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Level 1

Reporting sales proceeds from personal items sold on eBay

Hello,

 

I have an eBay business for which I (obviously) pay taxes for. Sometimes I sell personal items that I no longer use. I have receipts that show the original price I bought them for, which is lower than what I sold it on eBay, say 3 years later. I have heard that you don’t have to report these sales since there was no profit, but all sales receipts are added on my yearly 1099-K form. How do I handle the proceeds from personal items sold?

 

Example: bought a camera 3 years ago for $1500. Have receipt for it.

Sold now on eBay for $350.

Now I made $0 profit, but $350 in sales. What is the proper way to deduct that on my bookkeeping software so that I don’t pay taxes on it? Thanks.

3 Comments
Level 15

Reporting sales proceeds from personal items sold on eBay

The cost of the cameras is not the issue, the fair market value of the cameras when you brought them into the business as owner equity investment is the issue.

 

then when you sell the cameras, that is the cost that posts to COGS while the sale posts to income.

Level 1

Reporting sales proceeds from personal items sold on eBay

Thanks for the reply. So how do I figure out the 'fair market value' of the items? I used them for x amount of time, then one day decided to sell them on eBay for x amount of money.

Level 1

Reporting sales proceeds from personal items sold on eBay

Thanks for the reply. How do I figure out the fair market value? I basically used the item for x amount of years, then one day decided to sell on eBay for a price that was comparable to other listings. Please advise.

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