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    Does selling your items consider an earning?
    This is something I really get confused and am not sure about whether or not I should file the tax. Ok, let's say you have a computer and a smartphone you want to sell, and according to the IRS, you should file tax when you have made $600 or more. The company in which you are going to sell your computer and smartphone to will pay you about $650, therefore, you have earned or made $650 right? Do you still have to file tax on this earning because you are selling your items to a company (let's say Ebay, for example), which is something you don't worked to earn nor the company requires that you have to fill out the W-9 when you've made more than $600 by selling your electronics. I don't know how this works but I would like some suggestions. I know this sounds very confusing, but don't get too stress about it, I just want opinions.


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    There's actually a set amount that you have to make before you have to claim it. I can't remember what it is so it's something you'd have to look into. Just know that not every single penny has to be claimed but also know I'm no tax expert LOL


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    From what I have read, if you sell items (whether it is new or used) you only need to pay tax if the buyer is located in the same state as you.

    For out of the state sales, you do not need to pay tax unless the value exceed $4,000,000 (4 million dollars).

    However, it is suggested that if you only sell one item here and one item there on rare occasions, you don't need to worry about it even if the buyers are from the same state. The situation changes when you sell many items on a regular basis.

    Source information for the above statements - http://www.ebay.com/gds/State-Sales-...2187060/g.html


    I have personally sold a total of dozen items on ebay over the years and around 20 items on Yahoo Auctions over a decade ago. Most of these items were used computer parts (graphic cards, CPUs, motherboards, etc. used by myself but sold when I upgraded my own computer) with one exception which was a brand new custom built desktop computer system (built by myself) to make a little profit when i was still in the high school lol. I remember I sold the computer for $1300. The combined prices of everything I have sold was definitely in thousands. I never paid a cent of tax for these sales. Although I have never got into any trouble about the tax issue, please don't quote me on it...since all these events took place years ago when I was still just a student.


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    If it's personal items that you are selling once in a while due to not needing them anymore then I think it's ok.
    However if it's more business like with a lot of transactions, then I'd take a deep look into taxation. If you do it like this it might even be easier to start your own company, that way you can easily separate the financials from your personal ones.


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    From what I've heard and what i saw on television, E-bay is the one who should pay the taxes and not you. I believe there is already a deduction on your part when you sell your items to a company and thus paying taxes for your earnings would amount to double taxation. I'm not sure what country or state you are at but depending on the laws in your state, there should be a provision there which states if you should be taxed or not.


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    I see. I'm not going to worry then since I sell my personal items once in a blue moon, which is not business-related items. Thank you guys, for making a clarification on this. I'm greatly appreciated!


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    Selling items at a profit is of course considered as an earning. And you need to pay taxes of course. The $600 minimum is based on the profit that you have made and not the cash you have received. Let's say you sold an item worth $600 and received cash of $600. Are you required to pay tax in that case? Of course not. Because there was NO GAIN or PROFIT on your part.

    I also agree that I think eBay already deducts tax from the pay that you receive.


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    Sounds like you are selling second hand items. I wouldn't worry unless you sold a lot and ebay sent you some type of tax document showing they have reported earnings to the irs.

    Selling brand new items may be a different issue with sales tax.


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    If you sell enough items through eBay, you will get a tax form from PayPal. But you have to have like 200 different transactions and make more than $10,000 or something like that. Other than that, I think you should be fine.


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    There is no reporting requirement when you're selling small items of personal property, which were presumably bought with your after-tax dollars. In theory there is no actual gain, as you are trading a widget worth $10 for $10 cash. This doesn't apply for things like real estate, currency, etc, or if you are doing this on a larger scale as a business.


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