ok so these all kinda go together but are difrent too . I was told by a local tax person that you can no longer claim your cost of selling items on we'll say ebay , there saying the new law did away with you as a person claiming cost of item , shipping matterial ect. unless your a LLC business ? so your total in sales 601.00 and higher is taxed ? what is the tax % and is this both state and Fed ?
next part if I do surveys for companys and they give me items I am being told you have to pay tax on those items at full retail value ?
dose this include free digital games if so ?
I don't run a business but in the past have done some sales and surveys i just don't want to end up oweing a ton in taxes when i am not realy making anything example I bought a camera for 1300.00 a couple years ago was going to sell it this year for 800-900 but after hearing this have not . any help would be great thanks
You'll need to sign in or create an account to connect with an expert.
Hey what do i have to do to get an answer here?
@isazisa Hi! There are over 100 questions in our queue right now, so it takes some time for our Experts to answer. Some answers take longer than others.
Because you replied to your own question, it was no longer in their "unanswered" list, so I'll make sure someone takes a look! 👍
I don't know if you will see this but I waited an hour with no responce be for i put my coment in, its now been 4 hours and still no answer I get its busy but lets be real
Dear isazisa,
Thank you for your patience! The local advice you received is correct for hobby expenses. Under the new tax reform, you are required to report hobby income on Schedule I, Line 8 and expenses related to that income are no longer allowed, not even home office. You'd be paying ordinary tax rate depending on your income tax bracket income tax bracket.
However, if you are in it for profit, you may consider yourself a sole proprietor (business). In that case, you can report income and expenses on Schedule C, you'll be subject to self-employment taxes on the net profit, if any. You don't have to register the business as a limited liability company to file a Schedule C, but if you like to limit your liability (in case someone sues you) then you should consider it to protect your personal assets.
Regarding the items you receive in exchange for surveys, those are considered barter income and it is taxable income at fair market value, here's a resource for you bartering income.
Overall, you have to ask yourself when you sell these items or any other items, am I doing this as a hobby or as a business. Here's an IRS resource that will help you hobby vs business.
Please let us know if you need anything else.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
MeltedIceCream
New Member
taxhelppls89
Level 1
InvisibleCrow
Level 1
cat1221
Level 1
mannyest
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.