Home Add to Favorite Contact Submit  
             29 May, 2020
 

    
Category:  Articles » Finances » Taxes

 

As a Bookseller Don't Risk Being Accused of Cheating on Your Taxes

Popularity:
         Views: 1071
2006-10-15 02:42:25     
Article by Michael Mould

Many online booksellers are of the opinion that their selling of books online falls under the heading of a hobby and they are not obligated to report the federal or state income from their bookselling endeavors, and while I am not a tax consultant or a tax lawyer, I believe many of them are grossly mistaken in their interpretation.

If you are selling books regularly through one of the online marketplaces and realizing a real profit from these sales, you are operating a business and you are required to pay an income tax on your profits. If you are selling your own collection of books, you may still be obligated to pay an income tax on the sales if what you are selling them for exceeds what you paid for them or if you depreciated them previously.

I have read several places recently that the IRS has been looking into the online sellers of all kinds of products with a particularly keen interest in sellers having high volumes of sales. It is only a matter of time before they require the online marketplaces to file paperwork that reports all of the proceeds paid to a seller and the burden to show how much of the proceeds is profit will be left on the seller when he/she files their tax return. This is the norm for business, so you shouldn't really be surprised when it becomes a reality for online booksellers.

For this reason, as well as to be in compliance with current tax laws, it is essential that you keep good records of your sales, expenses, business use of your vehicle/home, and all other relevant tax information. It sure is a lot easier to keep track of it throughout the year than to wait until the end of the year to bring it all together. You don't even have to keep them well organized as long as you enter the data as it becomes available, i.e., when you sell your books, record the sales, when you buy books, record the cost of those books, when you pay postage, record what you paid, etc., you can then put everything in one big folder if you are inclined to mix everything up, or sort the sales and expenses according to categories you can later review. Even if you have a medium sized online bookselling business, you will find yourself going through thousands of sales papers, hundreds of postal receipts, dozens of marketplace statements, and perhaps a few hundred receipts for the books that you bought to sell - if you wait until the end of the year. It is much easier to enter them as you go in software designed to make life easier for you. After you have done all these things, you still need to take deductions for the business use of your personal car and if you didn't keep a log, it is too late, this deduction which could amount to hundreds of dollars, can only be taken if you have a written record of the miles your car was used in your business.

The best part of income taxes is the more you have to pay, the more profit you made throughout the year. It is illegal to evade paying your taxes, but you do have the right to avoid paying any more than you are required to pay. Keep good records and avoid paying excess taxes unnecessarily.

Print article      Bookmark this page
Related Articles 
How Much Will My Tax Deduction Be if I Donate My Car? (Popularity: ): Often one of the first questions a person has when deciding what to do with a car they no longer want is “What will my tax deduction be if I donate it to charity?” When you donate car to charity the amount you can claim on your itemized federal tax return depends on two things; the fair market value of your car and what the charity does with the car.The ...
The Real Deal on Alliance Bernstein 529 Plans (Popularity: ): If you ever once dreamed of become an architect, a doctor, a nurse, an engineer, a lawyer, or many other things, you would probably know that a college degree or better is needed to make these dreams possible. All over the world and all over America, many families try making dreams into reality by sending family members to college. This is not so easy however, especially in the United States. ...
Getting a Copy of Your Past Tax Returns (Popularity: ): Tax returns are part of our "important documents" when it comes to finances. If you want to get a mortgage or loan, you might be required to show copies of them. So, what do you do if you can't find the returns for a particular year? Well, there is no need to stress.The first thing to understand is the IRS is your friend in this regard. For all the discussion ...
Avoiding Disaster - Data Loss At Tax Time (Popularity: ): Brisbane, QLD, 3rd April 2007 - Taxpayers and tax professionals are increasingly preparing and filing tax returns online, creating a reliance on digital data that, if lost through malfunction or error, could spell disaster. Last year, 90 per cent of Australian taxpayers lodged returns electronically, and the Tax Commissioner is aiming to boost that number to 95 per cent of taxpayers in 2007/8. As insurance against this risk, CBL Data ...
Purchase Your Car With Unsecured Car Loans And Fair Sum Of Money (Popularity: ): Buying a car, particularly a swanky one needs a hefty amount of money. For most people in UK it becomes difficult, sometimes almost impossible to purchase a car in cash. That is why many car purchasers depend on car financers and car dealers to buy the car of their choice. But research reveals that these people end up paying a large sum of extra money by financing their car through ...


Related Business 
Solve Your IRS Tax Problems Today (Popularity: ): Facing the IRS when you have back taxes you can’t afford and you don’t know how to get the tax relief you desperately need is not a fun place to be. If you’ve received an IRS collection or audit notice, you don’t have to tackle the situation on your own. You have a right to be represented by an expert tax attorney when seeking tax relief from back taxes and ...
Pepe State Tax Consulting (Popularity: ): Florida state sales and use taxes, intangible taxes, documentary stamp taxes, and telecommunication taxes.
Signs Of A Cheater (Popularity: ): Discover cheating and infidelity before it's too late. Resource site about cheating and infidelity. Very active forum. As you know, I’ve been cheated on. What might surprise you is that I was also a habitual cheater when I was younger.
The-Facts (Falsely Accused Citizens In Today's Society) (Popularity: ): Provide educational material and support for those who have been falsely accused.
Society for Risk Analysis (Popularity: ): The Society for Risk Analysis (SRA) provides an open forum for all those who are interested in risk analysis. Risk analysis is broadly defined to include risk assessment, risk characterization, risk communication, risk management, and policy relating to risk. Our interests include risks to human health and the environment, both built and natural.
The Counselling Room (Popularity: ): Welcome to The Counselling Room – along Yio Chu Kang Rd Singapore Counselling, relationship, addiction, break up, divorce, cheating stress, depression, abuse. Perhaps there is conflict in your life, with children or relationships and no one seems to understand and you don't know how to resolve it.
Five Stars Law (Popularity: ): Let’s dispense with the obvious. If you’re drunk, then don’t drive. Don’t drive, because you don’t want to hurt someone else or yourself. Don’t drive, because you don’t want to smash up your car or damage someone else’s property. And finally, don’t drive, because you don’t want to get arrested, lose your license, pay huge fines, have your insurance go through the roof and perhaps even lose your job.
The Risk Doctor (Popularity: ): Risk management consultancy and training from an international risk management expert, conference speaker on risk, and frequent author on risk topics. Site includes many articles.
Falsely Accused of Child Abuse (Popularity: ): Advice and legal referrals to aid parents/caretakers that are falsely accused of child abuse. Excerpts from newsclips depicting the epidemic of problems within the child protective agencies indicating the need for reform.
Affordable Seo Service (Popularity: ): At SEO Amplified we offer a very unique, risk-free, performance-based search engine optimization solution. If you don't rank, you don't pay. It's that simple. Once you have created your account our SEO experts will evaluate your request and let you know whether we believe your site/keyword(s) is a good candidate for our services or not.