Buying/Selling on paypal considered income??

[CCBmama0f3]

I buy/sell/trade items on paypal. For example I bought something for $100.00, then a week later I sell that item for the same amount of money, using that money to then buy something else then sell again....etc. I am disclosing everything. So is that considered income when I really never saw the money, just used it on something else. I have alot of transactions but really the money coming back is like the original money coming back not money adding up that I could use. But if you look at the transactions it looks like I received lots of money over the last six months, but I didn't. Just lots of transactions. I have emailed my lawyer and am awaiting his response but I am sick to my stomach over this My actual pp balance is 20.00

[discombob1]

Ok, I have to ask... why do you do it if you don't make money?

[LadyInTheRed]

The difference between what you bought an item for and what you sold it for, less expenses you incurred in the transaction, is income, even if you used the income to buy something else to sell. If you bought something for $100 and sold it for $110, you have $10 in income. If you now buy something else for $110 and sell it for $120, you have another $10 in income, for total income of $20. If you had to pay Paypal fees of $1 per sale transaction, your total net income from the two sales is $18.

[CCBmama0f3]

Ok, I have to ask... why do you do it if you don't make money?

Well it is a bit of a hobby.... It is a way to use the items but for a short period of time. I don't (obviously) have money to buy alot of stuff to have but this way I get to use an item, if I don't like it I sell it and now have my original money back to try something else. It's kind of similar to trading, I guess.

[CCBmama0f3]

The difference between what you bought an item for and what you sold it for, less expenses you incurred in the transaction, is income, even if you used the income to buy something else to sell. If you bought something for $100 and sold it for $110, you have $10 in income. If you now buy something else for $110 and sell it for $120, you have another $10 in income, for total income of $20. If you had to pay Paypal fees of $1 per sale transaction, your total net income from the two sales is $18.

I always sell it for what I paid and actually lose money with each transaction b/c I eat up the pp fees. I guess if I print all my pp history the lawyer will be able to see what I mean??

[LadyInTheRed]

Sounds like your paypal transactions don't create any income. I don't think you need to fear that your attorney's response will bring bad news.

[discombob1]

I would just be prepared to explain that to the TT. I would imagine you can show that you don't actually make money. Given the explanation you've provided it should be fine since your account provides a good trail.