02-20-2014 04:45 AM - edited 02-20-2014 04:46 AM
Only you can tell if you made money on any of the items you sold, we can't.
So, when you do the profit/loss statement for your taxes, you deduct the eBay and Paypal fees, the cost of the item, packing supplies, and anything else associated with selling your items, what you have left after those expenses is your profit.
If you end up with a Loss, you owe nothing, if you ended up with a profit, you pay tax on that.
That's why it's important to keep good records.
I would advise you to call an accountant who will guide you.
02-20-2014 04:52 AM
do not forget things like gas used (mileage) as a large cost of doing business. When you purchased the items, packing materials, trips to the PO, etc. Also you may be able to deduct a portion of your phone/computer expenses as well.
you will need receipts for an audit, but if you do not have receipts because perhaps the items were laying around the house then I would just use my best guesstimate to estimate the amount of money spent on an item when purchased.
02-20-2014 09:27 AM
If a seller sells something they bought and there is no profit made on it, there is no income (on the sale price) to be taxed, generally speaking. You already paid taxes on the money used to acquire it presumably and are simply taking an 'asset' and 'liquidating' it.
If you DID profit from the sale, then that IS income potentially subject to tax, however there are too many other variable factors to define how MUCH if any of the profit is taxable without further discussion with a professional, as was suggested.
But genarally, if one is simply selling off possesions, there is no taxable income related to that.
02-21-2014 09:30 AM
02-21-2014 01:48 PM
Remember that you still have to file, even if you estimate that you lost money. But really, you should see a tax specialist; only they can deal with your specific situation, and give you all the correct info. If you provide them with relevant associated costs, it will be pretty simple (has been in my case, but I get a 1099K). If you haven't been keeping records or receipts, start now.
I hope you live in a state that doesn't have an internet sales tax.