Ebay Tax Question

[my3kids]

I just had a thought.....is the money I've made on ebay taxable income? It is stuff I'd previously purchased...not things I made to sell. Before someone jumps on me to say I shouldn't get tax advice from strangers, let me say I can look into it with a professional, but I wanted a concensus answer from this gang.

My total is so small....under $200, I'm sure.

So, what is the concensus among this group. Selling gently worn garments to recoup a small portion of their origional purchase price....taxable, or non taxable?

 

[DianeV]

Personally if its a small amount like that and you are mostly selling off your own stuff I dont think it needs to be reported..now if you were out buying stuff strictly to sell and making a decent amount you would end up needing to.

That is just my opinion though

 

[disneychrista]

Officially ALL INCOME is taxable.

 

[my3kids]

Okay, I wasn't sure if this was income, or something else. If it is income then, yes, I'll report it as such. Do I deduct all the ebay fees and PayPal fees and what is left as profit is my income?

 

[Microcell]

I don't know what it is, but check with IRS because you do not have to file if it is under a certain amount.

 

[DiznEeyore]

It's my understanding that it has to be actual *profit* to be declared income. For example, if you sell something for the same amount that you paid for it, then that wouldn't be profit, per se. Tax experts please correct me if I'm wrong!

 

[disneychrista]

A tax professional will be able to tell you more then I can. I believe you have to file a schedule C to be able to claim any deductions to your income.

To be honest I wouldn't even think twice to not claim "garage sale" income.

 

[imsayin]

Technically it is income, but you would report it on schedule C as business income. You would deduct any expenses related to it on the schedule C also. That includes paypal fees, ebay fees, cost of the merchandise, etc. As a business, you can also deduct depreciation on your computer for the percentage of time you use it to "conduct" your business, car usage, cell phone, and anything other expense you put out to obtain your products. For $200, I would not waste my time on a schedule C. For someone who does their own taxes and may have to seek professional advise to get the C done, it may cost more than $200 (part of which can also be deducted on the schedule C). The risk you are taking is that the IRS audits you & finds out you didn't report this $200 less expenses. You would then be required to pay taxes, interest, and penalties on whatever income you didn't report.

I am not suggesting anyone "cheat" on their taxes as that is illegal.

Here is a professional opinion:
www.entrepreneur.com/article/0,4621,314378,00.html

 

[my3kids]

Great article! The thing is....I've never bought anything to sell...I just sell clothes my children (or me ) have outgrown. So, my cost for the "inventory" is a whole lot more than what I consider my "profit."

I am having a ball and it is fun to have a little money "of my own."

 

[DianeV]

If you are selling used clothing etc. you are not making a profit per se. You are most likely getting less for them then you paid originally