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Strannix
USA Fan
Banana Republic
Member since Dec 2012
39170 posts

Say I spend 50 hours restoring an antique desk snd sell it on Ebay

If theyre treating every individual as a profit/loss corporation whats my time worth?

The the mileage to go pick it up? Supplies etc?
This post was edited on 1/13 at 1:21 pm


iAmBatman
USA Fan
The Batcave
Member since Mar 2011
11478 posts
 Online 

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

whats my time worth


you're time specifically isn't worth much, considering how much sky-screaming you do on the internet for free


SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
386038 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

whats my time worth

That's determined by the profit


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92
MMauler
Member since Jun 2013
16433 posts
 Online 

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

If theyre treating every individual as a profit/loss corporation whats my time worth?


Not a damn thing. Technically, that part should be ordinary income to you.


quote:

The the mileage to go pick it up? Supplies etc?


You can deduct these from the gross gain.


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LSUShock
LSU Fan
Kansas
Member since Jun 2014
4340 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
You’re a sole proprietor. Keep receipts of desk related costs and mileage. Deduct at end of year.
This post was edited on 1/13 at 4:07 pm


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Tiger Prawn
Member since Dec 2016
19066 posts
 Online 

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

If theyre treating every individual as a profit/loss corporation whats my time worth?

Your time is worth whatever profit you make after expenses. But your time isn't a deductible expense...its treated as income.

quote:

The the mileage to go pick it up? Supplies etc?
Keep mileage logs and receipts for your supplies and materials. That you can deduct.

If Ebay sends you a 1099 for $10,000 in goods sold on their platform for the year and you have receipts showing $3000 in materials/supplies expenses then you'll pay income tax on the $7000 in profit, minus any additional mileage deductions.


Strannix
USA Fan
Banana Republic
Member since Dec 2012
39170 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

you're time


At least I know basic grammar simp dumbass. Go melt with your vaccine regret posts.
This post was edited on 1/13 at 6:15 pm


iAmBatman
USA Fan
The Batcave
Member since Mar 2011
11478 posts
 Online 

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay


I’ve got no regrets baw.

Based on your posts, you’ve got more than your share


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111
BZ504
LSU Fan
Texas
Member since Oct 2005
6085 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
Biden is coming for you baw.


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texn
USA Fan
Pronouns: Y'All/Y'All's
Member since Nov 2019
1890 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

whats my time worth?


Your cannot add "your time" to your basis in the desk in order to reduce your gain from selling the desk.

If you hired someone for $10 per hour to work on the desk and they spent 20 hours on it, you could add the $200 that you spent on your basis (and they would have to report $200 taxable income for such payment).

But if you DIY, you didn't pay yourself anything, so nothing is added to basis. But the good news is that since you didn't pay yourself, you don't have to report the wage you didn't pay yourself.

quote:


The the mileage to go pick it up? Supplies etc?


Yes, deductible.


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LSUShock
LSU Fan
Kansas
Member since Jun 2014
4340 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
I would also suggest following this guy if you are going to do this more often. I use him for all my Resell related accounting.

LINK


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tigeraddict
USA Fan
Baton Rouge
Member since Mar 2007
9857 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
Labor is part of the profit. You are using ur labor to increase the value of the product. Only the materials can be deducted from the cost.

U make an extra $500 u are in essence paying your labor and u are going need to pay taxes on it


HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
41708 posts
 Online 

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

Keep mileage logs and receipts for your supplies and materials. That you can deduct.

If Ebay sends you a 1099 for $10,000 in goods sold on their platform for the year and you have receipts showing $3000 in materials/supplies expenses then you'll pay income tax on the $7000 in profit, minus any additional mileage deductions.



Are we to believe the IRS is actually going to enforce this petty shit?


molsusports
Ohio State Fan
Member since Jul 2004
32673 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

Keep mileage logs and receipts for your supplies and materials. That you can deduct.

If Ebay sends you a 1099 for $10,000 in goods sold on their platform for the year and you have receipts showing $3000 in materials/supplies expenses then you'll pay income tax on the $7000 in profit, minus any additional mileage deductions.


Are we to believe the IRS is actually going to enforce this petty shit?


If you are a regular person who makes a good faith effort to report income and pay taxes I doubt the typical person runs into the IRS in a significant way.

But the IRS automatically receives reports from professionally run businesses like eBay. If you don't report and document something you are essentially begging for them to come look at your taxes


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TigerDeBaiter
LSU Fan
Member since Dec 2010
9424 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
Well, how much did you sell it for?

Take that and subtract the cost to buy the table, transport it, and restorative supplies, and any other overhead you incurred.

And then divide by 50 if you want to know your hourly rate.

That is


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Tiger Prawn
Member since Dec 2016
19066 posts
 Online 

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

Are we to believe the IRS is actually going to enforce this petty shit?
Well Ebay is required to 1099 you if you have $600 or more in sales on their platform for the year. I doubt the IRS is going to go through your returns with a fine tooth comb to see which deductions you wrote off for expenses were legit, but just not reporting 1099 revenue on your tax return seems like a good way to invite an audit
This post was edited on 1/14 at 9:26 pm


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Kattail
Member since Aug 2020
2188 posts
 Online 

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

Are we to believe the IRS is actually going to enforce this petty shit?



Absolutely, they will adjust your tax and send you a bill if you do not report it


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shel311
Nicholls St. Fan
McKinney, Texas
Member since Aug 2004
89782 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

whats my time worth?
Net profit divided by 50?


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blueboxer1119
LSU Fan
Baton Rouge
Member since May 2013
4476 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

Labor is part of the profit. You are using ur labor to increase the value of the product. Only the materials can be deducted from the cost.


So if you hire the labor, you can deduct the cost.

If you are the labor, you can not deduct the cost? So your time and labor has no value?

How is your labor not an expense, similar to someone else being paid by you to do the same labor?


olgoi khorkhoi
Bucknell Fan
priapism survivor
Member since May 2011
12547 posts

re: Say I spend 50 hours restoring an antique desk snd sell it on Ebay
quote:

How is your labor not an expense, similar to someone else being paid by you to do the same labor?




It's only a question of who is going to pay taxes on that $200. If you sell the cabinet for $1000 and you did all the labor, you will be taxed on all of the profit. If you paid someone $200, you will still be taxed on all of your profit, which will be $200 less. The other person will be taxed on it if you submit a 1099, which you are not required to do if you paid that person less than $600 all year.


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