Organizing Your Tax & Financial Paperwork
June 9, 2008
I was recently interviewed by Cara of The Household Helper about getting your tax and financial records organized NOW for next year.
Some of the tips we talked about include…
- Create a system NOW: a folder for 2008 taxes where you can easily insert paperwork related to your taxes.
- Rule of thumb: keep copies of anything you will be deducting for 7 years. Keep the tax return as well as the back-up for that return.
- If you are NOT deducting things like utility bills or credit card bills, you DO NOT need to keep those statements (I usually keep them until I know the last check/payment cleared).
- If you are deducting things for home office expenses, you must keep those receipts/statements with your tax return (mortgage interest, internet, utilities, phone charges, etc.)
- We talked about more tax deductions, and I even surprised Cara with a deduction she missed this year!
To listen, please visit The Household Helper Podcast and click on Show #17 – Organizing Your Tax and Financial Paperwork.
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Selling on eBay? The IRS wants it’s share…
June 8, 2008
With the economy slowing, gas prices rising, and unemployment rising, more and more people are turning to eBay to earn extra cash.
The IRS has always had an eye on eBay and even tried to force them to report details of it’s top sellers last year. While eBay resisted, the IRS is still trying to find ways to track people who sell online – especially since they suspect that over half do not report the income earned!
from DenverPost.com on 6/7/08
Selling Stuff on eBay? IRS Wants It’s Cut
Basement clutter and attic knickknacks have always been the cornerstone of eBay — after all, one man’s trash is indeed another’s treasure — but tough economic times seem to bring them out faster and in abundance.
The Internet has turned into the fastest and easiest method of turning unwanted items into a quick — sometimes desperately needed — few bucks or more.
But experts and government officials warn that although the treasure is for the selling and the extra dough is for the getting, it’s not all for the keeping.
“You’re supposed to report any profit from those sales,” said IRS spokeswoman Jean Carl. “It’s a voluntary system for taxpayers to report it, and people are trusted to do that.”
And it’s not just eBay. Users of online marketplaces or auction services such as Craigslist.com and uBid.com are liable as well.All this comes as a surprise to many casual sellers who are doing little more than clearing out some space in their homes.
“I had no idea that if I wanted to sell on eBay that I have to pay the IRS,” said Ann Tran, a Golden resident who is contemplating eBay for some extra bucks.
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