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Questions regarding selling items online?
Hello,
So I want to start selling my stuff online, but there is a question that I have that kind of prevents me from continuing with this.
How would I report the sales tax on my taxes?
So I am from New York and I was looking online on trying to figure out how I would report selling items on my taxes? I know If I sell an item for a loss then I don't have to report it due to not profiting off of it. But, then I see that there is a difference between having to either label myself as a business or labeling this as a hobby?
So I am just confused on how I am supposed to do this... Is there any way of reporting this on my own personal taxes for the following year? (I already reported my taxes for the past year) Or do I have to report this as a hobby or am I going to start this as a business?
I am generally confused on how I am supposed to do this. If someone could explain to me on what I need to do that would be much appreciated!
Thank you for your time,
Greg
3 Answers
- EvaLv 71 year agoFavorite Answer
If you are selling your personal property on line, there is no sales tax or income tax reporting as that property is usually sold at a loss. You don't have a business. If you are making or buying things to sell, that's completely different. You have to apply to the state to become a "sales tax vendor" and collect sales tax on any sales you make within the state. You report your income and expenses on Schedule C of your tax return. If you are contemplating going into business, find your local SBA office, small business development center, or SCORE chapter. You can also go on the SBA website for guidance.
- CarVolunteerLv 61 year ago
When you say you are selling our "stuff", what do you mean? Are you in effect having an online garage selling things you no longer use? Then indeed you don't report it and no sales tax. If you are selling things you make or buy for resale, the rules are different and the other person's post applies.
- Anonymous1 year ago
Sales tax is collected from the customer (when applicable) and remitted to the appropriate state.
You report your business income on IRS form 1040 Schedule C. You figure your self-employment tax on IRS form 1040 Schedule SE.