Taxes on Auctions

[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. I would imagine that if it's a home business, the losses would be tax deductible.

[terry1156]

Re: Taxes on Auctions

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.

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.