CHARLOTTE – It will be harder to hide your online sales income from the IRS!
So, Let’s Get To It…
If you are selling products online to make a profit that’s more than a hobby then you would be considered a small business owner. Let’s say you go around to different Yard sales to buy clothes and other items and sell them online with the mindset of making a profit. That system will classify you as a small business owner.
As Small Business Owners, online entities, or merchant account, would not issue what is known as a 1009-K if your business earned less than $20,000 in online business transaction income, but starting next year that rule has changed. If your online business transactions generate a minimum of $600 then a 1099-K will be issued from your merchant account. So, hiding that $19,999 in online sales under your mattress will be a thing of the past.
Here is the best part, all of those purchases at the various Yard Sales can be written off on your taxes using a Schedule C or Trail Balance Sheet as Supplies or Expenses to your newly formed LLC company as you intend to make a profit from the purchases. Welcome to Small Business Ownership!!
For more information contact Mays Concepts, LLC at (704) 526-0307 or email us at email@example.com
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