pay income taxes from sale of old lawnmower

[rocket]

Should a person pay income taxes from sale of things around their house such as old lawnmower, books, old clothes ???
I vauguely recall there was a reason why these should not be reported as income.

[SSSS]

Are you selling it for a profit?

More comprehensive answer: if you sold it for more than you paid for it, you're supposed to report the profit as income. If you sold it for a loss, you don't have to report the sale, although you generally can't deduct the loss except under certain conditions that I'm not familiar with. Gains can be short-term or long-term.

If you used the item for business and claimed a depreciation deduction, your basis has to be adjusted for the depreciation you claimed in order to determine if you have a taxable gain.

[hlfo718]

Maybe sales tax in your state.

[ResNullius]

Does this mean that I can send the IRS an old lawnmower and call us even.

[SSSS]

Maybe sales tax in your state.

I don't think there's typically a sales tax requirement on sales from an individual to an individual.

[555]

Is this the kind of old lawnmower you would take to the Antiques Roadshow for an appraisal. Then maybe it would be taxed as a collectible.

[billern]

Losses on the sales of personal items are non-deductible and gains are taxable. It is rare for a personal item to be sold at a gain so often nothing needs to be reported.

[bottlecap]

Maybe sales tax in your state.

I don't think there's typically a sales tax requirement on sales from an individual to an individual.

I would not count on this. Unless you made money on it, I don't think the IRS would be interested. Sales tax might be technically be an issue, however.

Realistically, I think I'd remain ignorant on this if I were you. I don't think states go around investigating and filing suits over $50 lawn mower sales between individuals. You spend a whole lot of time researching this, preparing and filing a return over maybe a $3 tax liability.

It's up to you, though.

JT

[SimonJester]

Does this mean that I can send the IRS an old lawnmower and call us even.

I would love for you to find out for us. Attach a note to the lawnmower "Please accept this lawnmower as payment in full for my 2012 tax liability", along with your 1040. I'd be curious how long it takes the IRS to get back to you and what they would end up doing with your lawnmower.