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Yes, selling old clothes and toys on eBay makes you a business. If you do it under your own name, you are a sole proprietorship. In the US, your business (the s
by dangrossman 14y ago
Yes, selling old clothes and toys on eBay makes you a business. If you do it under your own name, you are a sole proprietorship. In the US, your business (the sole proprietorship) will attach a Schedule C reporting its business income (the proceeds of those eBay sales) with your federal tax return. If you sold $200k worth of old toys, PayPal would ensure the IRS knows you owe taxes as it'd report the income on a Form 1099-K, as they're required to do for any account holder with over $20k in annual sales.