Great ebay sales tax info!!

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  1. So in my quest to figure out if I wanted to bid on an auction for a used bag where the seller was charging sales tax, I stumbled upon this site that had some great info on it and thought I'd share:

    http://www.newlifeauctions.com/ebaytaxes.html

    "Selling Personal Items
    Many new eBay sellers wonder if they need to pay taxes on the items they sell. The answer is yes, but only if there is a profit on the sale. Since most used items sell for less than what they cost new, there is no profit on the sale. If there are no profits, then there is no need to pay taxes."
     
  2. ThanKZ for the info, spacey! :tup:
     
  3. found another site too:
    http://www.thebidfloor.com/sales_tax_faq.htm

    If you are only selling leftover items around your home that you bought for personal use, you only have to claim them as "Self-Employment Tax" (Pub# 533 SE Tax) on your FEDERAL return if your GAIN is over $400 per year.

    and yet another:
    http://www.moneybluebook.com/are-ebay-sellers-required-to-pay-income-tax-on-sales/

    The correct question to ask regarding taxability is not necessarily the frequency or dollar amount of the transactions - but rather - did the eBay auction activity result in a net profit? For those who use eBay or other internet auction sites to sell old stuff that’s been piling up in your garage, you probably don’t have to worry about paying income taxes on the proceeds since the cost (the basis) usually exceeds the selling price. Under current tax law, an individual who sells an item online and collects more money than its original purchased value is expected to report that money as income on his or her tax return. Items whose original purchase basis value cannot be determined is typically valued at $0 under current tax law. Thus, it’s advisable for all eBay sellers to get in the proper habit now of retaining their purchase and sales records. You never know when the IRS will flip the switch and go nuts with the eBay seller tax audits. It’s only a matter of time.
     
  4. Questions about taxes come up frequently.
    I wonder if the mods would consider making this
    thread a sticky.
     
  5. I have only sold one item for more than it was worth, I listed my medium tattersall satchel for $100 over retail with a offer option because I wanted to check out bidder's feedback and someone bought it hours after it listed.

    my question is if I had a profit on that one but losses on everything else, there are no taxes due, right?