I have made some eBay sales this year, that exceed the $600.00 limit, sales will total about $1000.00-$1500.00. All the sales are used items and sold at a loss. Unfortunately I do not have all the past purchase receipts. How do I include this on my taxes and ensure I do not pay taxes on items I sold as a loss?
Thank you!
The IRS website has information on what documents are acceptable:
https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping
The recognition of loss is dependent upon the nature and character of the loss. Was this investment property or hobby losses?
https://www.irs.gov/taxtopics/tc409
Selling an investment property at a loss means accepting less than what you initially paid for it. Generally, when a rental or investment property is sold at a loss your losses can be deducted from ordinary income. Again, this is the income most people report on a Form 1040 each year when they file their taxes.
Hobby losses are not deductible.