amitymamaThe Attachment Parenting Community

sahmfiberaddict · 08-21-2004, 06:53 PM

All the trades, sales, etc... you do on this board.

Like for tax purposes?

I have a situation where they are asking me to come up with everything I sold (but not all of it was for business, I didn't even have an official biz until July of this year) I had mommie-care but I didn't make money of that site it was strictly voluntary. I gave away crocheted stuff and sold stuff for way under market but that was to get us through a crunch.

Is what we do here considered income? I figured it was like a garage sale of sorts. We mostly trade here but maybe I am just clueless and what I did was illegal. I sold things I crocheted here for money. it might have been better for me to just trade.

Any advice or wisdom on this one? PM please

treecitydiapers · 08-21-2004, 08:24 PM

I'm not sure if I would really count anything like that. I'm pretty sure garage sale stuff isn't income since you could say that it cost you x to buy the item and you only got y when you resold it... for a loss in $$... no profit in garage sales.

As for stuff on this board... if the items you were selling were $20 or less I would hardly worry about that for tax purposes, especially if you didn't have a business.

but.. if you get hauled off to jail for tax fraud remember that i'm no expert, lol... jk mama

sahmfiberaddict · 08-22-2004, 04:38 AM

~MamaCharly~ · 08-22-2004, 09:02 AM

I would have to think also that since we are not really making a profit off the things we sell since we originally paid more than what we are re-selling them for then I don't think it's profit, does that make sense.
I hope your situations works out ok.

Kathy · 08-22-2004, 09:43 AM

You have to sell of a certain amount. Here I think it is $600, but I am not really sure. I know I don't sell that much. I tend to give things away more often. Without getting postage back the majority of the time

oh well!

Kathy

Mamaselena · 08-22-2004, 11:25 AM

I think garage sale profits are allowed to go to $500 a year before you have to report it as income on taxes... might want to check with the irs website, though...

milk42 · 08-22-2004, 11:48 AM

So, just to clarify....

You created/made things, then posted them for sale, kept no record, and the IRS is angry? I think the only time you have to report YOUR income is if it is $600 or more, with all endeavors combined. Like if you made $400 here, and $200 with an online business, then you would have to report that I think.

It seems pretty fuzzy to me though, and again...don't call me if they haul you away, cuz I am not a tax attorney. I am not even qualified to do my OWN taxes and they are pretty basic!!

Wishing it goes well for you!
Amy

JenTwo · 08-22-2004, 12:15 PM

If it is something you made or bought for the purpose of reselling then you have to claim it over $X (don't know the amount). That includes trades. Actually, when you use a tax program or go to a CPA it will specifically ask you about trades you made with your business. This is assuming that you claim you own a business, some people don't (under the table). If you sell things for profit without claiming them and it's over X amount it is considered illegal.

Yes, I keep track of all trades and transactions that are for Brian's Woodshop- things DH and I have made or bought with the intent of reselling and making a profit... if I sell my dd's used shirt on here I am not going to keep track of it, it has nothing to do with our business and I'm not profiting from it.

I've seen many threads about this on here from the past few years. It's a PITB being the little person with a business because there are so many rules and reg's to follow and many small biz owners can't afford the consultation with someone who knows the in's and out's of tax laws.