SIGforum
Paying income tax upon selling item. New laws?

This topic can be found at:
https://sigforum.com/eve/forums/a/tpc/f/320601935/m/3040070694

September 28, 2023, 04:21 PM
jhe888
Paying income tax upon selling item. New laws?
quote:
Originally posted by Hamden106:
I wonder about a garage sale of many things that each sold for pennies on the dollar but the total take is over 600$.



The $600 threshold is only for individual transactions, and is implemented through the online fora like Ebay, so at a garage sale neither will be the case.



The fish is mute, expressionless. The fish doesn't think because the fish knows everything.
September 28, 2023, 04:23 PM
jhe888
quote:
Originally posted by Hamden106:

How about selling a Hammerli to a forum member out of state for a profit?


That would be income and taxable. If you don't use a service like Ebay, they will not know it happened because the buyer will, almost certainly, not issue a 1099.



The fish is mute, expressionless. The fish doesn't think because the fish knows everything.
September 28, 2023, 07:33 PM
Rey HRH
quote:
Originally posted by hjs157:
quote:
Originally posted by joel9507:
Just save your receipts


If I'm not mistaken hobby losses are non-deductible. In the OP's example, it is near certain the seller purchased the guitar with monies which were previously taxed as income. The guitar was also most likely subject to state sales tax when purchased new. It's complete and total taxation overreach for the proceeds from the sale of used personal items to be considered taxable income.


IIRC, net hobby losses are not deductible but hobby expenses can be netted against hobby income.


"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.