stancil, CPA
- Neil Johnson (The Tax DudeŽ)
- Adam Shay
- Edward L Parsons CPA
- Bruce W. Tyler, EA
- Chea Romine, CPA
- ABRAHAM ITANI, CPA
- WILLIAM D MCCONNAUGHY, CPA
- Jay Allen Finn, CPA
- Mark Trazo, CPA Candidate
- Randall Klein, MBA, EA
John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 35 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com. Prepare and file your own taxes at www.1040stancilcpa.com
Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CGMA, and CFM. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 30 years and have taught accounting and tax at the college level for over 30 years.
Organizations
AICPA, FICPA, IMA, NATP
Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly.
Education/Credentials
DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
©2012 About.com, a part of The New York Times Company. All rights reserved.