Selling online

[Pio9577]

Hi. I am closing up all business selling online. I am selling clothes that I purchased in the past. Some are new and some are not. Do I file on all sold items? I have sold items (new and used) for much less than I paid. 

[JBedford]

Hi, @Pio9577 , thanks for the question! Yes, all sold items result in taxable income, but the original cost of the item (and other business expenses) is deductible. You can either deduct that cost in the year it was incurred, or you can treat it as "inventory" and deduct it as Cost of Goods Sold. The first way is the simplest. 

Hope this helps, please let me know if not!

[Pio9577]

Hi this did not help. I have items I bought in early 2000s that I never planned on selling. I don’t have receipts for them.  I did sell some items that I have receipts for and always note that in my taxes but inventory is not an accurate description when you lump a side off of selling something online as a garage sell and others items you sell to make a profit from. 

[JBedford]

One-off sales where you sell an item for less than what you paid are considered nondeductible losses by the IRS. You can't deduct the loss, but you won't have to pay taxes on it either. Does that help, @Pio9577 ?