eBay and taxes

[BosnMate]

I have a heavy gold Masonic ring with a large diamond that cost $6,000 when new. I'm not naive enough to think it will sell for as much as was paid for it, or even more, although it was purchased when gold was around $300 per oz. Lets say I got half what was paid for it on eBay, would taxes be taken out or would I have to prove to the IRS that it sold for less than the purchase price.

 

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[mkulltra]

You wouldn't have to pay any taxes on it for selling it on ebay. You only pay taxes if you sell over $20,000 and 200 items. (Thanks Dig)

 

[jerseyben]

Incorrect.

The 200 item/$20,000 rule applies to whether or not Paypal will file a 1099-K.

Regarding personal income taxes, I would HIGHLY recommend you consult a tax professional or accountant. Do not rely on what strangers on the internet tell you for stuff like that or legal advice.

 

[kimosarbe]

from the first time you sell on e-bay they total up your sales and saves the total. for taxes in the future. check it out in pay pal.

 

[mjlalt]

Profit on personal property sale is taxable. Since you are not making money on it and since paypal would not send you a 1099-K ( unless you hit the magic 200 item and $20,000 threshold) I wouldn't worry about it.

 

[clovis97]

I have a heavy gold Masonic ring with a large diamond that cost $6,000 when new. I'm not naive enough to think it will sell for as much as was paid for it, or even more, although it was purchased when gold was around $300 per oz. Lets say I got half what was paid for it on eBay, would taxes be taken out or would I have to prove to the IRS that it sold for less than the purchase price.

If you do sell it on ebay, it needs to be sent via registered mail.

Everyone in the postal system will have to sign for the package along the way...every clerk, every OTR driver, every sorter, every postal carrier that handles the package has to sign for it.

There is too much risk sending a $3,000 ring any other way.
.

 

[BosnMate]

Thanks for all the information, and especially the registered mail thing, I hadn't thought about that. If I decide to sell, I'll try locally first, just to avoid having to mail it. Thanks to all who answered.

 

[mjlalt]

When you ship registered mail they ink stamp it all over so be sure to use "gummed brown paper tape" . The registered mail ink stamp will not work on normal packing tape.