Garage sales are subject to Income Taxes
I received a phone call from a loved one over the weekend. I was asked if the sale of some EBAY items were subject to federal income taxes. The circumstances dealt with getting rid of some clutter in their home.
Yes, those sales, whether they be garage sales or EBAY sales are subject to income tax.
But how would the government know should you decide not to declare those monies received? Well, if the amounts aren't material then it might be difficult to detect but consider the IRS does randomly audit a taxpayer.
Is it really worth it to risk penalties, interest or worse to try and save a couple of bucks on taxes by not declaring income?
I am a CPA and provide bookkeeping, payroll, taxes and more. We offer a free initial visit and look forward to serving your business needs.
Richard J. Garcia | 11/27/2011