How I made over $20,000.00 selling knives this year!

Pharmagator said:
my wife and I have gone back and forth on the business license... I am keeping meticulous records of sales... and plan on paying taxes... just hoping to get by passing it off as 'selling off a hobby' and paying taxes on the profit from any sales... (not much) but the volume does look odd... well, it was this or I was going to get my own episode on 'Hoarders' (according to the wife)
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it is my understanding that when you exceed $20K, then you are no longer a hobbyist. However, if you sell below your documented costs, then you get a tax deduction!
 
22-rimfire said:
Business licenses are usually a State requirement and issued in the county you live in. Easy to get. You just have to pay taxes on your earnings.

Hobbyist? Probably doesn't need a license. It is generally a matter of scale. Pay Pal.... the revenue is reported over a certain amount and you take it from there. Tis why I don't want a Pay Pal account. I do have a Square account and that income is reported.

If I sold off my firearms, they would far exceed the 26K number. I'm a collector and it is time to slowly sell them off and give them good homes. As far as I know, since I am not a FFL, I don't need a business license for this.
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A buddy of mine that does a ton of PayPal business told me that you have to hit $20,000 AND 200 sales for it to matter. Most normal people aren't going to hit both requirements.
 
Pharmagator said:
my wife and I have gone back and forth on the business license... I am keeping meticulous records of sales... and plan on paying taxes... just hoping to get by passing it off as 'selling off a hobby' and paying taxes on the profit from any sales... (not much) but the volume does look odd... well, it was this or I was going to get my own episode on 'Hoarders' (according to the wife)
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I would avoid the business license unless you HAVE TO. In my case, I pay state & local taxes on gross sales, and Federal on the net. I know stores do it differently with inventory and so forth. I'm not a retail store.
 
Will this thread get closed like my "I don't like the word "choil" did yesterday?

My small collection has seen some shrink from giving a couple of nice birthday gifts to family this year. Granted, I'm not putting up anywhere close to the numbers as the OP.
 
Pharmagator said:
well, to be honest, I have a problem... (I AM a bit of a hoarder)
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I doubt it. When you have knife boxes stacked up blocking where you walk around your house, then call yourself a hoarder. I have been in houses where there were little trails to get from one room to another.
 
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