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File on taxes or no?


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6 replies to this topic

#1 Meltz

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Posted 10 March 2012 - 06:05 AM

I was wondering if I sell some things on eBay or any sites like that and just profit a few hundred dollars, do I have to file that profit when i do my taxes every year? I was thinking I didn't have to but for some reason someone told me I an supposed to..? Thank you for your help in advance.



#2 Seabee

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Posted 10 March 2012 - 07:37 AM

If it's actual profit, yes you do. But remember to account for your basis in the property. If you sold an item for $200 that you purchased for $300 you don't have a profit. Take each sale individually, don't net losses against gains. Any individual sale that nets a profit needs to be reported.


I was wondering if I sell some things on eBay or any sites like that and just profit a few hundred dollars, do I have to file that profit when i do my taxes every year? I was thinking I didn't have to but for some reason someone told me I an supposed to..? Thank you for your help in advance.



#3 Meltz

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Posted 10 March 2012 - 05:01 PM

So you saying any profit what so ever? If I purchase something for cheap or almost nothing and I make any money, I have to report it? How do I get the W-2 for that?

#4 Seabee

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Posted 11 March 2012 - 10:49 AM

You don't need any document to report the income. Any profit whatsoever is reportable. The sale will go on Form 8949 which flows to Schedule D.



So you saying any profit what so ever? If I purchase something for cheap or almost nothing and I make any money, I have to report it? How do I get the W-2 for that?



#5 kwimberl

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Posted 21 March 2012 - 10:04 PM

If you are doing it as a business, it goes on Schedule C. If you are doing it as a hobby, it goes on line 21 of the 1040.

#6 Meltz

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Posted 22 March 2012 - 01:16 AM

I called H&R block and they told me that I only need to report it if I'm doing it to make a profit on purpose such as buying products TO sell. If I'm doing it because I'm selling my unwanted stuff or stuff my friends/family gave me I don't have to report it according to them. Then again I think every state could be different?

Edited by Meltz, 22 March 2012 - 01:17 AM.


#7 Seabee

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Posted 22 March 2012 - 05:18 AM

I called H&R block and they told me that I only need to report it if I'm doing it to make a profit on purpose such as buying products TO sell. If I'm doing it because I'm selling my unwanted stuff or stuff my friends/family gave me I don't have to report it according to them. Then again I think every state could be different?


You received bad advice. See page 35 of IRS Pub 525, under Sale of personal items.

http://www.irs.gov/p...rs-pdf/p525.pdf




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