Subject:
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Re: When a hobby becomes a business, cost basis, income taxes, etc.
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Newsgroups:
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lugnet.market.theory
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Date:
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Sat, 30 Sep 2000 00:22:16 GMT
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Viewed:
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549 times
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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 seller of
bricks? If not, I'd assume no further action needs to be taken.
The other thing is that you might have to be making a certain minimum amount
of $$$ per annum for something like this to actually qualify as income.
Cheers ...
Geoffrey Hyde
Ben Gatrelle <ben@yellowcastle.spam.com> wrote in message
news:G1o150.9Dn@lugnet.com...
> 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 is in Reply To:
 | | When a hobby becomes a business, cost basis, income taxes, etc.
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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 (...) (24 years ago, 29-Sep-00, to lugnet.market.buy-sell-trade, lugnet.market.auction, lugnet.market.theory)
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