Selling My hobby collections or personal items (LLC/Tax question)?
I've been collecting sports cards as well as vintage items for over 20 years. I've decided to start selling on eBay, if possible but the new tax law implementations make things too cloudy for me (when tax reporting time comes..)...I have between 300 - 500 items to sell of different nature. I was thinking to start an LLC in conjunction with opening an eBay store so I can deduct the items purchase expenses at minimum. Reading about LLC though it seems i will not be able to deduct my purchase expenses because I bought the prior to starting the LLC..Any advice will be greatly appreciated..!!!
6 comments
mightymouse
·3 years agoI you have your receipts for your personal items you can use that as your adjusted base price if goods when you go to reselling them. Your LLC you can not add personal items for resell (I believe) but you can as a sole Proprietor. If you don't have receipts you can inventory the items at "fair market value" but I believe their is a time frame you have to have them for to do that. Check with an accountant.
caldreamer
·3 years agoYou do not need LLC. What you might need is a "business license" (I would check with your city/state to see if that is a requirement to "sell on EBAY").
luckythewinner
·3 years agoYou do not need an LLC to deduct expenses. Just declare yourself a Sole Proprietor and file a schedule C.
stainlessenginecovers
·3 years agoEverything @nobody*s_perfect stated is right on the money; follow that advice.
nobody*s_perfect
·3 years agoYou don't have to have a LLC to file as a business. The IRS has lots of helpful FAQs and other documents which might help you sort out your filing options. Here are a few to start with:
https://www.irs.gov/pub/taxpros/fs-2022-41.pdf
https://www.irs.gov/newsroom/tips-for-taxpayers-who-make-money-from-a-hobby
https://www.irs.gov/publications/p535
cdcostas
OP3 years agothx a bunch..really appreciate your help