If I sell things on Ebay, do I have to add that on my tax return?

Question

If I sell things on Ebay, do I have to add that on my tax return?

Answer 1

you would only have to pay tax on your net profit, not the whole sale price.

Answer 2

Sometimes.  If the item was originally deducted on a previous tax return (like an appliance you bought for a rental property) then the money you recover from the sale is taxable.

Otherwise, your sale of personal items is tax-free.  Unless...

You are in  E*Bay as a business, then all profits are taxable, and the losses are deductible, to certain limits.

It is even good to keep track of your personal sales, in the event you ever get audited.

Answer 3

If you are just selling some of your old stuff and not making a profit, then no you don't report it.  Most of the time, if you are selling your old stuff, you are selling it for less than you paid for it, so don't have a profit.

If you are making a profit though, like maybe buying things and reselling them, then yes you are required to report it on your tax return.