No, you do not need to create an LLC. Side gig income is considered self-employment, but you can report it on Schedule C with your personal tax return. You can use your name and home address on Schedule C. And you will be able to deduct any related business expenses to reduce your taxes.
What self-employed expenses can I deduct?
How to enter a 1099-K for self employment?
Tips for E-bay Sellers - You can't deduct related expenses if you report the income as hobby income
You only need to report personal items that you sold if they were sold for more than what you originally paid. Most of the time, personally-owned stuff like cars, appliances, clothing, furniture, and other household items decrease in value after the initial purchase. If you later sell them, it's almost always for less than what you paid, so there's no gain or loss to report. The IRS won't let you deduct losses on personal items.
However, if you have more than $600 gross payments during a calendar year for the sale of goods from a third-party settlement organization (like eBay), you'll receive a Form 1099-K reporting your sales transactions. You're still required to report your net profits from the sales as income even if you don’t receive a Form 1099-K reporting your sales.
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