I think people are overcomplicating this. If you're just casually trading skins and occasionally making a small profit, it's hobby income. Report it on Line 8z of Schedule 1 as "Other Income" and call it a day. Only need Schedule C if you're truly running this as a business with regular, consistent activity aimed at making profit.

Based on what you've described, you're definitely running this as a business activity since you're systematically buying skins at below market value with the specific intent to resell for profit. The IRS doesn't distinguish between digital and physical goods when it comes to business income. You'll want to use Schedule C to report this activity. Track your gross receipts (all sales - so yes, that $2,000), then subtract your cost of goods sold (what you paid for the skins) to get your net profit. That $300-400 profit will be subject to both regular income tax and self-employment tax. Pro tip: Keep meticulous records going forward. Save screenshots of all transactions, PayPal receipts, and Steam transaction history. Also consider tracking any business expenses like platform fees, internet costs for trading, or storage costs if applicable. The IRS loves detailed documentation, especially for newer types of businesses like digital item trading. Since you're already 6 months in, I'd recommend gathering all your transaction history now before it becomes an overwhelming task. Most platforms let you export your transaction data, which makes record-keeping much easier than trying to reconstruct everything later.

Wait, I just realized something... did you account for depreciation recapture? If you've been taking depreciation deductions on the rental property (which you should have been), then part of your gain might be subject to depreciation recapture at a 25% rate rather than the lower capital gains rates. This gets reported on Form 4797.

Great question! I went through something very similar with my LLC property sale last year. Here's what I learned: you're NOT paying capital gains tax twice. The $53k gain from the property sale flows through to you and your partner based on your ownership percentages (50/50 in your case). Each of you will report $26.5k of capital gain on your personal tax returns via Schedule D and Form 8949. The key thing to understand is that your withdrawal of $26.5k isn't a separate taxable event - it's simply you taking out your share of the proceeds. Your original $15k investment becomes part of your "basis" in the LLC. When you withdraw $26.5k, you're essentially getting back your $15k investment plus your $11.5k share of the gain, but you only pay tax on the gain portion once. The LLC will issue you each a Schedule K-1 (Form 1065) showing your share of the capital gain. Make sure to also consider if you've been taking depreciation deductions on the property - if so, you'll need to account for depreciation recapture on Form 4797, which gets taxed at 25% rather than the typical capital gains rates.

This is such a common confusion for new marketplace sellers! I went through the same thing when I started my online business. Here's what I've learned after dealing with this for a few years: Your gross receipts on Line 1 should be the total amount of actual sales you made to customers, minus any refunds or returns. So if your marketplace report shows you had $15,000 in sales but $500 in refunds, you'd put $14,500 on Line 1. The important thing is to NOT subtract any of the fees or expenses from that gross receipts number. All those marketplace fees, shipping costs, payment processing fees, etc. get reported separately in the expenses section of Schedule C. This gives the IRS the complete picture of your business activity. I'd also recommend keeping detailed records of what each fee category represents - some go on Line 10 (commissions and fees), others might be supplies (Line 22) or office expenses (Line 18). The IRS wants to see both your total business income AND your total business expenses calculated separately. Don't stress too much about getting it perfect your first year - the key is being consistent and reasonable with your categorization. You've got this!

I've been dealing with this same issue for my online business! One thing that really helped me understand it was thinking about it from the IRS perspective - they want to see the full scope of your business activity, not just what ended up in your bank account. So for Schedule C Line 1, you report your total sales to customers (minus refunds), which shows how much business you actually did. Then in the expenses section, you list all the costs of doing that business - marketplace fees, shipping, supplies, etc. This gives them a complete picture: here's how much I sold, here's what it cost me to make those sales, and here's my net profit. The mistake a lot of new sellers make is only reporting the net amount that got deposited to their bank account as "gross receipts." But that's not what the IRS is looking for - they want to see both sides of the equation separately. Your marketplace fees aren't reducing your sales, they're a cost of doing business, so they belong in the expenses section where they can be properly categorized and deducted. Keep all your marketplace reports and statements - they'll have everything you need to fill out Schedule C correctly!

