Skip to main content
Level 1
June 3, 2019
Question

If I resell items on ebay can I deduct the cost for buying them? For example, I buy a video card for $600 and sell for $800, would I just be taxed on the $200 difference?

  • June 3, 2019
  • 2 replies
  • 26 views
No text available

2 replies

Level 12
June 3, 2019

Yes, you are actually taxed on your net income which is gross income less expenses.

You can deduct all ordinary and necessary expenses from your gross income to arrive at net income.

See Reporting Business Income and Deductions to determine what expenses you can deduct to minimize taxable income.

Level 12
June 3, 2019
So, in the above case, you would be taxed on the $200 difference.