I understand from a previous response that hobby losses on eBay are not deductible. Everything I sold was at a loss, either sports gear or auto parts.
Is the amount I was paid by eBay all considered income to be added in to my total income, or can I deduct the cost of the item to off set the income. ie. If I sold something at $75.00 and it cost me $100.00. Can I document this so I do not have to include the $75.00 income but not declare it as a loss?
thank you
Hello bmen0165,
Thank you for your question. I am happy to assist you.
Not every eBay sale is subject to income tax. For example, if you use eBay to sell your old items then you may qualify for the “occasional garage or yard sale” treatment. Per the IRS, you do not have to report income from the sales.
It looks like you sold used sports gear or auto parts at a loss which means that you sold an item at a price that was less than the cost of the item. In this case, you do not have to report the income you received from the sales to the IRS, and you cannot claim a loss on it either.
Please refer to the article by clicking on the link below for more information on eBay sellers:
Please let me know if this answers your questions, or if I can be of further assistance.
Thank you!
Shirleyh88