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How many of you record dealers have a buisness

meatyogremeatyogre 2,080 Posts
edited November 2007 in Strut Central
Do you dudes without physical shops fly under the radar and file your earnings as "personal income", file as self employed or do you have a Tax ID and do business the proper way? LET ME KNOW

  Comments

  • RockadelicRockadelic Out Digging 13,993 Posts
    Do you dudes without physical shops fly under the radar and file your earnings as "personal income", file as self employed or do you have a Tax ID and do business the proper way? LET ME KNOW

    The governemnt is going to have to tap my phone to get this info!!!
  • tuneuptuneup 586 Posts
    totally straight above board here....

    honestly I think its just nuts to not file your taxes on this. getting busted for not paying them is just not worth it, so I operate totally above board. i know it doesn't sound like a bag o' giggles (and it isn't) but the alternative is just not worth going through.

    cheers...
  • RockadelicRockadelic Out Digging 13,993 Posts
    its just nuts to not file your taxes on this.
  • meatyogremeatyogre 2,080 Posts
    But do you guys have a business licence, or just claim you are self employed? There seems to be alot more benefits to actually getting a Tax ID # and having a sole proprietership, and being able to keep everything "contained" instead of having your personal accounts be intermingled with business affairs.
  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    Rich you have a day job, and what % of your income is through ebay? Probably doesn't make sense to file

    If you don't have a legitimate explanation of how you pay your rent you'd better file.

    The IRS WILL hit you and they do NOT play.
  • mylatencymylatency 10,475 Posts
    But do you guys have a business licence, or just claim you are self employed? There seems to be alot more benefits to actually getting a Tax ID # and having a sole proprietership, and being able to keep everything "contained" instead of having your personal accounts be intermingled with business affairs.


    In my opinion if you're making over $5K a year you better report it as personal income or file a separate entity. It doesn't matter how you approach it, just make it legit. I haven't incorporated but you can definitely write off a lot of stuff if you're reporting, like the space you work in, etc. Just peep out the tax forms...

    Having to take a hit on unreported income is straight foolish, no doubt.
  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    The IRS just asked me to explain what happened to $2,000 from 2005. They go back like Frankie Beverly and Maze.
  • tuneuptuneup 586 Posts
    Rich you have a day job, and what % of your income is through ebay? Probably doesn't make sense to file

    If you don't have a legitimate explanation of how you pay your rent you'd better file.

    The IRS WILL hit you and they do NOT play.


    this also holds for Revenue Canada...

    honestly mr. ogre...don't even consider not filing every penny you make off this business, as I would hate to see someone behind bars for selling unclaimed Boscoe.
  • meatyogremeatyogre 2,080 Posts
    haha, no I claimed last year (didn't the years before). The information I was hoping to obtain from this thread is whether it's smarter to just get a sole propietership to maintain these things rather than just claiming "self employment" at the end of the year.
  • williedynamitewilliedynamite 263 Posts
    I don't deal in records, but for what it's worth, my "business" finances are inextricably tied up in my personal finances. I have set up a number of LLCs for films and related projects that i've been working on. It's relatively cheap, pretty easy to do, and keeps the finances clean.
  • RockadelicRockadelic Out Digging 13,993 Posts
    Rich you have a day job, and what % of your income is through ebay? Probably doesn't make sense to file

    If you don't have a legitimate explanation of how you pay your rent you'd better file.

    The IRS WILL hit you and they do NOT play.

    I absolutely DO file....have a registered DBA and pay taxes on all my vinyl sales.

    I have too much to lose to play that game.

    I just thought it was funny that on a site where people fear wiretapping and other government intrusions that someone would ask for such personal and sensitive info.
  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    haha, no I claimed last year (didn't the years before). The information I was hoping to obtain from this thread is whether it's smarter to just get a sole propietership to maintain these things rather than just claiming "self employment" at the end of the year.

    It's easier for a number of reasons - your record keeping, your accountant's, and depending on how you're set up it will limit your tax exposure and your liability. But you should really talk to an accountant about that.
  • spelunkspelunk 3,400 Posts
    At what point dollar-wise should you claim income from selling records on your taxes? I brought in a little over $2000 this year but it's by no means a business or a way of supporting myself - just lets me buy more records.
  • jinx74jinx74 2,287 Posts
    you should really talk to an accountant about that.

    if youre selling anything (records, toys, etc) and getting money through paypal or any other traceable source then you should probably consult with an accountant on how you should go about writing things off. cause if youre not taking notes on where you bought something, how much it cost, the gas you used to get there, the money you used to advertise your sale (ebay, soulstrut, etc), the price it cost for your packaging, the amount you spent at the post shipping your item, etc... then youre Frickin' up and need an accountant cause those are all write-offs and it could save you money.

    no one wants to receive certified mail from the IRS. those envelopes are just evil.

    i just sat down with my mentor today and he told me everything i had missed collecting receipts for. dude is a true master when it comes to holding onto his money!
  • luckluck 4,077 Posts
    When I sold my father's comic book for nearly $4,000 (first and only sale on eBay), how should I report it?

    Should I report it?
  • meatyogremeatyogre 2,080 Posts
    When I sold my father's comic book for nearly $4,000 (first and only sale on eBay), how should I report it?

    Should I report it?

    yes, definitly do!
  • BrianFromWheatonBrianFromWheaton 52 Posts
    whats good meat? how's the fam?
  • luckluck 4,077 Posts
    When I sold my father's comic book for nearly $4,000 (first and only sale on eBay), how should I report it?

    Should I report it?

    yes, definitly do!

    Just as "Income?" I'm all hooked up with work for the W9.

    I made 0% profit on this book. I gave all the proceeds to my father.
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