eBay Tax

eBay taxes include capital gains taxes, income taxes, and sales taxes.

When you sell personal property on eBay, it is subject to capital gains tax if you sell it at a profit. However, losses on personal items are not tax deductible.

This means that if you buy a guitar for $200 and sell it for $300, you must pay capital gains taxes on the $100 you made in profit. However, if you sell the guitar for $150, you would not get to take a write-off on the $50 loss.

If you are selling items on eBay for more than you paid for them, you must pay income taxes on your profits. How you pay these eBay taxes will differ depending upon whether you are an individual, an LLC, or a corporation.

Depending upon the state that you live in and the state which you ship product to, you may be responsible for paying sales tax on the items you sell on eBay. Check the laws of your state to be certain.

The good news is that if you report income on your eBay business, you can also deduct reasonable business expenses.