[GNC] Another "multi-account" logical issue - any advice on how to register this?

[Chris Miller]

Hi Bruce,

> I'm going to have to read that publication. I am selling household items on
> eBay and think I would be considered a hobbiest. Sales will be less than 4k
> this year - and only if I were to sell a lot in 4th quarter. Can anyone
> recommend a VERY introductory guide to hobby and small business taxes in
> the US? I always use a "tax guy" in March, but if I can read and learn and
> avoid doing something incredibly short-sighted, that would be a good start

Create an asset account called "Bruce's Bargains". Everything you plan to sell, goes into this account. If it is something that you already own, then you add it with an amount you think is correct and that money as attributed to some Equity account. I would create a new equity account called, "Bruce's Beginning". It amounts to your investment in the activity. When you buy something for re-sale, it is entered in the asset account at the price you paid, plus a split for any of the expenses you incurred to ship it, or fix it, or fetch it, or ... These are increases to the value of the item. When  you sell an item you "write it off", by recording the sale price as a new split in the original transaction and a final split entry to make the balance zero, This final split item is either "Gain on Sale" or "Loss on Sale" and it goes to "Bruce's Bargains - Income".
-- 
Chris.