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Garage Sales and Resell Items
I do Garage sales and Resell new items at the same time these year about little over $2500 made by people sending through Zelle
Would that effect my taxes? do i have to report it? im sure i will be getting a 1099-K from Zelle
Thank You!
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Self employed
Hello
There are 2 ways to report the income.
1. If it is a hobby then the income is reported on schedule 1 for the full amount of the 1099 no expenses allowed to be taken
2. If it is a business the it would be reported on a schedule C (self employed income). You would report the 1099 as income and then deduct the expenses you have againist making that income.
Here are a few helpful links
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Self employed
A lot of ebay sellers are just selling old stuff and don't consider it a business, hence falls under "hobby" as you described it. Selling on ebay has fees and shipping costs involved. So if we get a 1099K report with $2000 gross but in reality only netted $1500, how do we account for that on our tax forms if we are not allowed to deduct expenses?
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Self employed
Before 2018 you were able to write off the expenses on schedule A but from 2018 forward you can't deduct any expenses and pay tax on the gross amount
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