Ebay Garage Sale Taxes

Tax reports are available on seller hub.

Ebay garage sale taxes.

Ebay urges users in the site s educational materials and seminars to learn about tax issues. Ebay power sellers frequent sellers. Ebay spokesman chris donlay said the company does not report individual sales to the tax authorities. That can simply be a note you create showing what you bought date of purchase amount paid where you bought address of yard sale.

If you are selling your own purchased items you bought at retail as some point and using ebay as a yard sale you generally do not have to pay taxes unless you make a profit which is highly unlikely on ebay. Ebay s buyer exemption program for sales tax. Alternatively you may be able to get a credit for sales tax paid to ebay directly from your state. If your ebay sales are a business.

In a garage sale you typically sell household items you purchased over the years and used personally. According to the irs if you only sell occasionally and your online sales are equivalent to a physical garage sale you do not have to report your gross sales examples of this would include selling children s outgrown clothing or toys a couple of times a year having moving sales as you downsize your possessions or selling items as an online estate. If you re selling on ebay as a business report your profits and losses on schedule c which is used for self employed people who don t have bosses that withhold taxes for them. If your online sales ebay or some other online service are the internet equivalent of an occasional garage or yard sale you do not have to report the sale on your income tax return.

And sales use tax will always be included and required by any buyer. Reporting gross sales less than 20 000. If you are a tax exempt buyer we have a buyer exemption system that allows you to submit sales tax exemption certificates to ebay and make purchases without paying sales tax. If a shipping address is in one of the marketplace responsibility states within the u s the applicable tax will be collected by ebay and included in the order total at checkout.

You can find almost anything for sale on ebay from a piece of fine art to clippings of justin bieber s hair. Ebay is required to charge internet sales tax on purchases in 34 states. The difference between a business and an individual selling some personal property is the intent. If you frequently garage sail and then flip sell the goods at another garage sale or on line you could be considered a business.

Even if you re employed part time or full time elsewhere you ll still need to fill out the schedule for your ebay activities. So it s no surprise that the irs doesn t view all sellers alike in the online marketplace.