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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.)
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Topic - friend needs eBay seller recommendation for NYC - learsfool 06:32:12 07/10/17 (10)
- RE: friend needs eBay seller recommendation for NYC - Andy43 09:11:38 07/12/17 (0)
- Discogs is an alternative... - fishy 14:17:33 07/10/17 (0)
- Here's the problem - vinyl phanatic 13:43:15 07/10/17 (5)
- Are you sure about tax treatment ? - Ross 19:42:58 07/10/17 (4)
- RE: friend needs eBay seller recommendation for NYC - mr.bear 10:18:48 07/10/17 (0)
- RE: friend needs eBay seller recommendation for NYC - MannyE 06:35:53 07/10/17 (0)