Final Expense Sales

I've never had a 'real' job where I had to do income tax, so I do not know how ... I am a full time student, but I do sell things on eBay [occasionally about 2 articles a week, sometimes more, many times I go weeks / aw / month for sale / listing something], things that I ' usually buy at the mall or Buy websites and sell it on eBay for a profit.

How would I go about keeping records of my expenses and profits for tax purposes? Do I need to keep a detailed list of expenditures, sales and profits, or can I add all the money received in total [including the final bid price + shipping buyer paid] and avoid spending [initial price for the job, I paid tax on the item, shipping I paid on the point of having delivered, ebay fees, I actually spent for shipping item to send] buyer?

I just started selling last September or so ...

If you sell items on eBay from time to time, then you're probably a sole proprietor (some eBay sellers will integrate their businesses, but most eBay sellers are sole proprietorships).

Sole proprietors report their income and expenditure eBay by completing Schedule C - Profit or Loss from Business and attach it to their personal tax returns (Form 1040).

You must report your gross income (the sale price before taxes or rebates), you can deduct your business expenses to arrive at your net profit.

Business expenses that eBay sellers typically incur the following:

inventory costs *
* EBay fees
* The Paypal fee
* Shipping - shipping, packaging, etc.
* Mileage for travel to the post office, travel to find stocks (most people use the standard mileage, but you can use actual expenses instead)
utilities * Mortgage interest costs of home office - property taxes, rents, and repairs / maintenance
* Office Supplies
* Computer and software expenses (may need to be amortized over the life of the item)
* Telephone and internet (professional use only)
* Advertising
* Continuing education

There are more expenses you may incur, but are most common for sellers on eBay.

It is important to keep good records so you have all the deductions you are entitled. And yes, you should keep itemized lists of your income and deductions - the more detailed your records, the better, especially if you are still audited by the IRS.

You are only taxed on the net, but you must pay self-employment taxes on your profit in addition to your regular income tax. The self-employment tax is 15.3% and your tax rate on ordinary income can vary from 10-35%, so that these fees can add up quickly! This is another reason why you should keep good, detailed records.

To keep track of your income and expenses, I would say either Excel spreadsheets or accounting software such as Quicken Home and Small Business or QuickBooks. eBay also offers an accounting assistant (fee) that allows you to download your eBay business in your QuickBooks software (very cool).

The IRS is eBay sellers and other small business owners who may be underreporting income (or no relation at all), so good for you to be proactive and learn your responsibilities as a small business owner.

Yes, you have to keep all itemized list of expenditures, sales and profits. When income tax filing, turbo tax I would suggest and they will guide you through each point. Very friendly user. You must pay a tax of about 15% of your earnings and save all your hospitality!

Here are some things to think about.
Let's say you sell an iPod on eBay for $ 200 (winning bidder) where you purchased for $ 100. You ship the product for $ 10, but you also paid $ 3 to PayPal to use their services and $ 1 on Ebay. Your original.