@mgjr73 wrote:
Agreed. One cannot just easily declare the activity as a business. As I understand it, you have to meet certain criteria, otherwise, it's a hobby in the IRS's eyes. Just opens a can of worms. As always, the regular taxpayer pays the price.
I think selling someone else's item on commission pretty much makes that side of it a business. I would keep the personal side separate and report it as capital sales. If you try and report the whole thing as a business, that wouldn't be right, and if you reported it all as a hobby, there's no easy way to deal with the $800 payout to the friend.
