Do you claim the $ you make off selling your ponies on your taxes?

[MidnightFireflies]

Question: My brother's g/f (who I love dearly) is going to school for accounting. During this tax season she has been freaking me out about claiming any money I made off selling ANYTHING really on ebay or using my paypal account to accept money from people on the pony websites who buy anything I have for sale. (OH THE HORROR!) She wants me to create an inventory of anything I plan on selling and track how much I paid for it, any fees I incurred, profit, shipping costs etc...

Do you sellers claim the money you make on selling your pony/items on your taxes? If so how do you keep track of all that? Any suggestions? Or do you not do it? How does that work, or not work? Suggestions? Experiences?

Thanks ahead of time!

[scarletjul]

I never have; I don't think I make enough money in pony sales to where it would matter on my taxes.

[lose]

i dont know about other countries but here in Australia you only have to claim if it is over a certin amount of money. i do know that if it is over that certin amount and you do not claim it you could be in for some trouble.

[Ren-Ren]

Paypal will report to the IRS if you have 200 or more transactions AND are paid $20,000 or more (both have to be true, from what I understand). If it's under that then I'm guessing you're okay. For now, at least. As the government begins to crack down on online sales in the future this could change.

[Oneleo1]

There is never enough in my sales for me to consider it income ($200-300 a year if I am lucky) so no, I don't claim anything I make selling ponies

[PonySeeker128]

Good question midnightfireflies, thanks for asking that!

[Firebyrd]

A few years back I looked into this, and as I recall the cutoff for something being considered a "hobby" was $400 or $500.   Very few people make enough from ponies to have to worry about it.  Even when I've been big into selling them, my actual profit was probably only a few hundred after paying for the big lots I got.  Now, this was four or five years ago, so with all the attempts to break into the money that internet sales are getting things could be different, but if you're just selling a couple of ponies here and there you should be fine.

[kittybethy]

I never have; I don't think I make enough money in pony sales to where it would matter on my taxes.

 Same here!

[hlbmlp]

i dont know about other places but in PA you have to have at least 600$ in profit and you have to have been selling for multiple years as a "business".  I claim my etsy, because i have to, but the ponies and other things... no.  I don't sell for a business, i sell to clean stuff out, make a little money to pay for school and art supplies.  If you were to set up say an etsy, and buy and resell my little ponies and other toys then yes you should be taxed for it... but here... it's like a big garage sale, and no one has garage sale moolah on their taxes!

[lovesbabysquirmy]

Yep, check your state's local tax laws regarding the amount you can earn without claiming it. 

[hathorcat]

All I do is loose money when I sell ponies so I dont think this is something to worry about...but in most countries there is a limit for what is termed a "hobby" and even higher amounts than the limit can be accepted in different circumstances because there certainly are collectors in different hobbies who when selling items will make more than 500$ - when you consider high end collections.

[naylastar]

Definitely not. I don't make nearly enough for that. In the UK, I know you have to be above a certain level and I'm nowhere near that. I think it's something like £14000, way over what pony sales will put me at.

[dippindot]

Here in Tennessee you don't have to claim it unless you make $3000 or more in a year. 

[Repulsive333]

I actually looked this up a few weeks ago... lol... cause i was super worried.
It has to be $200 PROFIT... not how much you get the ponies/whatever for, it is how much you are making off the product. So if you spend $5 and sell for $7... your profit is $2...

[Ginger]

I sold three ponies last year for less than I originally paid for them so.... no.
The stuff I sell online are used things I already paid for, paid sales tax on, and most often sold for less than orginally paid so nothing was "made". It's basically a garage sale.