When you get paid for selling something from eBay, is that considered income?

Question

I know people make money from eBay, are they declaring that as income?

Answer 1

If you make profit selling the item and the shipping costs don't eat away at the profits
then that is income. If You lose money on what you are selling then it's not income! I know
a person who sells their unsaleable yardsale items on ebay. This person sells them for less on ebay than at her yardsale in fall & winter! She doesn't want to pay for storage cost all year around is why!

If You're asking because of being on social assistance well in Canada you're allowed to earn 30% on top of what you receive! In other
words if one receives $808 a month they can earn $242.40 before declaring any income anything earned above that limit is considered income for those receiving $808 a month!
If you're in the USA it might be different but
Canada does copy alot of ideas from the USA

Answer 2

I would say most are not reporting it. You would have to track not only what you sell the item for, but how much you paid for it in the first place. The difference would be either profit or loss. Technically only items you profited on would be income. Since it is not really possible to document the profit/loss/expense numbers of your average home eBayer, they don't.Then there is a dollar amount your income would have to exceed.

There are actual business who sell constantly on eBay, as well as in catalogs or traditional stores, I am sure these are IRS compliant.

Answer 3

If you sell things for more than you paid for them it is income. If you buy a new car for $20,000 and later sell it used for $5,000 it is not income. If you buy a classic car for $400 clean it up and sell it for $1,000, it is income.

Answer 4

No. It's the same as selling it at a garage sale,...unless that is their business and they write off business expenses under that name, then they would declare it.