"Certainty? In this world nothing is certain but death and taxes." - Benjamin Franklin
A couple of months ago I talked about the benefits of hiring a professional organizer (how about me? www.bdexterous.com) to organize your belongings and help you orchestrate your yard sale. So one of the big questions about income from that sale: Is it taxable?
Well let's hear it straight from the horse's mouth when said horse is the IRS:
"In a garage sale, you generally sell household items you purchased over the years and used personally. If you paid more for the items than you sell them for, the sales are not reportable."
Yay!! You can now spend your tax-free money on hiring a masseuse for your stay-cation. But wait! Does this mean if you sold your beloved Longaberger basket for $100 less than you paid for it, you can deduct the $100 loss from your income? The answer is unfortunately no: "Losses on personal use property are not deductible, either."
So there you have it folks. You don't have to report your "income" from a yard sale on your taxes but which also means you can not report any loss on items sold at a yard sale. For more complicated issues like selling a coin collection or expensive gems or jewelry (not at a yard sale) you may be delving into capital gains and losses.
For information visit the IRS link on online sales which contains the blurb about yard sales.
For more information visit the IRS link on capital gains and losses.
The IRS is an ever-evolving-law-making creature. If you are unsure, contact your tax professional or CPA (Certified Public Accountant) on any issues. When it comes to messing with Uncle Sam's money, it's better to be safe than sorry.
Anything that doesn't sell at your yard sale that you donate to an approved 501(c)3 organization is considered deductible IF you itemize instead of taking the standard deduction, but remember to get a donation receipt!
Cartoon by Amelia Sauter © 2011
