Legal Question in Tax Law in New Jersey

Reporting Ebay Sales on Income Tax Return

Hi, I'm new to selling on ebay, and I don't expect to make any huge profits, possibly $2,000.00 per year just to get rid of some extraneous clutter. I've heard so many different views on reporting ebay sales on your tax return, some say Ebay themselves report it so you don't have to, others say you have to go above a certain amount to report it, etc. Does anyone have the correct answer pertaining to both Federal and State tax returns? I've tried searching the knowledge base but came up zero. Thank you for your time.


Asked on 3/22/07, 3:27 am

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Reporting Ebay Sales on Income Tax Return

You must report Ebay earnings on your tax return. The IRS has a program of auditing EBay sellers. I have represented major sellers in audits by the IRS and they are very detailed audits known as "tax compliance audits." You may not have a net gain (if you sell items at a loss) but the transactions need to be reported.

I have more information about tax and business on my website www.taxesq.com

I hope this helps!

Ron Cappuccio

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Answered on 3/22/07, 9:38 am


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