Threshold for taxation on personal sale?

[Dougthegreat]

I have a hypothetical federal tax question, perhaps someone can help me out here - I'm an ignoramus when it comes to tax law, so try to keep it in "TurboTax Terms"

Let's say I buy a shirt for $10 at the mall. This shirt skyrockets in demand, so being the entrepreneur I am, I put it up on E-bay, and it sells for $1000. Am I liable taxwise for this, and if so, is there a general threshold where "it doesn't matter", such as if I had sold the shirt for $100, $200, or $500 dollars?

 

[Snipes5]

If you sell something for more than you paid for it, the difference is taxable. There is no "threshhold", except in the case of a personal residence.

A tax professional can help you determine whether the income is a "hobby" or self-employment.

Snipes

 

[Dougthegreat]

Oh, thanks for answering my question... there's a distinction between hobbies and employment? I thought it was all just money.

Shows you how much I know about taxation