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Old 01-09-2005, 06:52 AM
terry1156 terry1156 is offline
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Default Re: Taxes on Auctions

Quote:
Originally Posted by amomof4
If you buy something new or used and u sell it for less than u paid for it, u don't have to pay taxes on it because it is actually a loss and not a gain.
That is correct.

Quote:
Originally Posted by amomof4
I would imagine that if it's a home business, the losses would be tax deductible.
The losses are tax deductible against any gains you have made. For example, if you lost $10 on the transaction but had gains in the year of $200 with other things you sold, then you could deduct it against those gains. If on the other hand you had a $10 loss and didn't sell anything for a gain, then there is nothing to deduct it against on your taxes.
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