I have a question about claiming income from eBay selling. If I lets say, buy a book at a garage sale for $1.00. Then, I sell it on eBay for $10.00. If the book's original retail value was $20.00, do I still have to claim my income from that since I am still selling it for under it's original value?

Income for tax purposes is YOUR net profit, so you owe the tax, unless your expenses are so high that you have no net profit.

You would be claiming the $10 as the sale and $9 for your profit regardless of what the book's original value is. Also, check out www.score.org which is part of the SBA and have free counselors to speak with who are retired business owners!

You are taxed on your profit, which is what you sold it for (minus expenses) minus what you paid for it. In your example, the $20 has nothing to do with you. Your gain, the taxable amount to you, is $9.

You would owe taxes on the $9 gain, LESS any related expenses (assuming you itemize your deductions). THings such as your ebay fees, shipping (if you paid), telephone and packing costs, etc...

The original value is not important... its what you started with and what you had left over.

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