I'm also new to this community but have been closely monitoring this thread as I'm experiencing the exact same delay. Filed jointly in late January, AGI $82k, last name starts with B. According to the original alphabetical schedule, I should have been among the very first to receive the payment, but here I am still waiting like so many others. Reading through all these responses, there's definitely a clear pattern - joint filers in the $75-85k income bracket are systematically delayed regardless of where our last names fall alphabetically. I've been checking my FTB online account multiple times daily, but like everyone else, it only shows my standard 2023 return with no MCTR status information. What's particularly frustrating is the lack of transparency from FTB about these delays. @Amara Nwosu's information about additional verification requirements for joint filers is the most helpful explanation I've seen anywhere. Has anyone tried reaching out to their state representatives about this systematic delay affecting what appears to be thousands of joint filers? At this point, it seems like we need more official communication about the actual timeline for our specific situation.

I'm also new to this community and experiencing the exact same delay pattern as everyone else here. Filed jointly in early February, AGI $77k, last name starts with A - so according to the original alphabetical schedule, I should have been literally first in line to receive the MCTR payment. But like so many others in this thread, I'm still waiting despite being well within that A-M timeframe that was supposed to wrap up by October 21st. Reading through all these responses has been incredibly helpful in understanding what's happening. The pattern is crystal clear: joint filers in the $75-85k income bracket are systematically delayed regardless of alphabetical placement. @Amara Nwosu's explanation about additional verification requirements for joint filers really seems to be the key insight here - it explains why virtually everyone sharing their delay story fits this exact profile. I've been checking my FTB online account daily since October 1st, but like everyone else, it only shows my standard 2023 return information with no MCTR status updates. What's particularly frustrating is that FTB hasn't provided any official communication about these delays affecting what appears to be a significant population of joint filers. Has anyone tried calling FTB recently to get an updated timeline specifically for joint filers going through this verification process? It would be helpful to know if there's at least an estimated completion date for whatever additional review they're conducting. Thanks to everyone for sharing their experiences - it's really reassuring to know this is a widespread processing issue rather than individual problems with our returns.

This thread is incredibly helpful for understanding what actually happens after the "Completed" status! I'm a newcomer here but dealing with a similar situation - my 2023 amended return shows "Completed" as of January 10th, 2025. Reading everyone's experiences, it's clear that "Completed" doesn't mean what most of us think it means. The range of wait times after completion is shocking - from 2-3 weeks to 3+ months! @Lauren Wood's professional insight about backend processing steps really explains why there's such inconsistency. It sounds like there are quality reviews, check printing queues, and mailing processes that happen after the "Completed" status. @Evelyn Kelly your situation at 3+ months past completion is definitely beyond normal delays. The specific questions @Lauren Wood provided are gold - definitely ask about the exact issue date, amount, mailing address, and any holds. @Ian Armstrong and @Miguel Ramos showing that reissued checks come quickly once you get the right person gives me hope these situations can be resolved. Thanks to everyone sharing their timelines and experiences. This community knowledge is way more valuable than the vague information on the official IRS tools! I'll be following this thread closely and will share my own experience as it develops.

Reading through everyone's experiences here has been really eye-opening! I'm dealing with a similar situation - my 2023 amended return shows "Completed" as of December 3rd, 2024, so I'm about 2 months out now. Based on what everyone is sharing, it sounds like I'm getting close to the point where I should be concerned. @Lauren Wood's breakdown of the backend processing steps after "Completed" status is incredibly helpful - I had no idea there were quality reviews, check printing queues, and mailing processes that happen after that date. The questions you provided are exactly what I'll ask if I need to call. @Evelyn Kelly definitely call that number tomorrow with those specific questions! Your October completion date puts you way past any reasonable timeframe. The success stories from @Ian Armstrong and @Miguel Ramos show that once you get the right person on the phone, they can usually track down what happened and get a replacement check issued quickly. It's frustrating how the "Completed" status is so misleading - they really should be more transparent about what that actually means vs when people can expect their refunds. This thread has been more informative than anything on the official IRS website! Thanks everyone for sharing your experiences and timelines.