Ebay--is this leagal and should i do it? or will i get in trouble?

Question

so im 16 and i just created an ebay accounts (with parents permission) as i was reading, it said i had to be 18. my parents said to just ignore that because it doesnt matter. as i read more and more yahoo answers on ebay questions, it sounds like you have to pay taxes and the amount depends on what state you are in?

i reallly need cash and ebay seemed the most convinent. should i contiune even though im underage but have parents permission? will i get in trouble? how would the state find out? would they send me taxes and i would have to say that i cant pay them because im underage?

im confused!

Answer 1

As long as your parents are OK with it, you should be OK with the ebay account.  Just don't go out of your way to announce there that you are 16.

As far as the taxes go, if you are just selling your old stuff that you don't want any more, you'll almost surely be selling it for less than the original cost, and wouldn't owe any taxes.  If you get to the point where you are buying things to sell them on ebay at a higher price, then taxes will be due.

And if you get to that point, no you can't just say you can't pay them because you are underage - you'd be making money, so would have to keep some of that back for taxes.

Answer 2

There are 2 separate issues here.

1.  Since you are under age 18, you cannot enter into a legally binding contract.  When eBay discovers that you are under age, your account will be canceled.  You may also be barred from opening an account with eBay for as long as they choose including permanently.  Your parents cannot grant you "permission" to have an eBay account contrary to eBay's Terms of Service.  They would have to open the account themselves and sell the items themselves.

2.  All income is taxable if you are selling items on eBay for more than you paid for them.  If your just selling excess "stuff" for less than you paid for it (or the value of a gift at the time of its receipt by you) then no taxes are due on the money you receive.

Answer 3

You are not breaking the law by having an eBay account, you are violating eBay policy.  As long as you do not do anything detrimental to eBay, the worst thing that can happen is your account will be closed.

Income taxes are another issue.  Generally if you are selling your personal property you are not subject to income tax.  If you are acting as a broker, a dealer, or otherwise operating as a business you are subject to paying income taxes.

If you plan to operate a business, start one.  If you just want to sell some stuff on eBay, go for it!