If You Are Selling Online? Don't Forget Taxes.
Posted 08-12-2008 at 04:30 PM by MaxB
Selling Online? Don't Forget Taxes.
By Chris Crum - Fri, 08/08/2008 - 8:55am.
The IRS will make sure.
Keeping in the spirit of watching out for the IRS, you might be interested to know that President Bush is about to sign new legislation that will require PayPal and other online payment services to report annual gross receipts to the IRS.
As Martin Vaughan at the Wall Street Journal reports, online sellers are facing new tax rules.
This includes casual eBay sellers. The IRS says that many people do not realize or choose to ignore their tax responsibilities when it comes to online selling, and they're aiming to change that.
The law won't take effect for another three years, so sellers have some time to get their acts together.
Vaughan gives the following suggestions to meet compliance:
- Report all income from online sales, even from casual selling
- If you mean to deduct expenses, act like a business
- Keep your personal and business accounts separate.
- Claim the home office deduction.
The biggest problem still, is that many casual sellers will not ever think about themselves as businesses, and therefore will not ever enter the business mindset.
These people will probably still be in the dark about their responsibilities because they probably do not read many business publications that will inform them of such news.
IncomeCentral.com
News Tags: Money, National Small Business Association, NSBA, government, financial, ASBL, American Small Business League, IRS
By Chris Crum - Fri, 08/08/2008 - 8:55am.
The IRS will make sure.
Keeping in the spirit of watching out for the IRS, you might be interested to know that President Bush is about to sign new legislation that will require PayPal and other online payment services to report annual gross receipts to the IRS.
As Martin Vaughan at the Wall Street Journal reports, online sellers are facing new tax rules.
This includes casual eBay sellers. The IRS says that many people do not realize or choose to ignore their tax responsibilities when it comes to online selling, and they're aiming to change that.
The law won't take effect for another three years, so sellers have some time to get their acts together.
Vaughan gives the following suggestions to meet compliance:
- Report all income from online sales, even from casual selling
- If you mean to deduct expenses, act like a business
- Keep your personal and business accounts separate.
- Claim the home office deduction.
The biggest problem still, is that many casual sellers will not ever think about themselves as businesses, and therefore will not ever enter the business mindset.
These people will probably still be in the dark about their responsibilities because they probably do not read many business publications that will inform them of such news.
IncomeCentral.com
News Tags: Money, National Small Business Association, NSBA, government, financial, ASBL, American Small Business League, IRS
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