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selling on ebay, income tax For Ebay dealers...I learned a lesson (1 viewing) (1) Guests
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TOPIC: selling on ebay, income tax For Ebay dealers...I learned a lesson
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Gillam Kerley (Visitor)
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selling on ebay, income tax For Ebay dealers...I learned a lesson  
...which really shows up the idiocy of the tax code and the IRS. As far as I know, garage sale income is not counted as taxable income (at least here in Iowa).  Garage sale perpetrators do not have to apply for a sales tax number, and collect and report sales tax, either.  In the same vein, I can sell an item to a friend, make money on it, and not report that as income, either.  If it was an item left to me or given to me, the entire amount would be income, wouldn't it?  A pox on all the IRS nonsense. I don't see eBay any different from a garage sale, myself. Sales tax laws differ from income tax laws (and, for that matter, vary from state to state).  As I recall from law school, the IRS Code defines income in the broadest possible terms ( from any source derived ) and it's all taxable until the IRS says it isn't.   So garage sale income is taxable, as are private party sales.  (Although, most people sell stuff at garage sales for less than they paid, because they bought the stuff new.  So there would be no net taxable income.)  Most people don't pay taxes on these (and other income derived from the informal economy), and it generally isn't worth the IRS's time to enforce it, even if it is technically taxable. Sales tax laws generally have a minimum threshhold before they kick in
 
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