Reoprting Ebay Losses to IRS in April

[Jay968]

What is the name of your state?California
Due to health issues I was forced to retire this past year and as a result, ended up selling some personal items on ebay to pay off some debt. I literally took a loss on everything I sold. Everything (about 18 transactions) sold for about $35,000 and I had originally spent about $45,000 on these items.
Must I report these sales to the IRS on my tax return in April even though I took a loss? If so, does the tax form that I will fill out have provisions for reporting the amount that I paid for the items and the amount that I sold them for in order to show the losses? I understand that the loss cannot be used to offset the taxes that I otherwise owe for the year.

 

[Taxing Matters]

Must I report these sales to the IRS on my tax return in April even though I took a loss?

No. Losses on personal/household goods are not deductible and there is no need to report those sales on your federal income tax return. But keep the documentation for the purchases and losses in the event the IRS inquires about the $35k you realized from the sales so you can show the IRS you sold them at a loss.

 

[Jay968]

Thank you!

 

[Zigner]

What is the name of your state?California
Due to health issues I was forced to retire this past year and as a result, ended up selling some personal items on ebay to pay off some debt. I literally took a loss on everything I sold. Everything (about 18 transactions) sold for about $35,000 and I had originally spent about $45,000 on these items.
Must I report these sales to the IRS on my tax return in April even though I took a loss? If so, does the tax form that I will fill out have provisions for reporting the amount that I paid for the items and the amount that I sold them for in order to show the losses? I understand that the loss cannot be used to offset the taxes that I otherwise owe for the year.

How do you figure that those are "losses"? What you're talking about is the difference between paying retail for a brand new items, vs being paid a private-party price for used items. Depreciation in the amount of 23% for "personal items" is darned good in my book...some would argue that you came out ahead of where you could have been.

 

[Taxing Matters]

How do you figure that those are "losses"?

For income tax purposes, if you buy, say a TV for your home for $400 and sell it later for $300, you have a $100 loss. Since the item was for personal use, that loss is not deductible. The fact that perhaps you made out well on the sale because the used TV you sold normally only has a fair market value of $200 doesn't matter when it comes to tax. Of course, to you selling it for more than it was worth is great, but that still doesn't make the sale at a gain. There was still a loss on it compared to what you paid for it.