An important topic that we reported to our readers on last year; Many people have asked whether or not they have to report income from a garage sale when filing your taxes and the correct answer is yes.
Additionally, many people having sales cannot benefit from writing off any business expenses or losses unless it cost you upfront to list a classified ad in a local paper or create advertising for your sale.
It’s right to argue though why taxes should be paid on income from a yard sale when in fact the items were initially purchased with income already taxed or that you paid sales tax on. Also, most garage sale finds are sold for much less than the original purchase price, thereby incurring a loss, not a profit. It’s up to each tag sale organizer to report these “profits” on their taxes, however, keeping in mind that most sale transactions are cash only, this becomes much more difficult to track, especially when profits are minimal.
Alternatively, you could consider donating your items to your local Good Will Store or Salvation Army. Such organizations will give you an itemized receipt where you can evaluate the value of your donation and write it off on your taxes.
We encourage all of our members to donate unsold items, it will leave you with a good feeling of being able to help out the less fortunate.