Is selling old items taxable?

Used items generally don't generate taxable income if they are resold for less than what the seller originally paid, he said. Taxpayers usually have a tax liability after the sale of a collector's item.

Is selling old items taxable?

Used items generally don't generate taxable income if they are resold for less than what the seller originally paid, he said. Taxpayers usually have a tax liability after the sale of a collector's item. If you sold the item for a price higher than its fair market value or cost basis (depending on how you purchased it), you are likely to be taxed. If you buy and sell gold or silver, or exchange-traded funds in gold and silver, they will be taxed as collectibles (since gold and silver are considered collectibles).

The anti-clutter mantras of Marie Kondo and others are convincing thousands of people to empty their attics with the things they have collected over the years and sell the most valuable items on eBay or Facebook Marketplace. Whether you run an online auction house or want to take advantage of the Hummel collection of rare figures you inherited from your grandparents, the best protection against an IRS audit is to document both the starting value and the selling price of everything you put on the market. If you create an account with the intention of investing items and selling them for a higher price than you paid, skip this option and move on to the next section; however, if, however, it is a happy accident when you receive more than you paid, simply report the difference in an Annex D as capital gains.

Lynne Bahoora
Lynne Bahoora

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