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<p>[QUOTE="Good Cents, post: 3712983, member: 100720"]You do not need to "have a business". Technically, if you decide to do a Garage Sale and buy lots of disposable supplies such as plastic tarps to lay down on the ground on which to place the goods you are selling, disposable bins to store the goods you are selling, signs to advertise your sale, advertising fees for a local newspaper, paper fliers to hand out on the street, paying someone help with carrying heavy items, etc, and ALL your expenses come out to be $600, but you only make $589 from the Garage Sale because it rained all weekend and very few people showed up, then you can list both your Income AND Expenses on an IRS Schedule C and declare a loss for the year of $11. If you do this regularly, say every year, you cannot declare a loss more than once every 3 years. But there is no minimum $ amount on an IRS Schedule C which would prevent you from using it if you in fact have losses on your sales after all expenses and if you have the receipts and paperwork to back it all up.</p><p><br /></p><p>The IRS rule is that you cannot declare a loss on your Schedule C income more than once every 3 years. So I wouldn't recommend declaring a loss more than once every 3 years. But there is no reason you can't declare your loss once every 3 years if you in fact have the paperwork to back it up. eBay fees, Paypal fees, Shipping fees are all paperwork that you can keep in your computer or print out for your records. If you have the receipts from your packaging costs and most importantly your purchases of the items which you are selling, there is no reason to NOT declare that loss once every 3 years. Again, there is no "Minimum $ Amount" which determines if you have a business or not. If you declare a loss EVERY year, THEN the IRS says that you have a hobby and not a business. So go by the IRS rules and don't declare the income OR the losses for those other 2 years in-between.</p><p><br /></p><p>If you pay someone to do your tax return, hand them a nice little list with the expense TYPE and the TOTAL for that expense. And give him/her only one Total Amount for Income (Sales). For Example: </p><p><br /></p><p>Total Income: $785</p><p>Purchases (Goods): $395</p><p>Shipping Charges: $181</p><p>Ebay & Paypal Fees: $162</p><p>Packaging Costs: $58</p><p><br /></p><p>If you do that and tell your tax preparer that you sold stuff on eBay and these are your legit numbers, there is no reason your tax preparer should NOT file the IRS Schedule C for you as long as you are not declaring a loss more than once every 3 years. </p><p><br /></p><p>Don't fear the IRS if you have the paperwork to back up your claims. Take the deductions that are coming to you that you are allowed to take.[/QUOTE]</p><p><br /></p>
[QUOTE="Good Cents, post: 3712983, member: 100720"]You do not need to "have a business". Technically, if you decide to do a Garage Sale and buy lots of disposable supplies such as plastic tarps to lay down on the ground on which to place the goods you are selling, disposable bins to store the goods you are selling, signs to advertise your sale, advertising fees for a local newspaper, paper fliers to hand out on the street, paying someone help with carrying heavy items, etc, and ALL your expenses come out to be $600, but you only make $589 from the Garage Sale because it rained all weekend and very few people showed up, then you can list both your Income AND Expenses on an IRS Schedule C and declare a loss for the year of $11. If you do this regularly, say every year, you cannot declare a loss more than once every 3 years. But there is no minimum $ amount on an IRS Schedule C which would prevent you from using it if you in fact have losses on your sales after all expenses and if you have the receipts and paperwork to back it all up. The IRS rule is that you cannot declare a loss on your Schedule C income more than once every 3 years. So I wouldn't recommend declaring a loss more than once every 3 years. But there is no reason you can't declare your loss once every 3 years if you in fact have the paperwork to back it up. eBay fees, Paypal fees, Shipping fees are all paperwork that you can keep in your computer or print out for your records. If you have the receipts from your packaging costs and most importantly your purchases of the items which you are selling, there is no reason to NOT declare that loss once every 3 years. Again, there is no "Minimum $ Amount" which determines if you have a business or not. If you declare a loss EVERY year, THEN the IRS says that you have a hobby and not a business. So go by the IRS rules and don't declare the income OR the losses for those other 2 years in-between. If you pay someone to do your tax return, hand them a nice little list with the expense TYPE and the TOTAL for that expense. And give him/her only one Total Amount for Income (Sales). For Example: Total Income: $785 Purchases (Goods): $395 Shipping Charges: $181 Ebay & Paypal Fees: $162 Packaging Costs: $58 If you do that and tell your tax preparer that you sold stuff on eBay and these are your legit numbers, there is no reason your tax preparer should NOT file the IRS Schedule C for you as long as you are not declaring a loss more than once every 3 years. Don't fear the IRS if you have the paperwork to back up your claims. Take the deductions that are coming to you that you are allowed to take.[/QUOTE]
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