- Reporting Auction Income and the Tax Gap
- Tax Tips – E-Business and E-Commerce
- Tax Tips for Online Auction Sellers
Why YOU Should Care:
Certain online sales held by non-retailers are not required to be reported.
June 17, 2012
Occasionally, I write about tax topics for other business sites. Below is a preview of an article written for ByAimee.
The most common questions I receive from online merchants pertain to sales tax collection and business deductions.
Offline, sales tax are collected whenever physical property is exchanged. This amount is determined by the jurisdiction in which you do business. There is a misconception that online sales are free of sales tax. This is not completely accurate.
Business owners are generally allowed deductions for ordinary and necessary expenses. This includes items like advertising, supplies, and utilities. Online business owners may be able to deduct fees associated with eCommerce or allocate other expenses between personal and business use.
Read the full article at ByAimee.