How may I show on Schedule C as my wife has taken over sales on Ebaysince I was laid off?

Hi. This is my first post and I am new to this. Thank You in advance
for any advice you can give. I was laid off from my full time job the
first week of 2009. I was also selling new coins on Ebay for the past
4 years and had an inventory of about $8,000 at the end of 2008. I
stopped auctions at the end of December. The first week of 2009 I also
set up a new email and paypal account in my wife's name and gave her
the reins as I have been out working two part time jobs and collecting
unemployment. She has had $6600 in gross sales for 2009. On the cost
end $1300 was Ebay fees, $300 PayPal fees and $650 shipping with $265
refunded. She purchased goods of $1600 on her paypal account and I
purchased goods on my paypal accounts of $2200 for her to sell. Can I
sell my last years inventory to her at cost and start her with that
beginning inventory or can she start out with zero? She does not have
enough working time in to collect any Social Security and would like
to know if the Ebay auctions will be contributed as time worked for
her?
Thank You for your time. We appreciate it and God Bless! Bernie

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On Mar 4, 9:50*pm, Bernie <heavensc...@netzero.net> wrote:
> Hi. *This is my first post and I am new to this. *Thank You in advance
> for any advice you can give. *I was laid off from my full time job the
> first week of 2009. *I was also selling new coins on Ebay for the past
> 4 years and had an inventory of about $8,000 at the end of 2008. *I
> stopped auctions at the end of December. The first week of 2009 I also
> set up a new email and paypal account in my wife's name and gave her
> the reins as I have been out working two part time jobs and collecting
> unemployment. *She has had $6600 in gross sales for 2009. *On the cost
> end $1300 was Ebay fees, $300 PayPal fees and $650 shipping with $265
> refunded. She purchased goods of $1600 on her paypal account and I
> purchased goods on my paypal accounts of $2200 for her to sell. *Can I
> sell my last years inventory to her at cost and start her with that
> beginning inventory or can she start out with zero? She does not have
> enough working time in to collect any Social Security and would like
> to know if the Ebay auctions will be contributed as time worked for
> her?
> Thank You for your time. *We appreciate it and God Bless! Bernie
>
The "easy" way to do this is to recognize that a business in which
husband and wife participate can be reported on a single Schedule C.
Essentially you are electing out of partnership treatment. So you can
"continue" the same Schedule C you had in 2008. But you would list her
as the owner in 2009, or, to be more precise, you were the owner for
the first week and she thereafter (but I suspect you did little or no
activity yourself during that week). So you would prepare a Schedule
SE for her share of the Schedule C and, if you had any, a Schedule SE
for you; the total of the two would be the total income of the
Schedule C. The Schedule SE is what helps her build up social security
credits, assuming that she has enough net income.

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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On Mar 4, 11:50*pm, Bernie <heavensc...@netzero.net> wrote:
> Hi. *This is my first post and I am new to this. *Thank You in advance
> for any advice you can give. *I was laid off from my full time job the
> first week of 2009. *I was also selling new coins on Ebay for the past
> 4 years and had an inventory of about $8,000 at the end of 2008. *I
> stopped auctions at the end of December. The first week of 2009 I also
> set up a new email and paypal account in my wife's name and gave her
> the reins as I have been out working two part time jobs and collecting
> unemployment. *She has had $6600 in gross sales for 2009. *On the cost
> end $1300 was Ebay fees, $300 PayPal fees and $650 shipping with $265
> refunded. She purchased goods of $1600 on her paypal account and I
> purchased goods on my paypal accounts of $2200 for her to sell. *Can I
> sell my last years inventory to her at cost and start her with that
> beginning inventory or can she start out with zero? She does not have
> enough working time in to collect any Social Security and would like
> to know if the Ebay auctions will be contributed as time worked for
> her?
> Thank You for your time. *We appreciate it and God Bless! Bernie

