Schedule C selling personal items online
do I use Schedule C business even if I don’t own a business and am just listing unwanted items from my closet through a one time purge?
Do I list the original price of an item as an expense to help calculate the loss?
Do I need to submit any documentation such as pictures of the price tag of the item that sold for a loss?
What if it was a used item that doesn’t have he original price tag or sales receipt?
Answers
-
Hello,
There are two parts to your question.
If you are selling personal items online, you are not eligible for a deduction for a loss even though you likely paid more than what you sold it for. You do not need to set up a Schedule C business for a one time occurrence.
If you want to set up as a business of buying and selling things as a business, you would have to start buying items for business inventory and then reselling it. You would keep documentation of things purchased and things sold, but documentation with your tax return isn't required, only required for you to keep the record of the purchase and sale.
