Posted By:
James GalloWhen people deal in numbers under $10,000 that is because that is the amount when the IRS wants to knwoa bout it. It you go to the bank and cash a check for $10K they will make you fill out forms for the IRS.
I had this problem for several years before I went over to the full business end. If your making under $10,000 in profits, it likely won't make a difference and certainly won't put up a red flag.
Are you supposed to report it, sure but few people will.
I am going to be very interested to see the attempts at taxing internet trade. Should be interesting.
I would assume all the big auction houses report the income but remmeber they only make a small amount of the sale with what they charge the consingor and the buyer's premium. Also they likely have right offs like crazy so the net profit is going to be much less then the sale amount.
James G