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| *Loan,banking and credit>>>income tax |
I sell my old clothes on EBay. Basically, I am cutting my losses rather than making an income. Taxes? |
How to I determine profits if my original purchase prices were much higher than I sell the items for? I am operating at a loss, but really, like I say, I am just cutting my losses by reselling all of my baby daughters clothes, my maternity and postpartum, etc... How to handle with taxes? Since you are not making a profit on the selling of these items, you do not report the money taken in by their sale. Source(s): income tax preparer You might have to ask a taxperson, but I would IMAGINE that it works no differently than a garage sale....that you don't have to even mention it. Unless you were to make itemized deductions, but you have to have made a certain amount to do that. I'm not a tax professional, so be sure to ask one. And keep your receipts just in case. put them on craigs list too It depends on your state. In a news report I saw last year, it is still unclear in most states whether or not you need to claim your ebay income...(new york was one.) Reality is, technically you may need to claim it, but the ability to do so is unclear. Did you know that you need to claim income you earn in a yard sale. No one ever does, cuz it is impossible to determine what your income was. If you made a whole lot of money...thousands, tens of thousands...seek a certified accountant who will be liable in years to come...if it ever comes back to you. If you made a little bit of money, don't worry about it. Some states do require you charge sales tax on your online sale...or claim your ebay income. I just don't remember which. It has nothing to do with making a profit. Think about what happens when you sell your car. You are not profiting on that. Personally, I think it is messed up to have to pay taxes on used goods. Technically, the item was already sold and taxed...so to sell it and tax it again is double dipping. You paid tax when you bought it...you have to pay tax to sell it...not cool! |
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