I’m thinking about turning my online selling into a business, and I’m trying to get a feel for the tax-related pros and cons of making it official.
Here are 2 questions:
(1) I understand that I can write off business expenses on my tax returns. That includes computer equipment, trips overseas to purchase merchandise, etc. But I’ve never itemized my tax return before. Would I get more money back if I start a business, and then itemize my deductions rather than just taking the default deduction like I always do?
(2) If I make my online selling into an official business, will I have to pay extra business-related taxes?