Re: Casual seller. Not a business or a hobby.

Still need an answer please on my reply to this. Casual seller. Not a business or a hobby.

I sell my items on occasion, such as Disney collectibles or dolls. I’m not a business. And I don’t qualify as a hobby. How are such earnings reported. I don’t have receipts for the items I sell to prove whether so make a profit.

posted

Hi Katrinakitty,

The money received is reportable to you as income. If you have a profit motive, meaning you are working to make extra money for doing other things, go ahead and treat it as self-employed income and you can take the expenses or the cost of doing your business. If the profit is less than $400, you'll only pay regular tax and would not pay any self-employed taxes.

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I’m not in a trade or business, and it’s my understanding that the IRS allows people to report 1099K income as non self-employed income under investment income for personal items sold not associated with a trade or business using TurboTax Premier. Please advise.