I've been on SSDI for 8 years for a neurological disorder. This is my only income.
Last year (2012) I started dabbling with selling on Ebay. Not regularly and ended up just under $4000 gross sales and showing a loss of at least $1000. Approx 25 sales.
The paper trail is; purchase from auction site (not ebay) using my personal CC. Selling on ebay with payments going thru Paypal and goi ng into my personal checking acct. then paying my CC with that.
time this year I was educated abouit the reporting of sales from ebay and filing Sch. C, hobby/ business etc ... . I am at $10k in Gross sales and showing a loss of at least $1700 on 62 sales.
I am going to stop selling on ebay at this time.
-Not worth the hassle dealing with the Sch. C
- Can't make money between shipping/ebay/paypal fees
- Sometimes I can't walk to drop off packages.
My question (s)...
Am I able to call it a hobby and would that benefit me?
Should I amend 2012 with a Sch. C and go into 2013 carrying the loss over and dissolving the :"business" ?
Shouild I ignore 2012 and and just file Sch. C for 2013?
Should I just stop and not file any Sch. C's?
and what penalty for not filing a Sch. C even though they are losses?