Re: No good deed goes unpunished


Ignoramus19198 wrote: 
On Wed, 14 Dec 2005 15:45:08 -0600, Rex B <rex@xxxxxxxxxxxxxxxx> wrote:

Too_Many_Tools wrote:

"Just because you sold something on ebay does not mean you made a
taxable
profit, you likely sold it at a loss."

I have a lifetime accumulation of things that I will be selling on ebay starting next month. Many things I recall what I paid, in cash, likely at a garage sale. I intend to keep records on each sale, including cash basis and all expenses associated with the sale. I would expect to have a fatter bank account, and a tax obligation that is a fraction of that. 


Assuming that you had these tools as hobby tools...

Check with your accountant, as gains on sale of these tools may not be
taxable (and that is the answer that I expect you to hear). 

What is important when you make money on resale is whether you
intended to make a profit with them.

Example. Person A buys 11 400-600 A circuit breakers for $66 and
resells them for $1,400 within two months, as part of a pattern of buying
used industrial stuff and reselling it. A profit has been made and
taxes need to be paid.

Example. Person B buys a lathe for $15 at a garage sale and uses it
for 20 years for pleasure. Sells it on ebay for $300. There is no
profit motive and the gain is likely not to be taxable. 

Find it out for sure with a tax pro, but look for someone recommended
who actually wants to help you besides collecting the fee.


That is very good information.
Thanks for posting.

Rex
.

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