Are You Required To Report Your Ebay Earnings? By Kristine McKinley

Many people ask me if they are required to report the profits they earn on items they sell on eBay on their income tax return. In short, yes.

If you sell items on eBay for a profit, then you should report your eBay sales on your income tax return, and you may owe income taxes on any profits. It doesn't matter if it's just a hobby or if you are trying to build a business - if you earned a profit it's taxable income.

Generally, any income you receive from all sources is subject to income tax unless it is specifically exempt by law (hint: eBay profits are not exempt).

You must file a tax return if your net earnings from self employment are $400 or more. You are self employed if you carry on a trade or business for profit. If you are selling on eBay with the intent of making a profit, then you are self employed.

To report your eBay earnings, you should file Form 1040, and attach Schedule C or C-EZ. Schedule C is used to calculate your net profit or loss from your business, which is then reported on your Form 1040. This is assuming you are a sole proprietor. If you are incorporated, you have to file a separate business return. You will file Form 1120 or Form 1120s (for S Corporations). If you are a partnership, you will file Form 1065.

At this point, you may be thinking “I don’t run a business; I just sell on eBay as a hobby”. Unfortunately, income from hobbies is taxable as well. Even worse, you can only deduct expenses up to your hobby income, which means losses are not deductible.

Finally, there is a common misconception that if you did not receive a 1099 or W-2, you are not required to report your income. This is not true. All income is reportable, regardless of whether you receive a form or not. EBay is only a facilitator of the auction; therefore you will not receive a 1099 from eBay reporting your sales.

To your financial success,
Kristine McKinley

Resource: http://www.isnare.com/?aid=128459&ca=Finances

Why Choose The American Blue Express? By Mario R. Churchill

The 20th century is definitely the plastics era with every American having access to credit cards or what people refer to as pseudo cash. Even the whole world is catching up with the American way of life and is now using plastics to run world businesses.

Credit cards are a very important part of modern life because of the prevalence with which they are being used in society. The world is veering towards becoming a cashless society that every person should make sure he has a credit card to pay for his daily needs.

A person who wants to get a credit card should choose the best credit card which would respond to his purchasing habits. One credit card that may be useful today is the American Blue Express.

American Blue Express credit cards are similar to other credit cards because they can be used to pay for transactions instead of cash. However, unlike other credit cards, the American Blue Express credit card

One of the reasons why people are hesitant about getting credit cards is because of the required annual fees for the maintenance of the credit cards. A person who does not want to be saddled with annual credit card fees should try the American Blue Express credit card.

Aside from the no annual payment feature of the American Blue Express it also offers cash returns on selected purchases. Users of the American Blue Express also get protection for online credit card transactions

This card aims to correct the many misconceptions about the American Express credit cards one which is the belief that it is a credit card only for rich people or those who can afford the costs of maintaining a credit card.

Getting this card will also mean getting access to a lot of other cards offered by American Express. A person can get the other credit cards for the other members of his family.

American Express caters to people of different style and preferences. There is a suitable card for everyone in the family and they can all come from American Express.

The American Express card is particularly a hit among Mexicans who belong to the upper levels of the economic strata. However, the company is now targeting the different sectors of society from the rich, the middle class and those who want to get rich.

The company also aims to target a niche market for credit cards particularly women and the younger segment of the society. The American Blue Express was created to the needs of the market

There are a lot of perks and advantages from using American Blue Express including charge summary and access to credit information anytime seven days a week. This enables a card user to organize and keep track of his expenses and payables. The annual credit summary will also be very helpful for tax filing purposes.

American Blue Express credit card holders should also check the latest special offers and bonus from selected merchants accepting the Blue card. But one feature that users will be glad to have is the fraud protection security offered by the Blue card that promises to take care of fraudulent charges against the user.

Among the other features that may perhaps encourage people to get their America Blue Express credit card is the insurance coverage for car rentals. Immediate replacement for loss cards as well as the service Hotlines.

Resource: http://www.isnare.com/?aid=128215&ca=Finances

How To Value Your Ebay Inventory For Tax Purposes By Kristine McKinley

One of the questions I hear most often from eBay sellers is how to value inventory for purposes of preparing their tax return, especially if it was purchased at a garage sale, or if you used the item before you sold it on eBay.

