if i take a loss for selling an item on half.com then i dont have to pay income taxes on it right? Like if I bought the book for 20 and resold it on half.com for 15
2007-11-28 16:28:58 · 5 answers · asked by mauzer666 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
That is correct. As long as you don't start making a profit on it you don't have to pay taxes. However, I would start keeping all my receipts for book purchases and copies of what it sold for just in case.
2007-11-28 16:32:53 · answer #1 · answered by don_sv_az 7 · 0⤊ 0⤋
If you have a loss, you can claim a business deduction on your 1040 Sch C and offset with your ordinary income such as wages etc.
e.g. income 20, cost of goods sold 15, may be your travel milage to post office etc.. can be deducted.
However, this may be considered as a 'hobby loss' and IRS does not allow any deduction. So first establish a business in your form Sch C, and try to make money in later years.
You need to watch out for sales tax also, if you do this in volumne, you are suppose to get sales tax from the buyer and send the money to your state's revenue dept. (that is State Board of Equalization in CA.)
2007-11-29 16:45:38 · answer #2 · answered by kitty_mom 2 · 0⤊ 0⤋
You don't have to pay income taxes on a textbook. Unless you sold about a thousand textbooks...
2007-11-29 00:32:32 · answer #3 · answered by Sage 2 · 0⤊ 1⤋
Correct, no tax on that since you didn't have a gain.
2007-11-29 01:24:04 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
yes
2007-11-29 00:32:05 · answer #5 · answered by lekhraj_gupta 3 · 0⤊ 0⤋