New Tax Reporting ($600 Threshold per year) and Consignments 21 21

[Mr. Spider-Woman]

My understanding is non-business sellers (aka hobby sellers) can only deduct cost of goods sold (COGS) and literally nothing else.

[FigaroToe]

On 2/2/2022 at 1:30 PM, Beastfeast said:

That's what I saw, too.  Anyone who's sold with them in the last year (or previous years) have any insight?  

Did you ever get an answer for this? I realize this is 2+ years old, but I was wondering how MCS handles consignment sales given we don't give him our SSN.

[shadroch]

 Almost anyone can change their non-business status by filing a few forms online and paying a couple of fees. In NY, it was a three-step process, completed in a day. 

Wells Fargo did everything for me in Nevada for $20, and I've three in Arizona that cost less than $100 all-in.  I used to spend a few hours a week working, but since I "retired" I find myself hitting small junk shops more.   I almost have my second wheel going, where I have stuff on sale in three different towns and I can slide it from location to location. 

 

[ttfitz]

On 3/22/2024 at 3:48 PM, Upgrayedd2 said:

When reporting taxes from eBay sales, not sure if an non-business can take the following into consideration: (1) time spent listing items (2) fees to list items (3) time reading and responding to inquires (4) time, fuel, and costs to drive and purchase packing materials (5) time spent carefully packaging the items (6) time spent driving to FedEX/UPS/DHL/USPS and standing in line to ship the items (7) time/costs (use of printer and ink) to print out any statement which may go in the package (8) shipping insurance (9) vehicle insurance (not the entire cost, but a portion)

I believe item number "2" is something that can be taken into account, but none of the rest, you are right.

[jimjum12]

On 3/23/2024 at 1:53 AM, ttfitz said:

I believe item number "2" is something that can be taken into account, but none of the rest, you are right.

I'm not sure about this, but my accountant mentioned something that sounded like being able to claim and write yourself off, as an employee, IF you incorporate. That costs a bit more than a typical business license, $500 or more IIRC. I'm not sure what difference that would even make. GOD BLESS ...

-jimbo(a friend of jesus)

[ttfitz]

On 3/23/2024 at 8:47 AM, jimjum12 said:

On 3/23/2024 at 1:53 AM, ttfitz said:

I believe item number "2" is something that can be taken into account, but none of the rest, you are right.

I'm not sure about this, but my accountant mentioned something that sounded like being able to claim and write yourself off, as an employee, IF you incorporate. That costs a bit more than a typical business license, $500 or more IIRC. I'm not sure what difference that would even make. GOD BLESS ...

Perhaps, but if you read what I was responding to he said as a "non-business" so I took it as that.

Even then, what you would deduct from your business income would be what you, the employee, is paid at a salary - and then you'd have to pay taxes on that as part of your income. 

[jimjum12]

On 3/23/2024 at 6:33 PM, ttfitz said:

Perhaps, but if you read what I was responding to he said as a "non-business" so I took it as that.

Even then, what you would deduct from your business income would be what you, the employee, is paid at a salary - and then you'd have to pay taxes on that as part of your income. 

That's how I was reading it too ... seemed like a wash to me, but I've never gone that route. GOD BLESS ... 

-jimbo(a friend of jesus)