Quote:
Originally Posted by GregMitch34
Let's say you by a card for $150 and sell it the next week for $200. Does that mean your "income" was $200? Or $50? Or separately you'd list $50 in a profit line? Or $150 as an "expense"? And would this apply to casual dealing, not a "business"?
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Along with Denny Walsh's comment, please allow me to add this:
In the scenario mentioned above, the $200 is gross revenue and the $150 is an expense. Both of these numbers should be reported (and source documents for both transactions would be very helpful.)
The net income of $50 will show on the line item for which the IRS Form instructs you to deduct one particular line from another particular line. So, all three numbers would be reported.
Hope this helps.
Best regards
Eric