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(...) Are you treating your Lego sales like a business? You would do that on Schedule C, listing all your expenses and revenues. Otherwise, it's non-taxable money, just as the profit from a garage sale would be. In other words, don't tell Uncle Sam. (...) (21 years ago, 9-Apr-03, to lugnet.market.brickshops)
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| | Re: Brickshops and Taxes???
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I'm no tax expert, so take my advice with a grain of salt, but I believe Lego profits are taxable as capital gains if you don't treat your brickshop as a business (and I called the IRS to confirm this when I had the exact same question a few years (...) (21 years ago, 9-Apr-03, to lugnet.market.brickshops)
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| | Re: Brickshops and Taxes???
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they key word there is "profits" and that does not mean that if you buy something for $1 and sell it for $2, you made $1 in profit....the rules of accounting allow you to deduct a lot of stuff if you are running a business....such as the gas to (...) (21 years ago, 9-Apr-03, to lugnet.market.brickshops)
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| | Re: Brickshops and Taxes???
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(...) Sure, I mean I can write off all kinds of stuff. But what does money earned from something like this qualify as? Capital gains? Wages and tips? Other income on Schedule SE? I guess, I'd like to hear how other people are handling this. If you (...) (21 years ago, 9-Apr-03, to lugnet.market.brickshops)
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| | Re: Brickshops and Taxes???
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(...) I use Schedule C to calculate and report profit and (loss). If you use something like TurboTax, you'll also be led to stuff like calculating depreciation on items that are used in your business, as appropriate. This is not qualified tax advice (...) (21 years ago, 9-Apr-03, to lugnet.market.brickshops)
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| | Re: Brickshops and Taxes???
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(...) I'm not sure if this is applicable, but in my tax software, I am prompted for "hobby income" which can apparently be written off up to the level at which you invested in said hobby. So for example, if LEGO is your hobby and you spent $1,000 on (...) (21 years ago, 9-Apr-03, to lugnet.market.brickshops)
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| | Re: Brickshops and Taxes???
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(...) I would suggest business income, using the Schedule 'C'. You also need to use schedule 'SE', which is for social security tax. You enter the net profit (or loss) from your schedule 'C' on the schedule 'SE'. The really tricky part comes when (...) (21 years ago, 9-Apr-03, to lugnet.market.brickshops)
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| | Re: Brickshops and Taxes???
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(...) Of course, the laws for Tax in the UK are quite different. I'm certainly not an accoutant either, but I can comment on a few things. If fact, a great many people in the UK don't even have to do their tax return, but it's required if your tax (...) (21 years ago, 23-Apr-03, to lugnet.market.brickshops)
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