The Complete Tax Guide for E-commerce Retailers Including Amazon and EBay Sellers: How Online Sellers Can Stay in Compliance with the IRS and State Tax Laws

Martha Maeda

Sept 2011 · Atlantic Publishing Company

About this eBook

Fed up with the numerous violations of tax law by individuals and businesses selling goods on eBay, Amazon, and other websites, the IRS is pushing Congress to make online marketplaces responsible for reporting sales information. EBay's own statistics suggest there are 1.3 million people around the world who make their primary or secondary source of income through eBay, with just over 700,000 of those people in the United States. Today, about 29 million people in over 160 countries use Amazon.com. Last year, an IRS advisory committee recommended that online auction sites be required to file reports of sales transactions with the IRS. The committee also suggested requiring sellers to obtain taxpayer identification numbers, which would let the government track the transactions.

If you are an eBay or Amazon seller, you might be paying more than you have to in taxes because you have not focused on all that you can deduct. You will learn how to take advantage of the legal tax loopholes available and how to choose the proper, legal business structure. If you run your online selling business in a businesslike manner with intent to profit, you can take deductions for business use of your home and also many other deductions, even though they might produce a loss that reduces the taxes you owe on your day-job income.

You will learn the categories of deductions on the Schedule C, which is the form most small independent businesses must file. You also will learn to use the complete list of deductions to see what kinds of items you should be tracking all year and how to set up your records using a system that tracks those categories, including how to computerize the bookkeeping process. This guide will teach you what business expenses you cannot deduct as well.

This brand new, up-to-date book covers everything you need to know to balance the books, including assets and liabilities, keeping track of transactions, payroll, sales tax, balance sheets, keeping a ledger and journal, financial statements, operating accounts, and complete up-to-date tax information. You will learn how to set up a simple, quick, and audit-proof recordkeeping system that works. The Complete Tax Guide for E-commerce Retailers including Amazon and eBay Sellers: How Online Sellers Can Stay in Compliance with the IRS and State Tax Laws explains the ten biggest tax mistakes and how you can avoid them. All this will help you keep money in your pocket and cut down the amount of money going to Uncle Sam.

Atlantic Publishing is a small, independent publishing company based in Ocala, Florida. Founded over twenty years ago in the company president's garage, Atlantic Publishing has grown to become a renowned resource for non-fiction books. Today, over 450 titles are in print covering subjects such as small business, healthy living, management, finance, careers, and real estate. Atlantic Publishing prides itself on producing award winning, high-quality manuals that give readers up-to-date, pertinent information, real-world examples, and case studies with expert advise. Every book has resources, contact information, and web sites of the products or companies discussed.

Ratings and reviews

With the economy continuing to get worse every week, more and more people are finding a second income by becoming an online seller on popular sites like Amazon, eBay and Etsy. Even television is getting into making money by selling used items such as Pawn Stars, American Pickers, and Storage Wars. Of course Amazon and eBay have been available to the public for many years before these shows existed. Some people may find it as a hobby selling collectables, antiques, old books, used items, or handmade crafts online, while others are making a small if not large income from having an online store.     Just as bloggers now have to have a disclaimer on what review copies they receive, the government is now cracking down on e-Sellers. When the Housing and Economic Recovery Act of 2008 went into effect in 2011, e-Sellers now have to turn in your newfound income to the IRS, especially if you are bringing in at least $20,000 from your e-Selling.     The Atlantic Publishing Group has released a new book by Martha Maeda titled The Complete Tax Guide to E-commerce Retailers that touches on this very subject.     I didn’t realize that starting an online shop wasn’t exactly that easy, especially when it is more than just a hobby. You have get a state license, create a name for your shop, get a logo, open a separate bank account, get a Federal Tax ID Number, and get a post box. And that’s just getting you started. You have to keep records on literally everything related to your business. This book explains in Laymen terms on how to get all the right paper work for your business, and what the correct tax forms you should use. There’s a bonus CD-ROM contains all the IRS tax forms that are within the book and a few sample business plans to get you started.     If you are interested in becoming an online seller or if you already are one, I recommend that you read The Complete Tax Guide to E-commerce Retailers.    *Disclaimer: I received a free review copy from the Atlantic Publishing Group.

About the author

Martha Maeda is a freelancer, ghostwriter, and author of more than 20 books including The Complete Guide to Green Building and Remodeling Your Home, Basic Guide to Investing in ETFs, How to Wipe Out Student Loans, How to Solar Power Your Home, How to Open & Operate a Financially Successful Independent Record Label, and 101 Sunday School Activities on a Tiny Budget. She is passionate about helping people who might not otherwise become authors to self-publish their work and discover their writing potential. She currently lives with her family in Orlando, Florida.