I don't run an eBay store, but I do sell stuff on eBay from time to time if I want some extra vacation money, etc. Do I have to claim this at the end of the year? Thanks!
2007-08-06 10:35:38 · 7 answers · asked by bengis777 2 in Business & Finance ➔ Taxes ➔ United States
How does the IRS know if I am making a profit or not?
2007-08-06 10:57:44 · update #1
If you make a profit on your sale, then it's taxable.
However, if you're selling used items on E-Bay, you often sell for less than you purchased the item for... In that case, you're selling at a loss, and don't have to claim any of the funds to the IRS.
for example:
If you bought golf clubs for $500 & sold them on e-bay for $200 you would claim nothing as income.
If you bought golf clubs for $100 & sold them for $200 on ebay then you'd have to claim $100 as income on your federal tax return.
I hope that helps.
2007-08-06 10:37:32 · answer #1 · answered by Michael K 5 · 1⤊ 0⤋
If you turn a profit on any eBay sales you have to report the income. In most cases, folks selling off "excess stuff" on eBay are selling it for less than they paid for it so there is no profit and therefore no tax is due.
2007-08-06 11:56:45 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
If you are selling stuff from around the house and you are selling it for less than you paid for it, then No, it is not taxable.
If you make a profit, whether you intended to or not, the profit is taxable.
2007-08-06 10:41:22 · answer #3 · answered by Wayne Z 7 · 2⤊ 0⤋
yes
2007-08-06 10:40:21 · answer #4 · answered by skcs11 7 · 0⤊ 1⤋
income is taxable...that's the first rule of taxation
2007-08-06 10:42:55 · answer #5 · answered by I get buckets 2 · 0⤊ 1⤋
technicaly yes.
2007-08-06 10:38:21 · answer #6 · answered by HouAnswerGuy 6 · 0⤊ 1⤋
only if you tell them.
2007-08-06 10:38:29 · answer #7 · answered by Anonymous · 1⤊ 2⤋