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Michelle currently conducts online auction transactions with the intention to make a profit, will the transactions qualify as trade or business? How will the transactions
Michelle currently conducts online auction transactions with the intention to make a profit, will the transactions qualify as trade or business? How will the transactions be taxed? CHOOSE ALL that apply. Michelle currently conducts online auction transactions with the intention to make a profit, will the transactions qualify as trade or business? How will the transactions be taxed? CHOOSE ALL that apply. The online auction transactions constitute a trade or business (that is if Michelle buys the items specifically for a business inventory with the intent to resell) Capital losses realized on the sale of personal items are disallowed. The activities of a trade or business are reported on Schedule C. Gains and losses would be reported on schedule D. The online auction transactions are not treated as resulting from a trade or business. The items purchased and subsequently resold could be viewed as investment items or personal assets. Any gains from the sale of the items would be taxed as ordinary income, and any losses as ordinary losses
Michelle currently conducts online auction transactions with the intention to make a profit, will the transactions qualify as trade or business? How will the transactions be taxed? CHOOSE ALL that apply.
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