Auctioning and paying taxes on Ebay help please?

Question

Im auctioning off items regularly on Ebay, but all the stuff I sell is going for about half of what i bought the items for originally. My question is would i have to pay taxes on the items if i am selling on ebay?

Note: I'm not doing this as a business, im just trying to get rid of stuff that is cluttering up my house.

Answer 1

No, you're OK. If you were selling the items for a profit, you'd owe tax. But since you're selling things you already own and aren't making a profit on them, your total sales price on the items is less than your total purchase price, you don't report them on your tax return or pay any taxes on the sale. Since they are your personal items though, you can't declare any losses on your tax return either.

Answer 2

Since you are not making a profit then there is nothing to claim. It would be like having a yard sale and claiming what you made on your taxes. If you do make a profit on anything then anything. Depending on what state you live in you should charge sales tax if the item is being shipped to an address in the same state that you live in if you state has a sales tax. Here is a page that describes and tells you how to get a sales tax number.

http://www.skipmcgrath.com/articles/salestax.shtml

Answer 3

If you are not making a profit, then you do not need to worry about reporting the profits for income tax purposes.

However, you may have sales tax issues to contend with for items sold in the state where you live. Check the sales tax laws in your state.

Answer 4

Any taxes on helpful properties from revenues could be capital helpful properties taxes. as long as you're no longer doing this as a organisation or on a regualr foundation, any in state revenues isn't situation ot revenues tax the two. Many states have exemptions for informal revenues.

Answer 5

You will owe income tax at ordinary rates on any profits. If you are just selling off your old stuff at a loss you will owe nothing.