IRS may consider eBay sales taxable income

[FlyLice]

http://www.yahoo.com/_ylh=X3oDMTEwdnZjM...EdGVzdAMwBHRtcGwDaW5kZXgtY3Nz/s/234599

Damn the IRS. It's legalized thievery!!!

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Please continue this discussion in the previous thread on this topic.

Thank you.

AnandTech Moderator

 

[yoda291]

I'm pretty sure you're supposed to report your income from ebay anyways.

 

[Gibson486]

How about this.....I did my taxes....they will only give me 25% of my federal back

 

[RagingBITCH]

Repost

 

[FoBoT]

may? what "may" is there about it?

income is taxable/reportable from selling stuff, why would using ebay make it different than anything else? is this the "Free internet syndrome" again? (like the i want free FICO scores thread)

 

[GroundZero]

Originally posted by: FoBoT
may? what "may" is there about it?

income is taxable/reportable from selling stuff, why would using ebay make it different than anything else? is this the "Free internet syndrome" again? (like the i want free FICO scores thread)

IT'S THE I'M AN IDIOT AND THINK THAT JUST BECAUSE I MADE MONEY ON SOMETHING I DON'T CONSIDER IT INCOME SYNDROME...

 

[Rumpltzer]

You've gotta be a Power Seller with bazillions of sales (feedback) for the IRS to bother with you.

Not likely that the IRS has enough time to bother with most of us.

 

[StageLeft]

I already thought it was, but that almost nobody reports it, much like internet sales. I do know a guy who actually reports what he buys on the internet on his tax return.

 

[Mayfriday0529]

If you buy something and say you paid 1000$ and then sell it back 6 monts later on ebay and you get half your money back, should that be taxable? I mean its not income its money you already spent right?

 

[Orsorum]

Sec. 61. Gross income defined
TITLE 26, Subtitle A, CHAPTER 1, Subchapter B, PART I, Sec. 61
(a) General definition
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
(1) Compensation for services, including fees, commissions, fringe benefits, and similar items;
(2) Gross income derived from business;
(3) Gains derived from dealings in property;
(4) Interest;
(5) Rents;
(6) Royalties;
(7) Dividends;
(8) Alimony and separate maintenance payments;
(9) Annuities;
(10) Income from life insurance and endowment contracts;
(11) Pensions;
(12) Income from discharge of indebtedness;
(13) Distributive share of partnership gross income;
(14) Income in respect of a decedent; and
(15) Income from an interest in an estate or trust.

 

[shuan24]

Originally posted by: Jnetty99
If you buy something and say you paid 1000$ and then sell it back 6 monts later on ebay and you get half your money back, should that be taxable? I mean its not income its money you already spent right?

that situation is considered a "loss". A reportable gain would be when you sell it for $2000. That extra $1000 you earned should be considered income.

 

[BigToque]

So can you report a loss when you make back less than you paid?

 

[Jzero]

Originally posted by: Stefan
So can you report a loss when you make back less than you paid?

LOL! Now there's an idea!

 

[Orsorum]

Originally posted by: shuan24

Originally posted by: Jnetty99
If you buy something and say you paid 1000$ and then sell it back 6 monts later on ebay and you get half your money back, should that be taxable? I mean its not income its money you already spent right?

that situation is considered a "loss". A reportable gain would be when you sell it for $2000. That extra $1000 you earned should be considered income.

Yep, also known as the Return of Capital doctrine. That $500 loss is not deductible if it's personal property.

 

[shuan24]

well its gonna have to go both ways you know. It doesn't make sense to make people claim their gains, but not their losses....its a two-way street.

 

[NFS4]

http://forums.anandtech.com/messageview...atid=38&threadid=1554484&enterthread=y

 

[Orsorum]

Originally posted by: Jzero

Originally posted by: Stefan
So can you report a loss when you make back less than you paid?

LOL! Now there's an idea!

Only if it's business property. I don't remember if it stems to inventory. Personal losses (except certain personal casualty losses) are not deductible.

 

[Orsorum]

Originally posted by: shuan24
well its gonna have to go both ways you know. It doesn't make sense to make people claim their gains, but not their losses....its a two-way street.

Tell that to the IRS.

 

[Svnla]

Darn, there goes my plan for being an Ebay pimp.

***scratching that plan and thinking about some other get rich or die trying schemes****

 

[Mayfriday0529]

Originally posted by: shuan24

Originally posted by: Jnetty99
If you buy something and say you paid 1000$ and then sell it back 6 monts later on ebay and you get half your money back, should that be taxable? I mean its not income its money you already spent right?

that situation is considered a "loss". A reportable gain would be when you sell it for $2000. That extra $1000 you earned should be considered income.

well good because that's the only type of selling that i do, for used items.