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kristenpaige16
Returning Member

I received more than $600 through PayPal invoices by selling used clothing. Does this affect my taxes?

 
1 Reply
johnw1000
Employee Tax Expert

I received more than $600 through PayPal invoices by selling used clothing. Does this affect my taxes?

Hello

I hope your day is going well.  In most cases it will not affect your taxes assuming you sold the used cloths for less than what you bought them for.   

But if you sold them for more than what you bought them for, then you would need to report that income.  How you reported that income would depend on the circumstances.  If you bought the cloths with the intent to sell them later at a profit it would be considered investment income.  But if you actually created a business to buy and sell used cloths then you would report that business income on a schedule C.  

Here is a link that you may clarify the issue.  https://ttlc.intuit.com/turbotax-support/en-us/help-article/sales-logistics/report-personal-items-so... 

Have a great day!

John

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