Ms. Stephanie Jimenez 2509 Blake Road NW Albuquerque, NM 87110 Dear Stephany: I

Question

Ms. Stephanie Jimenez

2509 Blake Road NW

Albuquerque, NM 87110

Dear Stephany:

I just wanted to let you know that, as your Financial Planner, I’m happy to respond to your request for more information and clarification on the Tax status of eBay profits.

As you in all probability are all ready aware of, you can use eBay to clean out your closets or eBay can be used to run a small business. Your smart to enquire about your tax liability. Although there is no clear line that separates fun from profit or a hobby from a business. One thing is certin, the IRS taxs all income.

There are a 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 considered:

1.Do you run the operation in a businesslike manner? Do you keep records, is your profit and loss tracked, and how about keeping a seperate checking account?

2. Do you devote alot of time and effort to eBay? If you spend eighteen hours a day selling on eBay the IRS would tend to think your in a business.

3. Some people depend on the income from their eBay activitys for their livelihood.

Are you selling items for more then they cost you? If you spend five dollars for a Garage Sale vase and sell it for fifty dollars the IRS would probably consider this a business transaction.

All profits is taxable. Even for eBay sellers who are just playing around.

If you wish to discuss this farther please call me at 256-1002.

Sincerely,

Marcy Martinez [OR Your Name] Certified Financial Planner

******PLEASE CORRECT ALL SPELLING AND GRAMMER ERRORS AND PUT IN BOLD PLEASE**********

Explanation / Answer

Please note that I will be doing the corrections and writing the rationale for the corrections under brackets.

********************************

Ms. Stephanie Jimenez

2509 Blake Road NW

Albuquerque, NM 87110

Dear Stephany:

I just wanted to let you know that, as your Financial Planner, I’m happy to respond to your request for more information and clarification on the Tax status of eBay profits.

As you,{ insert punctuation mark-comma} in all probability,{ insert punctuation mark-comma} are already{already instead of all ready should be used here, both has different meanings} aware of, you can use eBay to clean out your closets or eBay can be used to run a small business. You're{ Your are instead of Your should be used here. Also, You're is the short form of You are} smart to inquire{ Although both enquire and inquire convey similar meaning, inquire is more preferred in formal American English} about your tax liability. Although there is no clear line that separates fun from profit or a hobby from a business. One thing is certain{spelling mistake}, the IRS taxes{Spelling mistake} all income.

There are a number of factors that help determine whether or not your hobby should or should not { remove should not, it is redundant in the sentence. Two negative should not be in a single sentence}be considered a business. To use eBay safely, the following questions should be considered:

1.Do you run the operation in a businesslike manner? Do you keep records, is your profit and loss tracked,{ remove comma} and how about keeping a separate{spelling mistake} checking account?

2. Do you devote a lot{a lot and not alot, meanings are different} of time and effort to eBay? If you spend eighteen hours a day selling on eBay the IRS would tend to think you're{ Your are instead of Your should be used here. Also, You're is the short form of You are}in a business.

3. Some people depend on the income from their eBay activities{ spelling mistake} for their livelihood.

Are you selling items for more then they cost you? If you spend five dollars for a Garage Sale vase and sell it for fifty dollars, { add comma} the IRS would probably consider this a business transaction.

All profits are{ the plural form are instead of is should be used here} taxable. Even for eBay sellers who are just playing around.

If you wish to discuss this further { further is the right word, not farther} please call me at 256-1002.

Sincerely,

Marcy Martinez [OR Your Name] Certified Financial Planner

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