Ask an Accountant: Yard Sale Earnings

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Question:
Do I have to claim money I make in a yard sale?

Answer:


Basically, the occasional garage sale does qualify for the exclusion from income due to the fact you normally sell your personal effects at a loss, and you can’t take a loss on this sale. In the event you sold something at a profit (highly unlikely, but could happen) you would have to report the gain

Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

photo credit: austinpost.org

IRS Circular 230 Notice: Any U.S. tax advice in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions

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1 comment… add one

  • I’m so happy to read that this is the typical answer. I just held 3 days of yard sells and definitely took a loss on all the items. I wonder what the answer would be if the items were a gift, They were still sold under value for most items, but I know that some of the items were baby shower gifts and presents that were given to my child. I guess I need to ask a tax accountant.

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