I have a booth in an antique mall, they collect and pay tax on sales & take 10%. Do I file tax records too?

Question

I have a booth in an antique mall, they collect and pay tax on sales & take 10%. Do I file tax records too?

Answer 1

You are not doing this for a profit motive. Therefore you are not self-employed and will not file Schedule C.



If you consider this a hobby, then you would report your revenues (all of it) on Line 21 of Form 1040. All expenses (original purchase price, sales commissions, sales tax, transportation to the store, etc.) would be deducted from Schedule A as a miscellaneous deduction subject to 2% of your adjusted gross income.



If you are just selling your household effects on a temporary basis at this location, then you do not treat this activity as self-employment or a hobby. Instead, you report any gain on the sale of each individual item on Schedule D. Losses are not deductible. These gains would be taxed as long-term capital gains with a maximum tax rate of 15%. unless an item is considered "collectible" such as an antique. In this case, capital gains are taxed at 28%.



It's too bad you are doing this at the antique mall, since sales of personal effects like at a garage sale are not usually subject to state sales tax.

Answer 2

No, it makes more sense for businesses to track purchases. Here's the thing, though. If you had a hot dog stand that teleported randomly from state to state, it would be a giant hassle to keep track of what you sold in which state. If you're selling widgets on the Internet, all that information is in the form the customer fills out. Which means that software can record, calculate, and even pay the appropriate proportion to the correct states, without any real additional hassle at all.

Answer 3

I have a booth in a flea market in Louisiana I pay a monthly booth rent. what form will i need to used to file my 2014 federal taxes?

Answer 4

Sales tax is separate from income tax. It sounds like maybe they are taking care of the sales tax - as them to be sure. If you're just selling stuff you already had, for less than you originally bought it for, you don't have income tax issues since you don't have a gain.

Answer 5

I too have 2 booths in an antique mall. I'm in Springfield Mo. When I last had my taxes done, I checked on this. There is a demarcation line on income. Anything less than $5000 IS considered a hobby, and you don't have to report it. I have to renew my sellers permit, or city license yearly. The owner retains 10%, and booth rental charges. So far, I haven't felt it necessary to do any extra paperwork on this. I wish you would of said where you were at, city wise.

Answer 6

If they paid they collected and paid the sales tax, then the only thing you should have left to worry about is if you made a profit, you will need to file on that as income.

Answer 7

ABSOLUTELY! Chances are the 10% that they take is for space rental but ALL income received by you needs to be reported to IRS and State in which you live in. ALWAYS good idea to keep ALL receipts for back up and keep tax records for 3 years!

Answer 8

Yes you should file a Schedule C to report the income and expenses from the operation of the business, if you make $400 or more. Anything less than $400 can be reported on the "other income" line on the 1040. Since you have to report the income you should report the expenses as well.

ALL income must be reported; there is no "it's a hobby" limit of $5,000.

If it is declared a hobby by the IRS you are allowed to deduct expenses up to the income you receive from the activity.