Ebay sales by an individual

Forum|Forum|3 years ago
September 28, 2022
1 reply
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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!

VincentL

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.

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