In 2018 I mostly sold used bike parts on eBay that I had which totaled around $3000 for the year. I'm not sure if I should consider this a hobby or business when I file my taxes. Most of the bike parts I bought I didn't have the intention to sell them when I bought them but have not used them in a while so I figured I would get some extra cash. I have not gotten any tax forms from eBay or Paypal so would it be best to file this as a hobby or a business with the IRS?
Thank you in advance.
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It depends, please see the list below and apply them to your situation. Essentially, if you intend to continue this to earn extra money (profit motive), the IRS will likely consider it a business. If you are doing it solely to clear out clutter, it would be a hobby. This IRS Article has some tips about Hobby or Business?
Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit. In order to make this determination, taxpayers should consider the following factors:
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