Question

Craigslist business, how do you file?

Forum|Forum|6 years ago
May 14, 2020
2 replies
0 views

Well, I just been buying and selling stuff off craigslist and eBay I buy or get for free for like a year. I have no receipts, i never did taxes before, or had to, my uncle use to do it. Thought it would be ez to do, but they talking about receipts and 1090 forms?? What is easiest way to do for free and what forms? Thanks for help

Critter

Employee

If you are new to being self employed, are not incorporated or in a partnership and are acting as your own bookkeeper and tax preparer you need to get educated ....

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income. So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

To file for free you can see if any of the IRS FREE FILE OPTIONS can be used : https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

U

userzero01Author

Well, thing is I kept zero records, but know how much profit i made, and how much I spent on items to make that profit.
I spend hours looking and links just made it more confusing than before 😞 Somebody has had to buy and sell off craigslist and knows what to do what is right form.

B

BillM223

Critter is right that you are required by the IRS to keep detailed records. In an audit, any deductions that you cannot substantiate are likely to be disallowed.

It is time for you to

1. start keeping records of each purchase and sale, and any other expenses you incurred as part of the business, and

2. build a set of records for last year based on what you know: "but know how much profit i made, and how much I spent on items to make that profit. "

Note that many things in a Schedule C may not apply to you, so enter what you know.

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