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September 12, 2016 Ms. Stephanie Jimenez 2509 Blake Road NW Albuquerque, NM 87110 Dear StephanyStephanie: I just wanted to let you know that, as As your Financial Planner, I’m happy to respond to your request for more information and clarification on the tTax status of eBay profits. As you in all probability are all ready aware ofprobably know, you can use eBay to clean out your closets or eBay can be used to run a small business. You’rer smart to enquire about your tax liability. Although there is no clear line that separates fun from profit or a hobby from a business,. oOne thing is certain;, the IRS taxs taxes all income. There are aA number of factors that help determine whether or not your hobby should or should not be considered a business. To use eBay safely, the following questions should be consideredyou should consider the following questions: 1. Do you run the operation in a business manner? Do you keep records, is do you track your profit and loss tracked, and how about keepingdo you keep a seperate separate checking account? 2. Do you devote alot a lot of time and effort to eBay? If you spend eighteen 18 hours a day selling on eBay the IRS would tend to think you’rer in a business. 3. Some peopleDo you depend on the income from their your eBay activitys activities for yourtheir livelihood?. 4. Are you sellingDo you sell items for more then than they cost you? If you spend five dollars$5 for a Garage garage Sale sale vase and sell it for fifty $50 dollars the IRS would probably consider this a business transaction. All profits is are taxable. Even forThis includes eBay sellers who are just playing aroundnot taking it seriously. If you wish to discuss this farther further please call me at 256-1002. Sincerely, Marcy Martinez Certified Financial Planner...