How to avoid mixing personal and business accounts

Question

Basically I want to sell a bunch of stuff I have on ebay and use the profits to work on a project for my side biz. I want to keep my own taxes as simple as possible, so adding in the ebay sales on my personal taxes is an option, but I was hoping someone else had some other ideas or options.. Any ideas welcomed.

Answer 1

  Mikey, unless you have a corporation, any money you make selling goods or services is added to your personal income, reported on Schedule C.  You have the right idea about keeping records of your business income and expense separate from your personal expenses.  One way of doing this is to keep a separate bank account for business.  Always be sure to keep records of business related income and expenditures.