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+--- Thread: Taxes! (/showthread.php?tid=9821)
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Taxes! - WarLocK - 01-26-2006
Ok guys, I\'ve looked around for a few days now trying to figure out what I should do when claiming taxes this year. I\'ve been in the mask collecting, buying, selling, trading hobby for about 6 years now. I have never reported any of my paypal funds, or ebay activity before... but this year it crossed my mind. I mean yes, its a hobby but sometimes I do bring in more than I pay for a mask or two. I don\'t have a business like some of you guys, but I\'d still like to know how to go about this. Do any of you report your eBay sales and paypal income if you just do it as a hobby and not a business? I\'d say my cashflow (not extra income) was well over $15,000 for the year through paypal. Any info here would be appreciated. There are just so many unanswered questions and loopholes. Thanks in advance.
Taxes! - Cryptoys.com - 01-26-2006
Hey, if you have a real job than don\'t report your Paypal and stuff, that\'s a hobby. Like me , this is what I do for a living so I have to report all of it it\'s no longer a hobby. See the difference.
Taxes! - HERETIC - 01-26-2006
Yeah ,I never report....it\'s a side thing.....and quite frankly, I put out more money than I make doing it.
Taxes! - WarLocK - 01-26-2006
It is a side thing, but from time to time I\'ll sell a run of H1 pumpkins... knives, etc. just to make some extra cash. You guys don\'t think its worth reporting?
Taxes! - Cryptoys.com - 01-26-2006
No, I don\'t think it is. It\'s still a hobby to you. Trust me I know what\'s worth reporting and what isn\'t and that isn\'t.
Taxes! - HERETIC - 01-26-2006
I think there is a guideline for how much you have to make before you have to report it anyways.....it\'s like under 5 grand or something like that
Taxes! - WarLocK - 01-26-2006
Whether its a hobby or a business, it\'s still supposed to be reported. I came across this here at the IRS site. It\'s all BS if you ask me.
Is it a Business or a Hobby?
It is generally accepted that people prefer to make a living doing something they like. A hobby is an activity for which you do not expect to make a profit. If you do not carry on your business or investment activity to make a profit, there is a limit on the deductions you can take.
You must include on your return income from an activity from which you do not expect to make a profit. An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. You cannot use a loss from the activity to offset other income. Activities you do as a hobby, or mainly for sport or recreation, come under this limit. So does an investment activity intended only to produce tax losses for the investors.
The limit on not-for-profit losses applies to individuals, partnerships, estates trusts, and S corporations. For additional information on these entities, refer to business structures. It does not apply to corporations other than S corporations.
In determining whether you are carrying on an activity for profit, all the facts are taken into account. No one factor alone is decisive. Among the factors to consider are whether:
1-You carry on the activity in a business-like manner,
2-The time and effort you put into the activity indicate you intend to make it profitable,
3-You depend on income from the activity for your livelihood,
4-Your losses are due to circumstances beyond your control (or are normal in the start-up phase of your type of business),
5-You change your methods of operation in an attempt to improve profitability,
6-You, or your advisors, have the knowledge needed to carry on the activity as a successful business,
7-You were successful in making a profit in similar activities in the past,
8-The activity makes a profit in some years and the amount of profit it makes, and
9-You can expect to make a future profit from the appreciation of the assets used in the activity.
Taxes! - adam - 01-26-2006
I sure as hell am not going to pay taxes for my hobbies!
Taxes! - GBeninati - 01-26-2006
<span style=\'font-size:30pt;line-height:100%\'>FUCK TAXES!!!</span>
Taxes! - WarLocK - 01-26-2006
I know it\'s something we all want to just ignore and say F it!... but seriously guys I don\'t want the IRS knockin at my door someday b/c of this shat.