Does selling personal items count as income?

Sold goods aren’t taxable as income if you are selling a used personal item for less than the original value. If you flip it or sell it for more than the original cost, you have to pay taxes on the surplus as capital gains.

Do you have to pay taxes on personal items you sell?

When you sell personal used belongings for an amount that’s less than you originally paid, you’re in luck: You won’t owe taxes on the money you make. As long as you sell your items for less than they cost you, you don’t have to pay taxes on the money you make.

Do sellers pay sales tax on eBay?

Yes, eBay charges sales tax on many purchases on behalf of the seller, without the seller setting up anything at all. This is to comply with marketplace facilitator laws, and happens automatically during the checkout process.

Do Depop sellers pay taxes?

This means that Depop is now required by law to collect sales tax in certain US states on behalf of our sellers. As buyers, you may see this tax applied to your purchase at checkout soon, if the state you live in requires us to do so. Don’t worry – you don’t have to do anything.

Do I have to pay taxes on selling personal items?

Does selling items count as income?

Do I have to pay sales tax on my online business?

Usually the selling platform you use will collect sales tax and show you a report at the end of the year. The sales tax goes to the state that you run your business from; since you’re operating on the internet, sales tax will go to the state where you live.

Is there a national sales tax law for online sellers?

There is no “national” sales tax law in the U.S. Because of this, online sellers may find themselves dealing with quite different sales tax laws and rules when dealing with sales tax in the different U.S. states. Do You Have to Charge Sales Tax for Ecommerce Sales?

Do I have to report online sales on my tax returns?

Online sales of personal, used items do not generally have to be reported. Selling your old bicycle on Craigslist is an example of these types of sales. Losses on personal-use property are not deductible on online sellers’ tax returns.

Do I have to pay taxes on an online auction sale?

The income tax laws work exactly the same way when you sell something online–whether in an online auction or otherwise–as when you sell an item in the physical world. If you sell at a gain–that is, you get more than you paid for the item–you have income. If you sell an item for less than you paid for it, you have a loss.