Paypal and irs question--help pls!!

[shaunsteig]

an earlier poster mentioned using a schedule C, which is for a business. but what if you're buying/selling as a hobby -- could it then be considered as investments, in which case it'd be subject to capital gains rather than business income?

[Kenny Cole]

I don't sell on eBay, but I wonder why anyone who does would ever respond at all to this thread. Talk about a potential shipwreck . . . At least with respect to this issue, I would think the rule on a chatboard allegedly monitored by the FBI would be STFU.

[calvindog]

Gee. You think?

[GrayGhost]

Originally Posted by shaunsteig

an earlier poster mentioned using a schedule C, which is for a business. but what if you're buying/selling as a hobby -- could it then be considered as investments, in which case it'd be subject to capital gains rather than business income?

As I stated earlier, yes it could be. I mentioned all this in my post, plus will reply to a PM from the original poster w more advice.

Investments and Hobbies are also treated differently. Here is a link to an IRS article, describing Business and HObby Income and losses. Far as "investment", think of buying a rare card as an investment, then selling it, Its more of a "random transaction", and would be more likey a capital transaction, than doing this regularly, w hich would qualify as a business if the intention is to make a profit, or a "hobby" if you are just fooling around, or show consistent losses.

http://www.irs.gov/newsroom/article/...169490,00.html

[Kenny Cole]

Now Jeff, be nice. I was trying to be . . . .