It's really simple, run and treat your eBay sales as a business. The (legal) deductions available to one running a business will mitigate any tax issues you might have otherwise. Just a sample of expense deductions:
Postage (in and out)
eBay Fees
PayPal Fees
Taxes (some)
Accounting/bookkeeping/legal fees
Mileage (with some limitations)
Office Supplies (everything from envelopes to ink for the printer)
Subscriptions (services like Worthpoint and VCP)
That's just a start.
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