Thanks again, Carl. Unfortunately, you're making my head swim! (Not your fault, though!)
Let me tell you about my situation. I'm in my mid-70's and I'm stone broke. in 2020 I decided to start selling my books and record collections online through eBay and other online services. I was surprised at how well I was doing but didn't have any idea how well I was really doing until PayPal sent me a 1099 for $30000+ dollars.
I'm not a business, nor a business man. Nor do I have the money higher an accountant (lots of COVID RELATed expenses including on going inability to truly breath.
So, I understand that because most things I sold I got more than I paid for that I made a profit and therefore I was a business and I have to file a schedule C.
But I don't have any formal organization (plust, if this is a business, it's the first year of this business) for example: I don't have a 'beginning inventory' I just have a spread sheet of ITEM NAME PRICE COST PROFIT/LOSS (AND some expenses)
I also do have lots of worthless collectibles due primarily to water damage. I had assumed that the cost of those items would be some sort of deduction rather than a nanipulation of intentory for COGS
IS THERE a simpler way for me to approach a simple informal 'business' or do I really have to act as though I'm a brick and mortar small business?
THanks
