Creative Commons Flickr photo by Alan Cleaver
When we first started doing eBay, it was like running little yard sales. It felt like a hobby that made us some extra pocket money. However, after a couple years of listing and building a store with 1000+ items, we realized that we were making A LOT of money. Enough to quit our jobs. Great! But we also realized we needed to pay taxes on all our scavenger loot.
Paypal tells the IRS when you make over $20,000 in a year.
So like any business, we had to learn how to do accounting for our growing eBay business. This means claiming BUSINESS EXPENSES. In this episode, we talk about how we use Outright.com (Now called GoDaddy Bookkeeping to keep it real simple.
We’d love to hear how you handle your eBay accounting. Just talk in the comments.
Remember to check out the IRS standard mileage deduction. For 2013, it’s 56.5 cents for every mile driven for business.