Discussion Forum: Thread 326144 |
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| | Author: | tknorr | Posted: | Aug 25, 2022 14:33 | Subject: | Selling threshold for USA? | Viewed: | 111 times | Topic: | Selling | |
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| Hoping this isn't a dumb question...
I opened my store less than a month ago and have had a surprising amount of sales.
I'm just wondering if there are any thresholds I need to know about where
maybe the government or BL would no longer treat me as an independent seller,
but rather look at my sales as a small business. I'm only here to sell the
inventory that I have and not really looking to do this full time, although its
quite exciting when an order comes in. Should I be concerned if my total sales
hit a certain threshold?
Thanks,
Tim
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| | | | Author: | Brickitty | Posted: | Aug 25, 2022 14:58 | Subject: | Re: Selling threshold for USA? | Viewed: | 58 times | Topic: | Selling | |
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| In Selling, tknorr writes:
| Hoping this isn't a dumb question...
I opened my store less than a month ago and have had a surprising amount of sales.
I'm just wondering if there are any thresholds I need to know about where
maybe the government or BL would no longer treat me as an independent seller,
but rather look at my sales as a small business. I'm only here to sell the
inventory that I have and not really looking to do this full time, although its
quite exciting when an order comes in. Should I be concerned if my total sales
hit a certain threshold?
Thanks,
Tim
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Just make sure you include the income on your taxes. You don't need to register
as a business or use a special form or anything like that, just a normal 1040
will do, but PayPal will report your income independently if you receive more
than $600 in payments in a year. Which means the full payment amount, including
shipping charges and the sales tax that Bricklink auto-deducts from the payment.
So yes, you do need to report it.
However, if you want to deduct business expenses from that income (shipping costs,
handling costs, PayPal/Bricklink fees, auto-deducted sales tax, square footage
in your home that you use exclusively to sell, etc.), which you can still do
without registering as a business -- what you have is called a "sole propietorship"
-- you'll also need to fill out a Schedule C (Profit and Loss) form along
with your 1040. That's the only somewhat confusing part if you're not
an accountant -- I paid H&R Block to help me with it once, and now I can
easily do it on my own.
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