Originally Posted by
sbrower
Selling your stuff that you have already been taxed on (your old couch) is not taxable. So you should NOT put that on your tax return, because that is not income.
But United didn't ban you from having a mileage plus account for failing to pay taxes on a GPU. They did it because selling the GPU (even if you later refunded the money) is against their fraud rules.
The advice was for Sale. The GPU was free (tongue in cheek). The tax thing is used so many times in arguments on this site, so I had to clear things here.
Online sellers, including those selling through online sales websites such as eBay.com and Amazon.com, are responsible for
reporting sales income to the Internal Revenue Service (IRS) in their income tax returns. If you're running a business, that's one thing. But what if you're simply selling a few used items through a community message group, just trying to earn a few bucks? It's important to know when you may owe taxes for your online sales. Learn more about whether you need to report your online sales to the IRS below.
Online 'Garage Sales'
Online sales of personal, used items do not generally have to be reported. Selling your old bicycle on Craigslist is an example of these types of sales. Losses on personal use property are not deductible on online sellers' tax returns. The rule of thumb is that if you used the items and then sold them for less than you bought them for, then
you owe no taxes on the sale. However, if you sold an antique or collectible that had appreciated since you first acquired it, you likely would be on the hook for taxes on the profit.