Diane Posted March 15, 2009 Report Share Posted March 15, 2009 Client buys sports tickets, then sells them over Ebay for a profit. I've been putting these sales on Schedule D as a short term gain. I felt that this created an investment sale, and not a self employment transaction since he is not in the business of selling sports tickets and has a regular job. He never makes enough to create any self employment tax and it's not a regular thing, although he's done it for a few years now. What is the right way to handle these sales? Diane Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 15, 2009 Report Share Posted March 15, 2009 Client buys sports tickets, then sells them over Ebay for a profit. I've been putting these sales on Schedule D as a short term gain. I felt that this created an investment sale, and not a self employment transaction since he is not in the business of selling sports tickets and has a regular job. He never makes enough to create any self employment tax and it's not a regular thing, although he's done it for a few years now. What is the right way to handle these sales? Diane I see this as a business because there is a cost of doing business (Ebay Fees, Shipping and Handling Fees, Paypal Fee), after you take those costs in consideration + the cost of tickets, less whatever he gets for them is his profit. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 16, 2009 Report Share Posted March 16, 2009 If he is doing this from a profit motive, I too would see it as a business. If he does not have a profit motive (maybe he is buying the tickets to use some personally and sell the others to finance his attendance at sporting events?) then it would be a hobby, and expenses might not be deductible. And I really think he is trying to make money from the sound of what you posted. Quote Link to comment Share on other sites More sharing options...
Diane Posted March 16, 2009 Author Report Share Posted March 16, 2009 Thanks for the replies. I probably will enter this on a Schedule C. Diane Quote Link to comment Share on other sites More sharing options...
Virtual Managed Solutions Posted March 16, 2009 Report Share Posted March 16, 2009 eBay for example: How much money do you have to make to be considered being in business for yourself? What if you are selling on eBay as a hobby - you just love doing it, it's fun, etc etc, but you find yourself making a substantial amount every week? Quote Link to comment Share on other sites More sharing options...
Bart Posted March 16, 2009 Report Share Posted March 16, 2009 eBay for example: How much money do you have to make to be considered being in business for yourself? What if you are selling on eBay as a hobby - you just love doing it, it's fun, etc etc, but you find yourself making a substantial amount every week? It is not the amount of money you make that determines if you are in business. If you have a profit motive and conduct your affairs in a businesslike manner then you are in business. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 17, 2009 Report Share Posted March 17, 2009 And being a hobby does not mean that you don't have to report the income - it only limits the expenses that you can deduct and how you deduct them. All income, whether cash or barter, is reportable. Quote Link to comment Share on other sites More sharing options...
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