Collecting sales tax on items sold on ebay.

[mystuffonearth]

i have been selling items on ebay for a while now.  but i don't do it as a business. i just sell items i have around the house i no longer need, like old games, clothes, books, etc. some items are new some are old and used. I have already paid taxes on these when i brought them new. If i sell them now, do i have to collect sales tax? i recently read that there is a new law in my state (NJ) saying selling items on platforms like ebay and amazon sellers must collect taxes, so i am not sure where i stand now. Help?

[7606dennis]

If your state requires that you do so, you must do so or you are violating the law and could face consequences.  You should contact your state's department of revenue or your tax adviser.

[softersilk]

---

@mystuffonearth wrote:

i was given them when the original owner retired.

---

Nice profit, in that case.  Cost of goods sold = 0.  Income tax owed.

[softersilk]

---

@mystuffonearth wrote:

Hi @penguins_dont_fly 

is there anything wrong with having 432 brand new bandanas and all the other stuff i have posted sitting around the house?...  i use to buy in bulk to save on shipping and only used what i needed..  the rest just sit in the house ...  most of the new stuffs are given to me by other people since i had lots of room at the time and they no longer sell due to retirement or going out of business...    So i am not sure why you and @thevintagesilvershop would make a comment the way you two did making it sound like there is something wrong with the way i am selling or what i am selling...  

---

https://www.irs.gov/businesses/small-businesses-self-employed/online-auction-sellers-tax-center

It matters.  Everyone who pays taxes honestly is subsidizing those who don't.  If people are giving you stuff for free and you're selling for a profit, you owe tax.  Doesn't matter if it's "sitting around your house".  

[mystuffonearth]

@softersilk

that's why i posted my question. i don't know where i stand on the tax issue especially with the new internet sale laws. i want to pay my share..  so if someone gifted me something, for a birthday or christmas and sell it on ebay, that would mean i am making a profit? and need to collect tax on the sale? and no, people are not just giving me things for free.. they had said they were gifting it to me. how is this different from a seller selling stuff left to them from a dead relative. i have purchased something from a seller in this situation but no tax were collected... 

"It matters.  Everyone who pays taxes honestly is subsidizing those who don't.  If people are giving you stuff for free and you're selling for a profit, you owe tax.  Doesn't matter if it's "sitting around your house".  

[mystuffonearth]

@softersilk

is it income tax or sales tax?....   how is this income? isn't income tax dealing with work?... 

11-04-2018 06:06:30 PM

@mystuffonearth wrote:

i was given them when the original owner retired.

Nice profit, in that case.  Cost of goods sold = 0.  Income tax owed.

[mystuffonearth]

@mystuffonearth wrote:

i was given them when the original owner retired.

Nice profit, in that case.  Cost of goods sold = 0.  Income tax owed.

[7606dennis]

---

@mystuffonearth wrote:

@softersilk

is it income tax or sales tax?....   how is this income? isn't income tax dealing with work?... 

11-04-2018 06:06:30 PM

@mystuffonearth wrote:

i was given them when the original owner retired.

Nice profit, in that case.  Cost of goods sold = 0.  Income tax owed.

---

Actually, income is any money which is received.  Whether it is taxable by the federal or state government depends upon one's tax situation and the laws of your state.  Again, I advise consulting your tax professional rather than relying on the advice received on these boards.

By the way, when it comes to sales tax, you are not being asked to pay the sales tax, but rather collect it for whatever state you are required to do it for.  Some states have passed laws allowing them to require out of state sellers to collect the tax from their citizens.  Bummer!

[7606dennis]

@mystuffonearth wrote:

i was given them when the original owner retired.

Nice profit, in that case.  Cost of goods sold = 0.  Income tax owed.

[nowthatsjustducky]

---

@7606dennis wrote:

---

Some states have passed laws allowing them to require out of state sellers to collect the tax from their citizens.  Bummer!

---

And those can be safely ignored.   The only laws I am subject to are Federal, Oregon, my county, and my city.  PA, NJ, and all other states hold zero authority to me; and I will not comply with any such demands in the event I ever manage to exceed the transaction count in a year for a single state.

The same goes for any foreign countries that may also try to pull such unenforceable nonsense.