Question

Garage Sales and Resell Items

Forum|Forum|3 years ago
August 31, 2022
1 reply
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I do Garage sales and Resell new items at the same time these year about little over $2500 made by people sending through Zelle

Would that effect my taxes? do i have to report it? im sure i will be getting a 1099-K from Zelle

Thank You!

John-H2021

Hello

There are 2 ways to report the income.

1. If it is a hobby then the income is reported on schedule 1 for the full amount of the 1099 no expenses allowed to be taken

2. If it is a business the it would be reported on a schedule C (self employed income). You would report the 1099 as income and then deduct the expenses you have againist making that income.

Here are a few helpful links

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...

https://turbotax.intuit.com/tax-tips/self-employment-taxes/4-tax-tips-for-money-making-hobbies/L89qz...

https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

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M

mgjr73

A lot of ebay sellers are just selling old stuff and don't consider it a business, hence falls under "hobby" as you described it. Selling on ebay has fees and shipping costs involved. So if we get a 1099K report with $2000 gross but in reality only netted $1500, how do we account for that on our tax forms if we are not allowed to deduct expenses?