Another Newbie Question - Be nice Lumpy :-)

Okay guys, here is yet another question that many of you will find to
be stupid and obvious, so please don't scorch me too badly:

My wife and I are doing eBay as a hobby... we are only selling stuff
we already own; basically the kind of stuff you would sell in a local
classified or yard sale. We are making no new investments in order to
turn a profit, and we are not looking at our eBay time as either a
get-rich-quick plan or a work-from-home opportunity. It is strictly a
fun hobby that earns us a bit of money and allows us to clear out some
older stuff we no long want or need. (we are also trying to get out
of debt and using this as a way to have a bit of fun while paying off
some stuff a little faster).

This all being said, is what we are doing on eBay a "real" business?
Do we need to go get a business license? Do we need to charge sales
tax to people in our state? (you don't charge sales tax at a yard
sale). Also, do we need to pay taxes on the stuff we are selling?
(once again, we are selling stuff we already own just like you would
at a yard sale).

I don't want to be on the business-end of an IRS audit, but since this
is all stuff we bought and already paid sales tax on (many years ago),
it seems unfair to have to pay tax on it all again... of course I
don't think anyone has the illusion that the IRS is all about
fairness. :-)

I really appreciate all the answers people have been giving me on my
questions so far... Many of you are full of very good information and
great ideas.

-Incubus

P.S. I live in the deep south, so we have lots of "Thumpers" here
that will go dor-to-door... turning the hose on them is one idea, but
a better and more subtle way is to start flirting with them... make
them very uncomfotable... invite them in, then sit VERY close and keep
putting your hand on their knee... once they get too uncomfortable,
they'll leave and never come back... :-)
.

Relevant Pages

  • Re: home office deduction
    ... Maine has the same thing on claiming sales tax if you bought in a state that didn't have any - and of course we're also very close to NH - not close enough to really make it worth going there for that reason. ... the home office may be considered business ... personal residence gain. ... business in the year of the sale, or if you don't meet the "two-year ...
    (sci.med.transcription)
  • Re: Another Newbie Question - Be nice Lumpy :-)
    ... classified or yard sale. ... we are selling stuff we already own just like you would ... is all stuff we bought and already paid sales tax on, ...
    (alt.marketing.online.ebay)
  • Re: Another Newbie Question - Be nice Lumpy :-)
    ... My wife and I are doing eBay as a hobby... ... classified or yard sale. ... do we need to pay taxes on the stuff we are selling? ... is all stuff we bought and already paid sales tax on, ...
    (alt.marketing.online.ebay)
  • Re: Another Newbie Question - Be nice Lumpy :-)
    ... My wife and I are doing eBay as a hobby... ... classified or yard sale. ... do we need to pay taxes on the stuff we are selling? ... is all stuff we bought and already paid sales tax on, ...
    (alt.marketing.online.ebay)
  • Re: Newbie...out of state resale
    ... Your California resale certificate waives paying sales tax on anything ... because they assume you collect sales tax from your customer. ... Selling out of state exempts you from collecting sale tax on that ...
    (misc.taxes)