Have a Tax Question? Ask a Tax Expert
Thank you for using justanswer.
You have 2 different things going on here.
The first part is that you have sold antiques (that should have appreciated in value), and its that increase in value that you need to pay tax on.
The other part of your question deals with "bartering"
Anytime you trade something and you get something in return (such as you taking care of your gardner's books in return for landscaping)
You must include the Fair Market Value of the landscaping that you received
so does that mean i need a business license
and does that mean i ought to pay into social security too
The sale of the antiques (which I assume is something you only do occasionally) is reported on Sch D
that means you will only pay tax on the difference between what you purchased the antique for, and what you sold it for
There is no SE tax on either one of these transactions
your barter income would go to line 21 of the Federal 1040
okay...do i pay into ss at some point
not generally.........if you prepare your gardener's books on a regular basis, the IRS could consider that a business.
For now, all you need to do is show the value of the landscaping on line 21 as "barter income"
okay and in the future if i chose to expand how would i pay into ss
Yes, if you decide to do other people's books for money or service, then that would constitute a business, and you would have to pay SS tax at that point
what percentage is ss tax...30%
is boarding a business if from my property at my home or would that work the same way?
boarding (or renting) out part of your home is filed on
and there is no SS tax associated with rental income or expenses
do i need a business license for it?
no...but if you rent to a business,, THEY need a license to do business
okay...Thank you...you have been wonderful to answer these questions. I appreciate it and the peace of the knowledge as well.
You're most welcome
please feel free to ask for me by name if I can help you in the future
Have a very enjoyable rest of your evening.
Thank you, XXXXX XXXXX