Power Sellers Unite

elgato · Joined: 24 Feb 2005 Posts: 16923 Location: Texas

OTTAWA — The federal government says online income is taxable and has warned Internet entrepreneurs who use eBay and other web-based sales venues that they must pay up or face prosecution.

“Taxpayers should know that the tax laws that apply to traditional commerce apply in the same way to electronic commerce, like eBay selling,” Revenue Minister Jean-Pierre Blackburn said in a statement Thursday.

“I strongly encourage eBay sellers and, for that matter, any taxpayer who has not already done so, to correct their tax affairs as soon as possible to avoid penalties or prosecution.”

The tax agency says it will begin auditing eBay sellers at summer’s end after receiving detailed information from the online sales outlet.

In a September 2007 decision, the Federal Court of Canada ordered eBay Canada Inc. to provide the Canada Revenue Agency with the names of its high-volume sellers, their contact information and their sales records.

Noting that its records are kept outside the country by its parent company, eBay appealed the decision. The appeal was rejected in April.

The tax man can now use personal information to determine if the sellers have duly reported their online income.
more.. link to news article

ASLANstore · Joined: 20 Apr 2006 Posts: 704 Location: MidWest

this might not be a popular assertion, but...

do the right thing - pay your taxes!
You're just hurting yourself in the long run anyway

DaLizardsLair · Joined: 15 Feb 2009 Posts: 4782

eBay will be reporting the sales of its sellers, to the IRS as well. Sellers and the IRS will receive copies of Form-1099, which will state the dollar amount of sales on eBay for the year.

For those who want to argue that there are no internet taxes allowed by the Constitution, this is not an internet tax. Rather it falls under the heading of Income Taxes. And income is taxable regardless of where it comes from.

ASLANstore · Joined: 20 Apr 2006 Posts: 704 Location: MidWest

DaLizardsLair wrote (View Post): › docWrite("quote")Rather it falls under the heading of Income Taxes

...and that is exactly what I've filed since my first year in business doing online sales. True, the tax preparer intimates that I am in the minority who actually do so, but even if I stand alone in doing so (in my region anyway) it is what it is.

If I report a loss or a surplus, real money was made, so real money is being deducted from me for State and Fed taxes.... as well as Social Security (the "security" of which is open for debate).

dhearndon · Joined: 04 Jan 2007 Posts: 296

Isn't this news from Canada? Does it pertain to the USA?

johndonahoe · Joined: 24 Aug 2008 Posts: 11

As if people aren't suffering in this economy. Ebay takes 18% off of each sale and forces sellers to use Paypal, which also nickels and dimes money away. And some idiots on these forums have the nerve to say this is a good thing!?! How many people in this country are already on the poverty line. I think most of us have enough expense burdens thank you. We don't need ivy league school elitist, rich, government pricks who run deficits to force us to solve THEIR mistakes by taxing the little man. Why else would they be implementing this policy now?

Even more sickening is that this is probably still not enough. They will come up with more reasons to tax the populance until we are all poor.

johndonahoe · Joined: 24 Aug 2008 Posts: 11

To all the supporters

mojavelyn · Posted: Sat Aug 01, 2009 12:40 am Post subject:

Hi Marty how ya doing?

Glad you're still around.

Income is income and is taxable. And if your overhead is too high, then adjust your business model.

johndonahoe · Joined: 24 Aug 2008 Posts: 11

adafadfadfdf

johndonahoe · Joined: 24 Aug 2008 Posts: 11

Income is income and is taxable.

What does that even really mean anyway. Who wrote this rule? You. I'm glad your taking such an authoritative stance on this issue. It makes it sound like there is no room for debate. I'm glad you like living in an Orwellian society. Oppression be dammed. Just adapt or die. Forget challenging authority or a shakey policy because you have no real power or say in such things.

DaLizardsLair · Joined: 15 Feb 2009 Posts: 4782

Quote: › docWrite("quote")Ebay takes 18% off of each sale and forces sellers to use Paypal, which also nickels and dimes money away.

As opposed to having a B&M store in any major shopping mall, where you'll pay upwards of 8 thousand dollars per month PLUS 8.5% of your GROSS sales as rent. If you have a Merchant Account to accept credit cards, then add another 2.9% plus all the monthly fees.

This on top of utilities, payroll, advertising and last but not least taxes galore.

And you think eBay's fees are bad?

Quote: › docWrite("quote")Income is income and is taxable.

What does that even really mean anyway. Who wrote this rule?

In the US, the IRS wrote that rule. I'm not sure about Canada.

As to the "good" or "bad", that is another discussion. If you keep a good set of books, you can quite often get your profit down below the minimum taxable limit, whereby, you owe NO taxes.

Unfortunately, the same isn't true for FICA (or the self-employment tax (Form-1040 SE) for those in the know). That kicks in at $400 in profit and self employed people have to pay twice what employees pay.

johndonahoe · Joined: 24 Aug 2008 Posts: 11

Yeah, but with

diesel_parts · Joined: 23 Jul 2006 Posts: 723

I don't think paying income tax on profits from internet sales has ever been an issue. The tax issue is sales tax on interstate commerce sales which is prohibited in article one of the US constitution. The supreme court has already ruled on that. Many politicians are doing an end around run to try to collect these taxes anyway.

That is the issue not income tax which we all owe and cheerfully pay TIC.

cohibastore.com · Joined: 14 Sep 2006 Posts: 4764

johndonahoe might i suggest that voter is at fault.

while i agree with aslan that due taxes should be paid, is it not the voter who continually re-elects the people that keep spending money, adding taxes and new programs that are the root cause?

CS

DaLizardsLair · Joined: 15 Feb 2009 Posts: 4782

johndonahoe wrote (View Post): › docWrite("quote")Yeah, but with your logic it's like saying Americans shouldn't complain about gas price hikes because Europeans has had higher prices longer. How many people are actually going to agree to higher prices even after they heard that argument? Answer: very few.

Not even close.

I'm saying that those of us, who have had businesses in the "real" world know just how much more you have to pay, just to be able to have a business, as opposed to the internet.

But at the same time, we know how to make the "system" work for us, in regards to deductables and write-offs.

As for your gas price comparison, if the "powers that be", whether they be state or federal, came forward and offered to resurface the roads to eliminate potholes, and would do so with a minimum of disruption, by doing the work at night, in exchange for an 25¢ per gallon increase in the gas tax, I do believe that most people would agree that it was a worthwhile trade-off.

As for Europeans paying more for gas, that is primarily taxes. That is how they pay for their national health care, among other things.

How much you drive is something you DO have control over. When gas prices were reaching $4 per gallon and beyond, I never spent more than $10 at a time for gas, and it would last me at least 2 weeks. And my car is considered to be a gas hog (1994 Ford Crown Victoria LX)...I simply don't drive that much.

I wonder...

If the government came out and offered everyone National Healthcare, similar to what members of Congress get (remember, Obama promised as much), in exchange for a $2 per gallon increase in the gas tax, do you think that the majority of Americans would go for it, knowing that they have some control over how much driving they do?

I think they would.

So while your comparison didn't fit in the vein of the argument, it did lead towards another possible thread. Maybe you should go start that one.