Tax EXPERTS---Paying taxes from craigslist.com?

Question

this is just a question.

if i sell things through craigslist, is the money i earned taxable? How will the government know:

http://www.craigslistfoundation.org/uploads/docs/CLF_5013c_OK.PDF

Answer 1

That link is the the Craigslist Foundation. It's a charitable organization having NOTHING to do with your ads or sales on Craig's List. If you should decide to make a charitable donation to The Craigslist Foundation, that would be deductible if you itemize your deductions.

If you're running a business of selling things that you advertised on Craig's List, that is fully taxable income to you. The IRS will eventually be aware because someone somewhere will report money given to you or received from you on a tax return someplace. At that point, you'll be on the radar for followup.

If you're just selling the odd stuff you own and no longer need for less than you paid for it, there's no tax consequences since you're not turning a profit.

Answer 2

If you sell items laying around the house for less than you paid for them, no that is not taxable but if you are selling items at a proftit, yes that is taxable.

You're correct. The government wouldn't know. But they could find out.

Answer 3

It depends. If you're selling stuff you already owned at no profit, then there's no issue.

If you're making a full-fledged business out of selling things you bought wholesale (without paying taxes on them) and selling them at a profit, yes, you will have to pay taxes on that.

And the letter to which you refer has NO relevance to the question you've asked. See my answer to the other dozen or so posts you've polluted around this section.