Large Consignment Sales

[3junebugs]

What is the name of your state (only U.S. law)? PA

Is the clothing being resold at a consignment sale taxable? Are any other non-clothing item taxable?

 

[justalayman]

Since there is more than one type of tax involved, the answers are maybe and maybe.

Maybe regarding sales tax. If the business is required to collect and pay sales tax on their sales, there would be sales tax due to the state. Maybe to income tax. It is unlikely the sales price would result in a gain (selling price minus original cost) but I it did, that income would be figured into the owners income for calculation of income taxes.

 

[LdiJ]

What is the name of your state (only U.S. law)? PA

Is the clothing being resold at a consignment sale taxable? Are any other non-clothing item taxable?

Yes and no.

For the owner of the clothing, assumed that it is their used clothing or the used clothing of a family member its generally not going to be taxable because the basis in the clothing would be greater than any sales proceeds.

For the consignment shop...they are earning money providing a service, and they would owe tax on any profits from their percentage of the sales proceeds.