Q: I started selling items from around my home that I don’t want anymore on eBay. I am selling BELOW what I paid for these items. I’m not trying to make a profit, I’m just trying to get rid of items no longer wanted. Is this considered a business? Do I have to report my eBay sales to the IRS?
A: Selling personal items at a loss is not a business activity, so you don’t have to worry about keeping track of or reporting this activity on your tax return.
The IRS will not allow you to claim a loss for personal items sold on eBay. However, the minute you purchase something with the intent of selling on ebay for a profit, you’ve got a business, and then you DO need to start keeping track of and reporting your activity.
