Hobby or a Business?

[91nordic29]

I have been selling a craft that I make on ebay. Don't make much on it but I am concerned that it may come back to bite me tax - wise.
How do I know if I should start claming any income.
I plan on consulting an accountant but wanted to get the Hot Boat "pros on everything in life":) opinion also.

[Bryan Rose]

I have been selling a craft that I make on ebay. Don't make much on it but I am concerned that it may come back to bite me tax - wise.
How do I know if I should start claming any income.
I plan on consulting an accountant but wanted to get the Hot Boat "pros on everything in life":) opinion also.
It really depends on if you want to be by the book or not.....Any income has to be claimed and reported regardless of the way it is made. Now on the other hand it depends on how the money is deposited to your account etc.....you will get a lot of responces to this but remember if you do it by the book per say you will be sleeping better at night and will be doing all of this for little or no pay after the TAX man eats you earnings..as you said a good CPA can help you navigate the TAx world Ebay

[91nordic29]

If I keep doing it "on the side", I just wonder if the IRS checks ebay/paypal or ???

[DCBob]

If I keep doing it "on the side", I just wonder if the IRS checks ebay/paypal or ???
No.......but they check ***boat ;) :)

[91nordic29]

No.......but they check ***boat ;) :)
Oh,CRRRAPPP!:jawdrop: :D

[ratso]

I have been selling a craft that I make on ebay. Don't make much on it but I am concerned that it may come back to bite me tax - wise.
How do I know if I should start claming any income.
I plan on consulting an accountant but wanted to get the Hot Boat "pros on everything in life":) opinion also.
Why would you want to try and "skirt" the law. We need that tax money to pay for millions of illegal aliens...:D

[moneypit]

Try using several paypal acct's instead of having it all go into one. Have kids? put the acct's in their name...but it boils down to how much were talking about...? a couple thousand or tens of thousands.
BTW, you can write off all my advice....

[Xlration Marine]

Why would you want to try and "skirt" the law. We need that tax money to pay for millions of illegal aliens...:D
Yea boy, gotta take care of the them.

[Pheelin Phroggy]

what... are you auctioning used coconut shell bikini tops on ebay now? hahaha

[Glamasu]

If you choose to roll in the gray area be CAREFUL!!!!
I did and it all cought up to me....I set a payment schedule up for the taxes owed and the IRS checked my bank acct...When they saw how much was avail. they levyed the acct and just like that all my money was gone.....Then they took too much so now trying to get the overpayment back is a big a hassle as ever....Dont think they won't or can't get their money....They did.:devil: :devil:
Or I couldn't hide stuff well enough.

[rerfert]

Hobby
and keep it liquid as much as possible with the least amount of paper trail.
Well that's what I heard:idea:

[XtrmWakeborder]

If you make a profit 3 out of 5 years it is a business. I'm in auditing so I know very little, but I believe the income you make is income period and "should" be reported. As far as I understand, the problems that come along with hobby vs. business come when you start deducting stuff. Consult a CPA.:D

[91nordic29]

what... are you auctioning used coconut shell bikini tops on ebay now? hahaha
I would probably make more selling those, OL:)