Do You Have to Pay Tax If You Sell on Facebook?

Taxes on Personal Items Sold

  • Generally, sell two items in one year, get a seller’s permit. Register on state website, easy.
  • Collect tax if business has state presence. Otherwise, don’t.
  • Used items sold at a loss owe no taxes. But if sold for more than acquired, pay on the profit.
  • Earn $600+ from sales? File a return in 2023 for more 1099-K forms.
  • Report online sales.
  • Special organizations and foreign companies sell without value added tax.
  • Sell used personal items for less than original cost, no income tax. Sell for more, pay capital gains taxes on surplus.

Tax Obligations for Online Sales

  • Retail or service owners report in business income.
  • Online sellers in states without internet sales tax: Alaska, Delaware.
  • 2021 single standard deduction, under 65 is $12,550. No filing under that income.

Reporting Requirements for eBay and Other Platforms

  • $20,000 and 200 sales on eBay and others to get a form. Auction income may include income tax.

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