For new items that you purchase for inventory, make sure you keep all of your receipts. In addition, you might want to keep a spreadsheet with a description of the item purchased, date, and the purchase price, including shipping costs.

For items that you purchase from a garage sale or thrift store, you may not get an itemized receipt from the seller. So, I would encourage you to write up a receipt (carry a small notepad with you while garage sale shopping or thrift store shopping), while you are still at the garage sale or thrift store. Record a description of the items purchased, date, amount paid, and the location. Ask the seller to sign the receipt you wrote up.

The hardest inventory to value is inventory that you used for personal use before you sold it on eBay, such as clothes you bought for your children that they have outgrown. Before you sell these items on eBay, you should research similar items to see what they have sold for on eBay or similar auctions. For tax purposes, the value of your inventory is the average selling price on the similar items you researched. Print out your research, and be sure to enter the average selling price on your inventory spreadsheet, in case the IRS comes knocking.

If you clean out your garage and list the items on eBay for sale, you cannot claim a loss on their sale. The amount used as your cost basis in inventory converted from nonbusiness use can be no greater than its fair market value at their time of conversion. You also must be able to prove the property’s cost or you may be denied any basis (you’ll have to report the entire proceeds as gain).

The most important thing to remember is to keep good documents. If the IRS audits you and you can't provide documents showing how much you paid for an item, they may claim that your cost basis is $0, which means you will pay tax on 100% of the sale price instead of just paying tax on the profit.

To your financial success,
Kristine McKinley

Resource: http://www.isnare.com/?aid=128462&ca=Finances

The Secret To To Getting Cheap Car Insurance In NC By Elizabeth Newberry

Is it possible to get cheap car insurance in NC if your driving record is less than perfect and your car’s included on this year’s list of cars most at threat for being stolen? Actually, it is possible. While your North Carolina car insurance company may not be throwing discounts at you left and right, you can still find a way to get cheap car insurance.

Aside from taking advantage of discounts offered by car insurance companies, the simplest way to get cheap car insurance is by purchasing only the minimum requirements. North Carolina’s minimum car insurance requirements are $25,000 for coverage of property damage; $30,000 for coverage of the bodily injury of one person; and $60,000 for coverage of the bodily injury of two or more persons.

So, how do you know if purchasing the state’s minimum car insurance requirements is the right option for you to obtain cheap car insurance in NC?

If your car is completely paid for, you may consider purchasing the minimum car insurance requirements in NC. If you borrowed money to purchase your car, your lender will most likely require you to purchase full coverage car insurance in NC; however, once your car is completely paid for and only in your name, you are free to put any kind of car insurance on it you want. This means you can purchase the minimum car insurance requirements for the state.

Another instance in which you may want to purchase the minimum car insurance requirements in NC is if you are a student, or you are just entering the workforce. Students spend most of their time in class or studying, so finding a job that will pay high car insurance premiums is difficult. People who have just entered the workforce are trying to get on their feet and settled. Once students graduate and once new employees get on their feet, more car insurance can be purchased.

Resource: http://www.isnare.com/?aid=129068&ca=Finances

New Debt Relief Program Awards Citizens Thousands in Grants to Pay off Their Personal Debt!

It was relatively easy to get yourself in debt. Whether by poor choices or circumstances beyond ones control, understand that you are not alone. There are debt programs and solutions available to those who find themselves struggling to make ends meet.
Student loans seemed like a good idea at the time. Nearly every job requires a college degree of some sort, and grants were just not covering all of the costs of a higher education. These loans, if federally funded can now be repaid on a payment schedule based on household income and family size. This is excellent news for many who are finding their wages attached.
Home loan modifications lower monthly mortgage payments, by modifying the existing loan in full or part. Terms of the loan may be extended or interest rates may be lowered. There are eligibility requirements, such as the homeowner occupying the house. Speak to your lender regarding a modification, especially if you are already in default.
Credit card companies are now being limited to the amount of interest and other hidden fees they can legally charge. If you are already in default, there are programs that will help you negotiate with your credit card company for lower payments and/or reduced payoff amounts. It is in your best interest to check out these companies with the Better Business Bureau and/or the Federal Trade Commission to make sure they are legitimate before giving them personal information.
Take time to educate yourself on available legal programs. Qualifying is easy, and applying only takes a few short moments of your time!