teficsa.com

By Tim Knox

Q: I made extra money selling things on eBay last year. These were items I picked up at yardsales mostly. My husband says I am responsible for paying income tax on the money I made, but I disagree. This is just my hobby, not a business. What do you think?

— Gladys A.

A: With so many people selling on eBay these days this is a question I get all the time. To many eBay sellers the thought of running an actual business is about as appealing as getting negative feedback, so they go out of their way to convince themselves that selling on eBay is really “just a hobby” and therefore, should not be susceptible to income tax laws.

While you might think selling on eBay is just a hobby and the extra money you’re making is not reportable as income, depending on the circumstances, the IRS just might disagree with you.

The IRS rules are clear: you must pay taxes on all personal and business income and that includes money you make selling on eBay.

In its most basic sense, the IRS rules mean that if you buy a vase at a garage sale for $10 and sell it on eBay (or elsewhere) for $20 you made a $10 profit and therefore must report it as income and pay Uncle Sam his fair share.

In reality, if you are a casual seller who only sells a few items on eBay every now and then it’s doubtful the IRS is going to lose much sleep over the few bucks you make.

However, if you consistently sell on eBay the IRS may deem your activities to be business oriented and you will be required to file a Schedule C and claim the income.

The IRS uses a number of factors to determine if a hobby is really a business. These factors include:

1. Do you carry on the activity in a business-like manner?

If you conduct your eBay activities in a business-like manner, i.e. you keep business records, track profit and loss, keep a separate checking account, etc. then whether you think so or not, your hobby is really a business.

2. Do you spend considerable time working on your hobby?

If you put considerable time and effort into your eBay sales, the IRS may contend that you do so for profit and not fun. It seems the folks at the IRS don’t believe in doing things strictly for pleasure. My guess is, neither do you. If you weren’t making money selling on eBay I doubt you’d bother getting up at 4 a.m. to hit all those yardsales.

Then again, maybe you would… :o)

3. If you depend on income from your eBay activities for your livelihood?

If so, it’s a business, not a hobby.

There are a number of other factors the IRS uses to determine if a hobby is really a business, but that covers the basics.

You can learn more at the IRS website at www.irs.gov.

What’s eBay’s take on all this?

eBay is vehemently opposed to anything tax related (especially the forced collection of sales tax, which is a whole ‘nother issue). It’s understandable that eBay is not a fan of the IRS since trying to enforce tax rules on buyers and sellers would undoubtedly be detrimental to the way eBay does business.

eBay does not does not issue 1099 tax forms to sellers, nor does it report seller’s sales figures to the IRS. eBay considers itself a faciliator, i.e. they provide a marketplace in which buyers and sellers come together to do business.

However, since eBay is not directly involved in the transactions that take place between buyers and sellers, it would be impossible for eBay to report sales figures. Furthermore, eBay does not track if a seller actually gets paid by the buyer, so they have no idea how much money actually changes hands, making it impossible for eBay to issue accurate 1099s to sellers.

On the bright side, if you do sell on eBay as a business you can deduct a number of business expenses, including the cost of inventory, listing fees, shipping, envelopes, packing materials, etc. You might also be able to deduct things like the purchase of a computer for business use, office space (even if it’s a home office), office supplies, and more.

I’m not accountant (nor do I play one on TV), so please do not take any of this as tax advice or legal opinion. Talk to your accountant if there’s any doubt as to whether you should or should not be paying taxes on your eBay earnings.

Here’s to your success!

Tim Knox

About the Author: Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox. Tim serves as the president and CEO of three successful technology companies and is the founder of DropshipWholesale.net, an online organization dedicated to the success of online and eBay entrepreneurs.

Related Links: prosperityandprofits.com smallbusinessqa.com dropshipwholesale.net

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Why it is Essential to Find Experienced App Developers

by

Raj Srivastav

With extensive online tutorials, app development engines and open source culture emphasizing ease of use in app development, it is now possible for literally anyone, with basic computer skills, to begin dabbling with making an app for Android or the iPhone. Unlike the intimidating, or geeky tag that programming had once garnered, apps and software are now considered cool and mainstream.

However, the mad rush to beat the competition and roll out app after app rapidly has also led to inferior, glitch-ridden apps being uploaded to app marketplaces. Not only do they offer error-prone functionality, but can also compromise data security.

Software Developers India – SDI explains in great detail why you should only hire experienced app developers for your app needs.

