Vinyl Asylum Welcome Licorice Pizza (LP) lovers! Setup guides and Vinyl FAQ. |
|
In Reply to: RE: Are you sure about tax treatment ? posted by vinyl1 on July 10, 2017 at 20:04:47:
I looked into this. If you make sales consistent with and incidental to a hobby interest and eBay sales don't grossly exceed purchases in a given year, it is extremely unlikely that you would be regarded as behaving criminally. You can Google around and find what constitutes a "business" versus a "hobby" to the IRS but it's all gray area.
If your proposed sales DO greatly exceed your purchases, the right thing to do would be to declare profit as schedule (?), other income. So be sure to have good enough bookkeeping to show the profit after expenses as accurately and low as possible, that you can whip out smartly in an audit.
In any case, eBay does not does not issue 1099 tax forms to sellers, nor does it report seller's sales figures to the IRS. So no eBay sales by themselves will trip any flag with the IRS and they'd have to catch it in an audit. (You *know* if you're doing stuff that will trip a flag with the IRS and get you audited!-- The downside is that some secret percentage of audits are random and you might face one regardless.)
This post is made possible by the generous support of people like you and our sponsors:
Follow Ups
- RE: Are you sure about tax treatment ? - mr.bear 07/11/1701:17:32 07/11/17 (2)
- RE: Are you sure about tax treatment ? - dave slagle 05:26:21 07/11/17 (1)
- Re: Thanks! nt - mr.bear 11:58:47 07/15/17 (0)