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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: FiguringItOut on October 12, 2015, 08:54:47 AM

Title: Selling on craigslist
Post by: FiguringItOut on October 12, 2015, 08:54:47 AM
Hi all,

Those of you who sell on craigslist, at what point is this becomes a declarable business?  I understand that selling one of two household items is not a business, but what is?  Is it dependent on volume (number of transactions)?  Frequency of transactions? 
What support do you need to support it?
Title: Re: Selling on craigslist
Post by: Retired To Win on October 12, 2015, 09:00:18 AM
Hi all,

Those of you who sell on craigslist, at what point is this becomes a declarable business?  I understand that selling one of two household items is not a business, but what is?  Is it dependent on volume (number of transactions)?  Frequency of transactions? 
What support do you need to support it?

I should say that as long as you are selling household stuff that you actually (usually?) paid more for than you are getting back, you don't have a business.  You're not making money, anyway.  If, on the other hand, you get into the groove of buying and selling so that you are ending up with more cash than it cost you to acquire stuff, then you are generating a profit and need to start worrying about your question.  How much to worry would depend on how much (gross) profit you would be generating.

Good luck.
Title: Re: Selling on craigslist
Post by: FIRE Artist on October 12, 2015, 09:03:03 AM
I think it is a business when you are showing a profit.  So, if you are reselling your own possessions which depreciate in value, you are not making money, but if you are scouring yard sales and reselling those items at a markup that covers your expenses and gives a profit, then it could be considered taxable income.  Likely your jurisdiction will have thresholds for which you must register as a business for sales tax purposes, instead of just claiming the profits as personal income.
Title: Re: Selling on craigslist
Post by: Syonyk on October 12, 2015, 12:31:34 PM
How does one make "selling on Craiglist" a business? o.O  Selling on eBay, I can understand, but Craigslist is filled with bums and lowballers.  "Hey, I saw you're asking $200 for that, but will you take $20?  I can make payments!!!"
Title: Re: Selling on craigslist
Post by: Kaikou on October 12, 2015, 01:39:38 PM
craigslist is a joke