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eBay Sales IRS Taxable Income?

Don't you love this time of year, when you can look forward to spending hours doing your taxes, scrounging for tax forms, and year end reports. If you're a big eBay user, you might have an unpleasant surprise if you get audited by the IRS. If you have a profit motive, yes you owe taxes.

In tax law, there is no clear, bright line that separates fun from profit, or a hobby from a business. But IRS instructions make it clear that all income — a category that includes bribes, gambling winnings, kickbacks and money made in illegal activities — can be taxed.