Taxes and Auction Site Question

[x2drich2000]

Originally Posted by D. Bergin

Let me first say I an NOT an accountant.

.......but if you are a collector, dealer, or both, who buys and sells out of their collection on a regular basis, it might be worthwhile to declare/register yourself as a business (doesn't matter if it's considered a really small business), get a sales and use tax number from your state, keep track of all your sales, expenses and purchases, and file a Schedule C with your taxes, while taking all legitimate business deductions available to you.

Sounds like a lot of work, but will probably save you a lot of money over the standard hobby income calculations.

This seems to have been glanced over here and something I've heard recommended for years. I've never considered my purchases/sales in the past to be a true business so never bothered really considering it, but as my sales have started picking up in both volume and dollar amount, I've started to get more curious about it. Anyone willing to comment on the legality of doing so and, if legal, would it really be worth the effort?