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Posted to .buy-sell-trade and .auctions, FU set to market.theory
I notice that the trend is definitely toward selling parts rather than sets.
In the past I have sold, mostly on eBay, mostly complete sets. I have
purchased a selection of sets on clearance recently and have been planning on
parting them out for sale on brickbay. I used to very carefully keep track of
the cost and quantity of every set I bought. Some months the profit from the
sets I sold would cover the cost of the sets I've kept. Other months I would
spend a whole lot more than I made from sales. Other months I would actually
make more than I purchased and kept. I think a lot of people auction and sell
their sets and parts to offset the ones they keep for themselves. No new news
here. My question is about turning this "hobby" into a business.
If I buy a 100 piece set for $10 keep five or ten pieces, sell the rest of the
pieces for $15, do I say I made a profit of $5 (assuming no auctioning fees,
etc.). Do I need to adjust the cost figure for the pieces I kept? I'm not even
sure how to ask the questions in my mind.
I guess what it comes down to is does anyone know how much money you
can "make" at a hobby before the IRS requires you to claim it as income? Or
conversely if you say this is a business and you are trying to make a profit,
what do you do about the pieces and/or sets you keep? Do you include this as a
Research and development cost? I guess I need to talk to a CPA or bookkeeper
about what I can and cannot do if I want to jump into this selling thing with
both feet, or just one foot.
This is too long already so...
Any comments would be appreciated
BEN GATRELLE
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Message has 6 Replies:
 | | Re: When a hobby becomes a business, cost basis, income taxes, etc.
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| Ben, If you have a job already, and you earn more than x (I think it is 500.00),any and all income is considered income, if i ti s not a business, including E-Bay, Brickbay, etc. You have to pay both state, national, and maybe local tax, depending (...) (24 years ago, 29-Sep-00, to lugnet.market.theory)
| | | Re: When a hobby becomes a business, cost basis, income taxes, etc.
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| Actually, the first thing to do is to see if what you're doing qualifies itself as income. If it is regular, if you regularly get money from doing this, if you consider this work, etc. Basically, are you going into this with the intent of being a (...) (24 years ago, 30-Sep-00, to lugnet.market.theory)
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