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Who can verify income from making business through Ebay ?

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mistoffolees

Senior Member
IF he's doing it regularly, than yes. If it's occasionally, then that's where it gets tricky. Hence my how I phrased what I wrote.

I sell stuff on eBay occasionally. I don't consider it income.
The IRS might.


Do I have to pay tax on stuff I sell on eBay? - Business - Answer Desk - msnbc.com

Overly simplified:
"If you want to call your eBay venture a hobby, for example, you can only do this as long as you're not pursuing the hobby with the intention of making money. (One test requires that you make no profit from your hobby in two of five consecutive years.)"
 


nextwife

Senior Member
When buying and repairing stuff, several factors come to mind as to the ability to continue to profit: Availability of the stuff one is buying, and availability AND COST of GETTING the supplies and parts one needs to do the repairs. In my husband's profession, certain suppliers and services have virtually dried up in the midwest. If one wishes certain machines repaired in this area, as an example, one literally has to bring in a repair person from FL or the coast, at great expense. If the volume of work one does at that machine does not justify such an expense, one may need to outsource (which reduces return) or cease accepting projects that require use of that particular equipment. There is also a serious lack of suppliers, which makes small volume shipping OF PARTS AND SUPPLIES expensive. Certain supplies are only cost effective to ship in IF there is sufficient volume, which makes small projects less and less profitable. THAT would be an example of a rationale to cease certain hobby projects. If one has trouble accessing the "stuff", at the right price, that one has been buying to repair, they could readilly justify ceasing pursuit of such projects. Market value of supplies and materials is something a judge cannot control or order. A hobby second job may be very dependent on market value to be profitable.

Think TV and radio repair as an example. Once profitable, now virtually defunct. Or even selling used dvds! The demand for certain items/products may have a limited shelf life.
 
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meanyjack

Member
The IRS might.
Good. Freaking. Lord. :rolleyes:

Again, look at the words I'm using. The OP has not stated that the ex is doing this regularly and/or as a business or an "eBay store". If he is, then I can see her issue. But, even then it's, not cut-and-dry.

But, if it's an occasional thing -- like many people on eBay do -- look to unload things for a "few extra bucks." And usually at a loss (esp. after you've paid eBay & PayPal their fees). If I'm selling a bunch of DVD's or CD's on eBay (which I do from time to time), it's not income for several reasons. I've sold them at a loss. I've sold boxes of baby clothes. Again -- at a loss. It's no different than having a physical "garage sale", IMO.

But, the IRS is not relevant here because that wasn't the OP's question. When it comes to calculating as income for CS purposes, it (usually) has to be monies coming in regularly. Not the occasional eBay transaction.
 

mistoffolees

Senior Member
Good. Freaking. Lord. :rolleyes:

Again, look at the words I'm using. The OP has not stated that the ex is doing this regularly and/or as a business or an "eBay store". If he is, then I can see her issue. But, even then it's, not cut-and-dry.

But, if it's an occasional thing -- like many people on eBay do -- look to unload things for a "few extra bucks." And usually at a loss (esp. after you've paid eBay & PayPal their fees). If I'm selling a bunch of DVD's or CD's on eBay (which I do from time to time), it's not income for several reasons. I've sold them at a loss. I've sold boxes of baby clothes. Again -- at a loss. It's no different than having a physical "garage sale", IMO.

But, the IRS is not relevant here because that wasn't the OP's question. When it comes to calculating as income for CS purposes, it (usually) has to be monies coming in regularly. Not the occasional eBay transaction.
Where did she say it was infrequent or irregular? What she actually said was: "My husband buys things on ebay, fix or improve them and sell for more." which grammatically suggests an ongoing situation and not a one-time deal.

Since we don't know whether it's a regular situation or not, nor do we know whether it's significant enough for the IRS to get involved, the only correct answer is the one I gave - that the IRS MIGHT care.

And if it's income per IRS standards, then it almost certainly could be considered in setting child support.
 

nextwife

Senior Member
Before spinning a lot of wheels, the poster needs to figure out what sort of actual monthly NET profit, after initial purchase cost and supplies, he may be recieving, Then figure what income tax, state and fed, might be due plus Ebay and Paypal fees would be owed on this income. And their own potential half liability for taxes if they filed jointly. Then figure out how much additional CS that translated into.

Now decide if it is sufficient to be worth the cost of pursuing. Cost benefit analysis - I work in collections and will not pursue any costly collection effort if the potential return is not warranted, or especially if it costs more to collect than we'd get . . .
 
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