Even so, how would you even categorize the money you get from eBay sales of mobile game accounts?

General
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As said earlier. On eBay, I used to sell gaming accounts. When your tax agent asks, what even do you say?

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The classification depends on several factors, including the frequency of sales, the amount of money involved, and whether you’re doing it as a business or a hobby.

Here’s how you might categorize it:

1. Hobby Income

  • Description: If selling mobile game accounts was something you did occasionally and without the intention of making a profit, the income might be considered hobby income.
  • Tax Implications: Hobby income is generally not taxed as business income, but you may still need to report it to the tax authorities. However, you can’t deduct expenses related to the hobby.

2. Business Income

  • Description: If you were selling these accounts regularly, with the intention of making a profit, and possibly reinvesting into the business, it’s likely considered business income.
  • Tax Implications: Business income must be reported, and you can deduct related business expenses (like fees paid to eBay, advertising costs, etc.). You may also need to consider sales tax depending on your jurisdiction.

3. Capital Gains

  • Description: If the accounts were assets that appreciated over time before you sold them, this income might fall under capital gains.
  • Tax Implications: Capital gains are typically taxed at a different rate, and you need to keep track of the purchase price and the selling price to determine the gain.

4. Miscellaneous Income

  • Description: If the sales don’t clearly fit into any of the above categories, you might report them as miscellaneous income.
  • Tax Implications: This would be reported on your tax return, and you might not be able to deduct expenses.

What to Tell Your Tax Agent:

When discussing with your tax agent, explain:

  • The nature of your sales (e.g., frequency, volume, and intention).
  • Whether you were running it as a business or just casually selling some assets.
  • The total income earned and any related expenses.

Your tax agent will help you determine the most accurate category and how to report the income based on your specific situation.

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When discussing your income from selling gaming accounts on eBay with your tax agent, it’s essential to be transparent and accurate. You can explain that you earned income by selling virtual gaming accounts online. Provide any relevant documentation or records to support your statement.