Hello to everyone. I mostly sale my own used stuff, why I have to again pay income tax, not fare at

[ckimodog]

@tukin1915 

Because it's the law.  

[stainlessenginecovers]

If you sell your 'own' stuff and you make no 'profit' from that sale, then you simply have to report both the 'gross' sale (to match the 1099) and the profit (which would be zero if you sold for less and therefor the TAX OWED would be ZERO). 

Hire a Tax Preparer to do your taxes if you are not just doing taxes from a Job (with no other write offs). The $60 to $100 is well worth it vs. you being charged $5000 5 years later with penalties and interest). 

[house*of*paws]

Hi @tukin1915 

No one said you had to pay income tax on used items.  You only pay tax on profit.

If you sell a used item for more than you bought it for … then you may owe taxes on the profit … depending on other deductions you probably have.

[dryophelia]

You pay income tax because it’s income. 

When you purchased the item originally, you paid sales tax. 
Your buyer may also pay sales tax when buying from you, unless they are in one of the hand full of states without sales tax. 

If you feel this in unfair, you should contact your state legislators and voice your concerns. These are the people who can change it. 
But they aren’t going to change it. The revenue generated by online sales is enormous. Now that they can see how much $$ is pouring in everyday, they will never go back. 

[dhbookds]

..........you have alot of clothing listed as NEW.......going to be hard to show that as "used" come income tax audit...............

[krazzykats]

They have almost twice the amount of new items vs. used listed. 

And some very nice, expensive things. 

Might be hard to explain them as personal items being resold.  

[johnrj1226]

1.  When you bought those items  you were  the buyer and paid a  sales tax (unless you bought them from Fast Phil).

2.  Now as  a seller you will receive revenue (aka income).  Income by any source is  subject to a taxation (or income tax) should you have made a  profit after deducting all you cost to sell the items).

3.  So you  are not  AGAIN paying an income tax).  BTW it is  not fair not  "not fare" - fare  is what a taxi cab or UBER or bus  driver charges.

[luckythewinner]

If you are selling it at a loss, you do not have to pay income taxes. But you still have to account for the income and deductions on your tax return.

[maxine*j]

---

@dhbookds wrote:

..........you have alot of clothing listed as NEW.......going to be hard to show that as "used" come income tax audit...............

---

And in quite different sizes, which will also raise the question of "personal use."

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[monica-sells]

"....I mostly sale my own used stuff..."

IF you in fact are being truthful with this statement, you probably would not own any 'income tax'.....

based on your listings, I would question  the validity of this statement......

and many different foot sizes LOL

[caldreamer]

IRS doesn't care where money comes from.   All income must be reported to IRS.   Otherwise, everyone could just say "selling personal stuff" to avoid paying taxes.

That being said...if you file your income tax as a "business" you can deduct all your expenses (EBAY fees, cost of goods, packaging materials, cost to print shipping labels, mileage, returned merchandise).     Business only pays taxes on "net income" after all business expenses deducted.

[allen1853]

This is belabored in dozens of posts and hundreds of comments but here goes. All eBay is reporting is revenue sellers are receiving. Every seller has their own situation. Some are like you just selling their stuff for less than they paid ie. no profit. Income tax is based on INCOME. Profit is income. Gross revenue is not income, unless it is depending on costs, expenses etc. The $600 1099 threshold is much ado about nothing. Assuming you have income that does not include eBay transactions and you file income tax returns for that, keep doing that. If you have no actual income/profit from your sales on eBay, there is nothing to report. You might actually have LOSSES for what you sell on eBay that could arguably be declared against your other income. In the end, however, SEE AN ACCOUNTANT IF YOU HAVE SERIOUS QUESTIONS. 

[714ricki]

The require you to report all online sales. Then, its up to you & your acountant to figure out all the deductions. Its very possible that you will owe very little or no taxes. It will all depend on how you value your items for the cost of goods. Talk to an accountant & they will share more tips which are best suited for your scenario.

Good luck!

[chapeau-noir]

Lawdy - you have twice the stuff running as I do and I make part of my living here. 😣