Get your taxes done using TurboTax

I understand but note the difference.

 

If this is a business, you would prepare a Schedule C and profit would be subject to self-employment tax (as well as ordinary income tax).

 

If this is a hobby, you would report the income as miscellaneous income, which is subject to ordinary income tax rates.

 

If the items are capital assets in your hands, then you would report the gain as capital gain which would be subject to tax at the capital gains rate.

View solution in original post