I don't need to get a small business license or any wacky stuff like that to sell knives via Paypal in CA, do I?

Hashishiin

Hashishiin

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I'm talking a few sales here, a few hundred dollars. Will I be scrutinized, asked about "income" from this, asked from PayPal why I am selling things on G&S, etc? I am just trying to make sure what is what before I did anything and a Google search is inconclusive. As I mentioned, I am not starting an online knife store, just selling/trading a few casually. Is this going to present problems?
 
Hashishiin said:
I'm talking a few sales here, a few hundred dollars. Will I be scrutinized, asked about "income" from this, asked from PayPal why I am selling things on G&S, etc? I am just trying to make sure what is what before I did anything and a Google search is inconclusive. As I mentioned, I am not starting an online knife store, just selling/trading a few casually. Is this going to present problems?
Click to expand...
If you're just selling your own used items for less than you paid for them then, no. No taxes are due and no license is required.
*You are supposed to pay taxes on profit (if you sell a knife for more than you paid)
Now If you were buying knives weekly at the local swapmeet honeyhole and reselling them online (for a profit) then you would owe taxes

Good luck
cheers
 
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That means you have to keep track of what you pay for a knife when you buy it and what you get for same knife when you sell it.
After you get more than $600 in sales through paypal, you’ll get a 1099 form from them.
You have to show the paper work to your tax guy.
If you made a profit, you’ll be taxed on it.
I’m not clear what happens if you took a loss on it.
You shouldn’t be taxed on it, but can you file the loss as a deduction from overall income?
If you are gonna be taxed on profit, you should be able to write off the loss.
Anyone knows how that works?
 
tek77 said:
That means you have to keep track of what you pay for a knife when you buy it and what you get for same knife when you sell it.
After you get more than $600 in sales through paypal, you’ll get a 1099 form from them.
You have to show the paper work to your tax guy.
If you made a profit, you’ll be taxed on it.
I’m not clear what happens if you took a loss on it.
You shouldn’t be taxed on it, but can you file the loss as a deduction from overall income?
If you are gonna be taxed on profit, you should be able to write off the loss.
Anyone knows how that works?
Click to expand...
If you count it as hobby income, no. If it is business income, yes, but establishing that you are a business is kinda gray in the early period of it. Not clear to me how it works if you treat it as investment income.
 
You can stop accepting payment via PayPal, and resort to traditional methods like USPS MO, personal check (for upstanding members all positive feedback), or cash (if you can meet in person). It is simply not worth dealing with PayPal or any other electronic methods of payment anymore. Yes, they are super convenient, but I dislike the idea that I have to account for my hobby income and add more work to my tax filing, when there are other reasonable alternatives.
 
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