Hi there,
I have seen many articles about the amount of home-based online businesses that are started up each month and there are many more articles about how big Facebook and other social platforms are getting and how people are making money on them. The problem is there is sometimes a blur between what types of online behavior are taxable and what are not.
Online Garage Sales
For example, if you are having an online garage sale, like selling some items on Craigslist or other such sites, you usually do not have to report sales. This is usually true if you sold the item for less than your cost.
Selling Appreciated Assets
However, if you are selling appreciated assets like paintings, antiques or collectibles and you are selling the item for more than your cost, you usually have to report the transaction as a reportable gain.
Online Businesses or Reoccurring Sales
There are also individuals who either have an online business or have taken the garage sale theory to the next step by buying and reselling items. Any time you may be seen as running a business, especially with how blurry the line is online, you should contact a Reno Certified Public Accountant.
The last thing you want to do is get into tax trouble because of your actions online. Remember when you are making money you should always think about the potential tax implications. When in doubt, ask a Reno CPA about the situation. They will be able to tell you whether you owe taxes and, if so, they will likely be able to help you find deductions.
If you have further questions about this topic you can read more on the Internal Revenue Services’ Website: http://www.irs.gov/businesses/small/industries/article/0,,id=209314,00.html or you can contact Evans Nelson & Company CPAs today. (Contact us online or call 775-825-6008)
Reno’s Best CPA,
Tim Nelson