Do you have to pay taxes for selling on amazon?
Question by honest questions: Do you have to pay taxes for selling on amazon?
So.. I decided to sell some things I no longer use on amazon and made a killer amount of money in just two days. Now, mind you, these sold items were listed at a price LOWER than what I bought them for originally a few years ago. Therefore I wouldn’t have to write them off on taxes. However, say if I wanted to, as a hobby, go collect books from flea markets or salvation army for cheap prices, and then resell them on amazon for more money. Would I have to write that profit off on taxes? If so… how the hell much do I get to keep of that profit and how much would I have to put aside for taxes? Example:
I buy a book for .99c at a flea market.
I sell it for $ 5.00 on amazon.
I profit $ 4.01
How much of that $ 4 do I have to put aside for taxes at the end of the year to pay those back taxes and how much can I put in my pocket?
Answer by kckid2
You have to pay income taxes on profits realized from sales, yes. The rate depends on your tax bracket. And you didn’t provide that info.
If you become a dealer, meaning you are in the business of buying low and trying to sell higher , then you also have self employment tax of 15.2% to tack on to that. It can get pretty expensive tax wise.
What do you think? Answer below!
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