topic Can I deduct a loss from the sale of an item I sold on ebay if it sold for less that what I paid for it? in Deductions & credits

Can I deduct a loss from the sale of an item I sold on ebay if it sold for less that what I paid for it?

vaoaks17 — Tue, 04 Jun 2019 19:34:20 GMT

Is selling items on EBay your business or was this a pers...

Lisa995 — Tue, 04 Jun 2019 19:34:22 GMT

Is selling items on EBay your business or was this a personal thing you sold?

In 2015 I reached the IRS reporting threshold for ebay sa...

vaoaks17 — Tue, 04 Jun 2019 19:34:23 GMT

In 2015 I reached the IRS reporting threshold for ebay sales so I now have to file a schedule c. I've never done one. The things I sold on ebay belonged to me and some of the items were new with the price tags on them. I also have found the same item on ebay selling for more than I sold it for so can I deduct the loss on those items?

That doesn't sound like self employment income. Don't se...

VolvoGirl — Tue, 04 Jun 2019 19:34:25 GMT

That doesn't sound like self employment income. Don't see why you have to file schedule C. And no, you can not take a loss just because you sold it for less than someone else. A loss is for selling it for less than you paid for it. But you can not deduct personal losses.

If you did have a business, you would be purchasing items...

Coleen3 — Tue, 04 Jun 2019 19:34:26 GMT

If you did have a business, you would be purchasing items through your business and reselling them for a profit. The only way you could have a loss is to sell the item for less than you purchased it. Seeing someone else sell the same item for more does not constitute a loss.

If you are selling personal items in ebay, you can't take a loss, even if you sell it for less than you bought it.

Re: Can I deduct a loss from the sale of an item I sold on ebay if it sold for less that what I paid for it?

Kurtster — Wed, 01 Jan 2020 21:17:50 GMT

So I have to pay state taxes on a computer I bought for $3,000 from Best Buy in August and sold for $2,000 in December, as if that's "income," but the fact I lost over $1,000 in those four months on that product isn't considered a loss because it's personal? That is one of the biggest scams ever. Can I write off the additional losses of having to pay income tax on the item I sold at a loss? These reporting laws are seriously broken.

Re: Can I deduct a loss from the sale of an item I sold on ebay if it sold for less that what I paid for it?

Critter — Thu, 02 Jan 2020 14:39:59 GMT

You are confused...you will report the sale on the tax return Sch D however it will show as a non deductible loss...you pay no taxes on the sale.

Re: Can I deduct a loss from the sale of an item I sold on ebay if it sold for less that what I paid for it?

Carl — Thu, 02 Jan 2020 19:29:04 GMT

Bottom line is this:

Losses on the sale of personal property are never deductible and never have been. Since you were not self-employed with your own business at the time of the sale, you have no losses to claim.

Generally, even a sole proprietorship has to register as such at the county/city/township level. So if you didn't do that, you can not prove that you were self-employed and "in the business" of buying and re-selling product.