Taxes is an issue when running an Auction Business. But is there
a grey line when it comes to declaring it?
It's really within reason if you're going to do a huge amount of
it, a small amount is negligible.
Some people want to have a small business for write-offs, you
might want to consider taking it to the next level and be able
to write off some of your expenses like your computer, office
space, supplies, etc.
Each state and each province has their own amount of sales you
can do without declaring, & charging taxes. Check with your
state to see what amount you have to do before you start taking
taxes.
The BC goverment (where I live) gives you an allowance of
$30,000 before you have to charge for sales tax, that's for
someone who legally has a business.
There's definate advantages of having a business license,
declaring your income and being able to have write-offs. That
being said, legally you have to declare taxes if you're
profiting from it.
Are You Holding Onto Too Much Product?
We all love to make money but after a while when you get too
much product built up, you can start losing money. Why would we
do that?
What happens is we get in a mindset on the value we feel our
items are worth verses, what we can get for them. That's why
when purchasing items it's important to keep in mind that you
make money when you buy, Not - When you Sell.
But we also get into the territory where you feel you should get
a certain price for something. And that's what we need to
shake.... immediately.
You need to be watching your products and if something isn't
pulling in the money anymore, you need to blow it out. Product
on the shelves is not money in your pocket.... it's out of your
pocket.
When we relate this to your eBay business, the same goes for
what you have in your eBay store. Keep it fresh and alive. Have
special offers, only for those who are buying an auction AND a
store item.
Make it something that they want and give them a deal. Blowout
product that you've had for too long. This will give you money
up right away and gets you product you can actually do well with.
So, get out of the mind frame that to you need to make "X"
amount from certain products, if they're not pulling it in, then
"X" them out and move onto newer hotter products!
About the author:
Vera Raposo has been making a living with online auctions since
1997. With thousands of completed auctions under her belt, Vera
is now sharing some of her best auction strategies in a free
90-minute interview at
http://www.auctionstrategists.com/special
