pay income taxes from sale of old lawnmower

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pay income taxes from sale of old lawnmower

Postby rocket » Thu Jan 31, 2013 8:57 am

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.
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Re: pay income taxes from sale of old lawnmower

Postby SSSS » Thu Jan 31, 2013 9:01 am

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.
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Re: pay income taxes from sale of old lawnmower

Postby hlfo718 » Thu Jan 31, 2013 10:33 am

Maybe sales tax in your state.
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Re: pay income taxes from sale of old lawnmower

Postby ResNullius » Thu Jan 31, 2013 10:36 am

Does this mean that I can send the IRS an old lawnmower and call us even.
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Re: pay income taxes from sale of old lawnmower

Postby SSSS » Thu Jan 31, 2013 10:44 am

hlfo718 wrote: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.
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Re: pay income taxes from sale of old lawnmower

Postby 555 » Thu Jan 31, 2013 10:48 am

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.
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Re: pay income taxes from sale of old lawnmower

Postby billern » Thu Jan 31, 2013 10:51 am

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.
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Re: pay income taxes from sale of old lawnmower

Postby bottlecap » Thu Jan 31, 2013 10:55 am

SSSS wrote:
hlfo718 wrote: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.

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Re: pay income taxes from sale of old lawnmower

Postby SimonJester » Thu Jan 31, 2013 6:51 pm

ResNullius wrote: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.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin
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