It just goes into miscellaneous income w/ no 1099 form. You are only supposed to claim NET income. Unless you're doing big business (i.e. the IRS wouldn't consider it a "hobby"), don't bother taking actual deductions for expenses, just factor that into your original number and only supply net, rather than gross income.
Deadbeat applies to somebody that is intentionally avoiding paying taxes on legitimately taxable income.
I guess 98% of people are NA are deadbeats then, I had better stop dealing with all you jerks I bet there aren't even 10 people on these boards that report their internet income to the IRS. ~~NGD
It just goes into miscellaneous income w/ no 1099 form. You are only supposed to claim NET income. Unless you're doing big business (i.e. the IRS wouldn't consider it a "hobby"), don't bother taking actual deductions for expenses, just factor that into your original number and only supply net, rather than gross income.
I think its better to keep track of actual deductions. From the post office to CD Repair machines and the cost to get the items that is alot of money to deduct.
You will end up with a big loss (on paper) by claiming the use of a home office, miles, electricity, internet bills.... the list goes on. Fund your hobby, make money, and get a discount on your taxes! Take the HR Block tax course. That money I paid for the course provides info that is priceless!
I dont think ill end up with a loss on paper. Because, well it would be pointless to lose money when you run a business. But it can drastically reduce the amount you pay by claiming all your deductions.
You really don't lose money. Depreciation of your car, home, etc. creates a big paper loss, especially with a new, small business like an ebay store. Can you, or do you want to have a loss for 10+ years though..... no.
Important Note: If this qualifies as a "hobby" for you (everybody here that's not doing 10's of thousands in business), you CANNOT deduct losses beyond the income from the hobby. And you definitely should NOT deduct the home office or internet bills unless you REALLY want to get audited.
NGD - there are quite a few of us that aren't producing net income from internet selling. Personally, I'm happy to break even, usually, since then I just "rented" the game for free.
And it really wasn't my intention to offend you. I'm not calling anybody a jerk, or saying I wouldn't do business with them. Whether people do their own taxes correctly is really none of my business (it's not like I'm going to tattle to the IRS about anybody ), but for the purposes of this discussion, I think my stated opinion is apt. And if somebody feels they fall into that category they may want to reevaluate how they're handling things prior to getting the ominous letter from the IRS informing them of an impending audit.
You're right that people, in general, do lots of little illegal things all the time without realizing it or maybe without caring about it. But if you KNOW you're doing something wrong, and you have the ability to evaluate the risk/reward, at least make an informed decision so you don't come crying when the hammer eventually falls.
Comments
Is it better to have an accountant do it? I just wish the process wasnt so confusing.
I'll have to look into all this stuff. Never knew any of this.
Deadbeat applies to somebody that is intentionally avoiding paying taxes on legitimately taxable income.
I guess 98% of people are NA are deadbeats then, I had better stop dealing with all you jerks
~~NGD
It just goes into miscellaneous income w/ no 1099 form. You are only supposed to claim NET income. Unless you're doing big business (i.e. the IRS wouldn't consider it a "hobby"), don't bother taking actual deductions for expenses, just factor that into your original number and only supply net, rather than gross income.
I think its better to keep track of actual deductions. From the post office to CD Repair machines and the cost to get the items that is alot of money to deduct.
You will end up with a big loss (on paper) by claiming the use of a home office, miles, electricity, internet bills.... the list goes on. Fund your hobby, make money, and get a discount on your taxes! Take the HR Block tax course. That money I paid for the course provides info that is priceless!
NGD - there are quite a few of us that aren't producing net income from internet selling. Personally, I'm happy to break even, usually, since then I just "rented" the game for free.
And it really wasn't my intention to offend you. I'm not calling anybody a jerk, or saying I wouldn't do business with them. Whether people do their own taxes correctly is really none of my business (it's not like I'm going to tattle to the IRS about anybody
You're right that people, in general, do lots of little illegal things all the time without realizing it or maybe without caring about it. But if you KNOW you're doing something wrong, and you have the ability to evaluate the risk/reward, at least make an informed decision so you don't come crying when the hammer eventually falls.