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Business & farm
"...included my yard sale items (non taxable items).?
So what makes the income from the sale of personal items not taxable? With rare exception (such as disability income) all income from all sources is reportable and taxable on your tax return, or the business tax return if separate from the personal tax return.
" I don't have any records"
Then unfortunately, you lose and have to pay the IRS whatever they say you owe. Three rules to remember when dealing with the IRS.
1 - You are guilty until proven innocent
2 - The burden of proof is on the accused (that's you), and not the accuser
3 - If it's not in writing, then it did not occur.
I'm sorry you had to learn this the hard (and probably expensive) way, but based on the content of your post the IRS is 100% in their rights and you have nothing to prove otherwise. This is exactly why you keep business stuff physically separate from personal stuff *no* *matter* *what*. Now in addition to the regular income tax the business pays on profits, the business also has to pay the additional 15.3% self-employment tax on that income. Convenience is not free. They need to pay with cash for personal or "garage sale" items, or don't make the sale.
So what makes the income from the sale of personal items not taxable? With rare exception (such as disability income) all income from all sources is reportable and taxable on your tax return, or the business tax return if separate from the personal tax return.
" I don't have any records"
Then unfortunately, you lose and have to pay the IRS whatever they say you owe. Three rules to remember when dealing with the IRS.
1 - You are guilty until proven innocent
2 - The burden of proof is on the accused (that's you), and not the accuser
3 - If it's not in writing, then it did not occur.
I'm sorry you had to learn this the hard (and probably expensive) way, but based on the content of your post the IRS is 100% in their rights and you have nothing to prove otherwise. This is exactly why you keep business stuff physically separate from personal stuff *no* *matter* *what*. Now in addition to the regular income tax the business pays on profits, the business also has to pay the additional 15.3% self-employment tax on that income. Convenience is not free. They need to pay with cash for personal or "garage sale" items, or don't make the sale.
‎June 6, 2019
5:51 AM