If you are self-employed, you earn one quarter of social security
credit for each $1,120 in net self-employment income, up to four
quarters in a year. That's for 2010; I don't know what the figure was
for 2009, but probably very close to $1,120.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

On Mar 5, 9:22*am, Tom Healy CPA <t...@tomhealycpa.com> wrote:
> On Mar 4, 9:50 pm, Bernie <heavensc...@netzero.net> wrote:
>
> > Hi. This is my first post and I am new to this. Thank You in advance
> > for any advice you can give. I was laid off from my full time job the
> > first week of 2009. I was also selling new coins onEbayfor the past
> > 4 years and had an inventory of about $8,000 at the end of 2008. I
> > stopped auctions at the end of December. The first week of 2009 I also
> > set up a new email and paypal account in my wife's name and gave her
> > the reins as I have been out working two part time jobs and collecting
> > unemployment. She has had $6600 in gross sales for 2009. On the cost
> > end $1300 wasEbayfees, $300 PayPal fees and $650 shipping with $265
> > refunded. She purchased goods of $1600 on her paypal account and I
> > purchased goods on my paypal accounts of $2200 for her to sell. Can I
> > sell my last years inventory to her at cost and start her with that
> > beginning inventory or can she start out with zero? She does not have
> > enough working time in to collect any Social Security and would like
> > to know if theEbayauctions will be contributed as time worked for
> > her?
> > Thank You for your time. We appreciate it and God Bless! Bernie
>
> The "easy" way to do this is to recognize that a business in which
> husband and wife participate can be reported on a single Schedule C.
> Essentially you are electing out of partnership treatment. So you can
> "continue" the same Schedule C you had in 2008. But you would list her
> as the owner in 2009, or, to be more precise, you were the owner for
> the first week and she thereafter (but I suspect you did little or no
> activity yourself during that week). So you would prepare a Schedule
> SE for her share of the Schedule C and, if you had any, a Schedule SE
> for you; the total of the two would be the total income of the
> Schedule C. The Schedule SE is what helps her build up social security
> credits, assuming that she has enough net income.

Thanks for getting back to me with this. I was wondering about what
was left on inventory when and if we wanted to end the business. How
would you show that and what do companies do with inventory when faced
with this decision?
Thanks

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

On Mar 4, 8:50*pm, Bernie <heavensc...@netzero.net> wrote:

> Hi. *This is my first post and I am new to this. *Thank You in advance
> for any advice you can give. *I was laid off from my full time job the
> first week of 2009. *I was also selling new coins on Ebay for the past
> 4 years and had an inventory of about $8,000 at the end of 2008. *I
> stopped auctions at the end of December. The first week of 2009 I also
> set up a new email and paypal account in my wife's name and gave her
> the reins as I have been out working two part time jobs and collecting
> unemployment. *She has had $6600 in gross sales for 2009. *On the cost
> end $1300 was Ebay fees, $300 PayPal fees and $650 shipping with $265
> refunded. She purchased goods of $1600 on her paypal account and I
> purchased goods on my paypal accounts of $2200 for her to sell. *Can I
> sell my last years inventory to her at cost and start her with that
> beginning inventory or can she start out with zero? She does not have
> enough working time in to collect any Social Security and would like
> to know if the Ebay auctions will be contributed as time worked for
> her?
> Thank You for your time. *We appreciate it and God Bless! Bernie

Is it possible to work part time jobs and still collect unemployment?
Is it possible to collect unemployment if you have a Schedule C
business, even if it generates a small salary?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

On Mar 9, 9:24*pm, "removeps-gro...@yahoo.com" <removeps-
gro...@yahoo.com> wrote:

>
> Is it possible to work part time jobs and still collect unemployment?
> Is it possible to collect unemployment if you have a Schedule C
> business, even if it generates a small salary?
>
Anything is possible. By statute, unemployment benefits are reduced,
ultimately to zero, by income of the nature you describe.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>