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Garage Sales and Re-sells

I do Garage sales and Re-sell new items at the same time. Items that i bought for cheap and sold again for a profit. 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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1 Reply

Garage Sales and Re-sells

Hello DJ,

Yes you would need to report the income you made and pay taxes on it.

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 then 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 against making that income.

 

Here are a few helpful links

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...

https://turbotax.intuit.com/tax-tips/self-employment-taxes/4-tax-tips-for-money-making-hobbies/L89qz...

https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

 

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