What Taxes You are Responsible for as an eBay Seller?

There are three types of tax that you will be responsible
for when you start your eBay business.  They are 1) sales
and use tax, 2) payroll tax and 3) income tax.

Sales and use tax - Just about every state, and many cities
and other local authorities, imposes a sales tax on items
sold.  Each state has different rules, so it's important to
find out the rules in your state and city.  As a seller,
you are responsible for collecting and remitting the proper
sales tax to the state you live in.  You are also
responsible for preparing and submitting a report detailing
the amount of your sales and the sales tax collected.

You may also be subject to use taxes.  This is taxes on
goods you purchased out of state that you did not pay sales
taxes on.  The use tax generally applies to items purchased
out of state which would have been subject to sales tax if
the purchase transaction had taken place in state.  The use
tax came about from the concern that purchasers could avoid
paying a state's sales tax by making their purchases
outside the state.

Payroll tax - The second type of tax that you are
responsible for as an eBay seller is payroll tax.  If you
hire employees to help you with your eBay business, you are
required to withhold federal income taxes, Social Security
and Medicare taxes, and state income taxes.  These taxes
must be submitted to the proper tax authorities on a
periodic basis (usually quarterly).  In addition you must
pay unemployment insurance and workers' compensation on all
employees.

If you operate your business as an S or C Corporation, you
will need to setup payroll for yourself, and remit payroll
taxes on your own salary.  If you operate as a Sole
Proprietorship, you pay self employment tax instead of
payroll tax.

Income tax - The final type of tax is the income tax.  No
matter how your business is structured, you will be
required to pay income tax on the business' net profit.

Sole Proprietors pay income tax on their personal income
tax return (Form 1040). Your business profit is calculated
using Schedule C - Profit or Loss From Business, and your
profit is added to your other income to determine your tax
liability.

S Corporations file Form 1120S to report the business
profit or loss.  A Schedule K-1 is then prepared, which
shows each shareholder's share of the net profit or loss
that needs to be declared on their personal tax return.

C Corporations file Form 1120 to both report the business
net profit and to calculate the resulting income tax.

Depending on the state you do business in, you may also be
subject to state income taxes on your business profits.
The state level taxes are often referred to as franchise
taxes.


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Kristine A. McKinley, CPA, Certified Financial Planner®,
offers financial and tax planning on an hourly, fee-only
basis. For more information on eBay taxes, sign up for our
free special report 'Tax Tips for eBay Sellers' or visit
our blog.
=> Special Report 'Tax Tips for eBay Sellers' -
http://beaconfinancialtips.typepad.com/ebaytaxtips/2007/02/
free_special_re.html

Interesting Facts and Trivia On Omega Watches

Omega SA is a watch company based in Biel/Bienne
Switzerland and is one of the more prestigious brands in
timepieces. It is one of the most prestigious brands of the
Swatch Group. Here are some more interesting facts and
trivia on Omega Watches.

Omega's Speedmaster Professional Chronograph was the first
watch worn on the Moon. A chronograph is a watch with both
time keeping and stopwatch functions. Chronographs were
produced as early as the 18th century and today include
analog, digital and analog-digital chronograph models. NASA
has continued to use the Omega Speedmaster Chronographs on
all of its missions.

The Omega Seamaster 300M Professional Chronometer is the
current official James Bond watch. The Chronometer is a
large, strongly built watch especially designed for precise
time keeping on ships at sea. The name is sometimes loosely
applied to any fine watch. The features that distinguish a
chronometer from a watch include:

1. A heavy balance wheel, the axis of which is kept always
vertical

2.  A balance spring wound in cylindrical shape, instead of
a nearly flat helix

3. A special escapement

4. A fuse where the power of the mainspring is made to work
through a lever arm of continuously changing length

Pierce Brosnan wore the Seamaster in each of his Bond
movies including, Golden Eye. In the Golden Eye film the
automatic Seamaster 300M Professional was featured. Daniel
Craig, the current James Bond of the film "Casino Royale",
wears his Omega Seamaster.

For the 40th Anniversary of James Bond a special
commemorative edition of the watch was made available where
only 10,007 units were produced. The watch is identical to
the model: 2531.80.00 except the blue watch face had a 007
logo inscribed across it. The band also had 007 inscribed
on the clasp.

Luc Besson's movie The Big Blue featured Omega's Seamaster
Professional 600 which has become a collectible. Omega has
consistently been the official timekeeper for the Olympics
since the 1932 Summer Olympics. It was the official
timekeeper for the 2006 Winter Olympics and will be for the
2008 Summer Olympics as well.

In 1999 Omega made history by introducing the first
mass-produced watch incorporating the revolutionary
Co-axial escapement

Many famous celebrities have  endorsed  the prestigious
Omega brand. These include Cindy Crawford, Nicole Kidman,
Ernie Els, and Michael Schumacher. Currently, Abhishek
Bachchan has been made the new brand ambassador. He is the
son of Hollywood icon Amitabh Bachchan and renowned actress
Jaya Bhaduri. As you can see the Omega Speedmaster Watch
and Omega Seamaster Watch have become very famous and
continue to be one of the world's most famous brands.

Copyright (c) 2007 Patrick Bedford
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For more information about Luxury watches visit
watchesonnet.com (http://www.watchesonnet.com). To find a
great deal on Omega Watches visit our Omega Watch Section
http://www.watchesonnet.com/Omega.html).