Question about Taxes

[bhubbard387]

So, I have my shopping cart full and I think this is my last questions before I submit the order.

By no means do I hope to get rich off of this but I would like to sell a few bags here and there to recoup some costs. Selling on EBay shouldn't be an issue I believe but if I tack a name onto my product or sell to a local bait shop do I run into a position where I need to pay taxes?  I doubt my sales will exceed $100-150 a month.  I am interning at a Small Business Development center and I am getting a variety of answers on this question oddly enough.  I assume many of you sell a few baits or lures every once in a while to cover the cost of some of your supplies so I'd love to hear your stories.  I also understand it is probably different by state or even city but a broad understanding of this would be great!

Thanks everyone for all the help this far, I'm excited to get into this hobby and get creative with my baits.

[andrewlamberson]

If you sell your baits to anyone...you need to pay the Federal Excise Tax.  I think you will find it's a lot cheaper  and a whole lot less hassle ...to just give them away!

[Lamar]

  Welcome to the business world. This is a question you need to ask your accountant. Every state is different on how much it takes to make it a hobby and how much it takes to make it a business. If your going to sell over the internet then there will be a trail on how much you sold. It's no longer a garage sale that only you know about. Reportable income is taxable. I don't know of anyone that pays on garage sales.

[ctom]

Selling over the internet or having any advertising is going to bite you if you don't get set up for all of the taxes. If someone comes along and wants to buy a few baits I'll sell them some...cash or money order or check. Make them for yourself, family and close friends and you'll be fine.

[bhubbard387]

Great stuff to know, I can definitely cut back on my shopping cart then!