Simple this is not,
NY expects sales tax to be collected on the GROSS price. Add
any fees to ship your drill to the ammout you spent selling
it. Your purchase price is not the base and you will not use
your tax CERTIFICATE for the ammout you paid. That is an
expense and must be added like other expenses to arive at
your cost. You lost more than bucks.

Brian

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

<< General Disclaimer: > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It cannot be used by any taxpayer for the purpose of > << avoiding penalties that may be imposed on the taxpayer. > << ================================================== ===== >
"Larry" <Larry[at]larry.com> wrote:

- quote -

Unless the State of New York requires individuals to collect
sales tax from purchasers every time they sell a $50.00
personal item, then no, you would not have to collect sales
tax.

- quote -

Whether or not you have a resale business, the facts here
are that you are selling a personal item. If you sell a
personal item for a gain, then you must pay tax on the
difference between the purchase price (including tax) and
the sale price. This is reported on Schedule D. However,
you had a loss on the sale. A loss from the sale of a
personal item is never deductible.

On the other hand, if you have a business buying things and
reselling them on eBay, you have business income to report
on Schedule C. The cost of items you actually sold are
deductible from that, as well as other business expenses.
But that does not change the personal nature of the sale of
your own personal drill.

Bryan
------------------------ Bryan Kellar, EA
Oregon Tax Help, Inc. -- Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org

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<< General Disclaimer: > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It cannot be used by any taxpayer for the purpose of > << avoiding penalties that may be imposed on the taxpayer. > << ================================================== ===== >
Larry wrote:

- quote -

You had a nondeductible personal loss of $10. Report
neither the proceeds nor the purchase price on your tax
return.

Sales tax issue snipped, because I know nothing of NYS sales
tax.

Phoebe

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I am in NYS and have a tax certificate. I want to comply
with the law, so I not trying to get away with anything; I
just want to know what I should do.

I just sold a drill on ebay for $50 that I bought last year
for my own use for $60 and paid sales tax on it. It was
sold in state.

1) If I bought it for resale, I would not have paid sales
tax on it. So, do I have to collect sales tax on it now, or
does it fall under the garage sale exclusion. Or, can I get
a refund on the sales tax I paid when I bought it.

2) What are the income tax consequences? Did I make $50 or
lose $10? (It was indistinquishable from new when I sold it)
I have bought stuff for resale that I sold at a profit and
will be declaring them on my income tax, so I will be
filling that out anyhow.

This is pretty much for fun; the money involved is petty,
but I want to do it right.

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