vze2tj43[at]netscape.net (Mike) wrote:

- quote -

Income is income, whether you are selling physical or
virtual products. Sounds to me like you have not formed a
company to sell this e-book and so you will need to file
Schedule C. You will probably have a profit and therefore
not only have to pay income tax, but also Self Employment
tax .. Schedule SE.

If you have income, you need to report it and pay any
resulting tax liability.

Sales tax is a completely separate ball of wax.

bex

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vze2tj43[at]netscape.net (Mike) wrote:

- quote -

I take it you are referring to sales/use taxes. In general,
no, because you are not selling tangible personal property.
Specified services are taxable in some states, but I don't
know of one that would tax the kind of transaction you
describe. You probably should contact your state tax
department to make sure, though.

If that is all you are doing, you probably don't even need a
seller's permit, and you have no sales/use tax reports to
file. If you are also selling taxable products, then your
gross receipts from sales of e-books will probably be
included on the first (gross receipts) line of your
sales/use tax report and then subtracted as nontaxable
sales.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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Hello,

I sell an e-book on the internet that provides links to
other websites that sell wholesale products. Since I am not
selling or shipping actual physical products, how would this
be reported for tax purposes? Also, should I have to pay
taxes on these transactions?

Thanks for your help.

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