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.
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: