DId you get that paperwork from the IRS about purchasing? over $600.00
So a friend of mine told me that if you purchase anything with pay pal and it is over $600.00 you will get a form from IRS and you will have to cut them a check.is this true? and does that mean I can't purchase from Ebay or any other audio site? say it ain't so.
recapping what's already been posted: The IRS is after income and not imposing a "Sales Tax." So keep note of what you paid for it (like stock transactions) and profit (income). If you sold it for $1000 but paid $1200; that's a $200 loss, no income tax.
As for Sales Tax that may apply depending upon State/Local, but I doubt locals can track online sales yet. In both cases the seller pays Income Tax or Sales Tax if any. (Not an advisor, just by take) 😉 |
If you regularly sell stuff (audio and other) I would suggest a business ID and checking account for all transactions. That way you could write-off all your audio subscriptions, audio conferences, travel, equipment you buy/sell as inventory plus travel, vehicle transport, heath care and other qualified expenses. See an advisor for how and what's allowable. |
Couldn't agree with @bigtwin more; hence "see an advisor..." As for audits; not very prevalent these days, but I'm not advocating poking the bear or breaking laws. Or alternatively; to paraphrase from the movie The Frim; "I don't care about triggering audits, I only care about winning them." Now back to sound and music😊 |