Appreciation for design rules

Younger app developers may follow the Mark Zuckerberg mantra of \”Move Fast and Break Things\” but designing the visual experience of an app requires in-depth thinking of all aspects of the app. Even the logo, the first point of contact for the user needs to look great across all platforms and devices. Unless it is intended for industrial use, everyone from a supermodel to an accountant might use the app, and it must appeal to everyone.

Software Support

With the experience and insight into how software and coding interacts with hardware, experienced app developers can rapidly address glitches, bugs and other issues. They can also tap into their own network to raise awareness about malfunctioning apps. Newbie developers may not have the same level of social support.

Flexible Solutions

Fluency with software and coding also lets experienced developers rapidly improvise to deal with unexpected app glitches. Having dealt with clients on a regular basis, they have developed a systematic method of escalating complaints so that they are resolved rapidly.

Experienced developers might use their inventory of tech solutions to offer a standby solution.

More Willing to Experiment

While one would automatically assume that newbie designers would be radical and unconventional, it is often seen that experienced developers are highly invested in breaking boundaries, and use their time in the industry to learn from mistakes to make better and better apps. An app developer with a formidable body of work is still only as good as the next version of his app in the marketplace. They are also driven by the booming competition in the sector.

SDI has been partnering with clients to make apps for Windows Phone OS, Android, and iOS to solve business needs and challenges. The company has developed a reputation for path-breaking innovations in the app development space. By closely monitoring modern trends, SDI has made several cutting-edge apps that are now essentials on their client s devices.

To avail best-in-class app development services for your business, visit SDI or contact us on 408 802 2885. You can also write to us at team@sdi.la .

The author can be reached at

softwaredevelopersindia.com

, a US-based

app development company

known for value-pricing and development experience. Direct your app development requirements/ queries etc. to team@sdi.la and hear back from us soon.

Article Source:

ArticleRich.com

Certified Public Accountants Are Helping During IRS Shut Down

by

Holly Petherbridge

During this troubled time of government shut downs, your Certified Public Accountant will answer your call. With less than 10% of its workforce on the job, the IRS is driven to not let the political problem become a tax problem. Just because the phones may not be answered, it doesn\’t mean that taxes have gone away. With a Shutdown Contingency Plan in hand, the IRS created a plan to keep some areas of the program running during this troubled time.

Activities which were previously funded, those needed to safeguard human life or protect government property or those people needed to properly shut down the IRS are permitted to work. The IRS website is still up for self-guided information, but there is no one to answer your call. There is a pre-recorded message with brief instructions for specific services. Any individual with tax questions should at this time turn to their CPA for answers. These professionals are more than financial advisers but are also well-abreast on current IRS information and updates.

The employees who are allowed to work at the IRS during this shut down are those with the following responsibilities:

*Provide services to the Social Security Administration

*Design and print tax forms for next year

*Complete and test processing programs for next year

*Process tax returns which come with a payment

*Process tax returns filed electronically

*Maintain computer systems for the IRS

*Process cases which involve bankruptcy, liens, asset seizures and imminent expiration of a collection statute

*Building maintenance

*Maintain undercover criminal investigations and any law enforcement activities.

One message which the IRS wants to make perfectly clear is that filing and paying taxes should both be done as normal. Just because most of the employees are not on the job, it doesn\’t mean that you don\’t process your taxes.

The October 15th deadline for those who were granted an extension remains in force. File your Form 1040 on time even if the IRS is still shut down. It will prevent any future tax problems. Call your Certified Public Accountant if you need any assistance making the deadline.

Check out the service tools on the website. You can find your Personal Identification Number through the automated system as well as get answers to other tax related questions. You can access general information covering the new healthcare law, the impact on families, employers and individuals. It\’s an automated system, if you miss your option return to the main menu and try again.

Some people have no patience with automated services. Others have additional questions which are not answered in the general response. This is a time when having a financial adviser in your corner will help to prevent any IRS setbacks. The new tax year is coming fast. The IRS continues to prepare necessary forms which support the expectation that all tax payers continue to perform their IRS duties as normal. When the IRS is back up and running with 100% employee activity, you don\’t want your finances under their investigative eye.

CDRCPA Inc. Certified Public Accountants

is conveniently located in Murrieta, California, but our entire staff of accountants, CPA\’s and

personal or business tax service professionals

frequently visit our client\’s at their location. So, if you can\’t come to us, we\’ll certainly come to you.

Article Source:

ArticleRich.com