How much money can I make on garage sales before I have to report it on my income tax?

And also, how much money could one get, say as a gift from a friend, before it must be reported on income tax?

How much money can I make on garage sales before I have to report it on my income tax?
The income from garage sales does not have to be reported, regardless of amount. It is presumed that when you pruchased the goods that you are selling you already paid sales tax on them. So to retax these goods is a form of double taxation.
Reply:the recipient does not pay any tax on gifts - the payer does and the limit is now $12000 per year before the payer has to pat any gift tax - garage sales? - you're probably losing money on every thing you sell - if it's not an actual regular business - don't worry about it
Reply:Technically, if you had to pay income tax on the proceeds of a garage sale, you could just write everything off. Like for instance you sell a pair of end tables for $25. I very much doubt that you bought them for less than $25. Most likely, you sold them at a loss. On the same token, I wouldn't report to the IRS that I lost money by holding Garage sales, but if the question ever came up that's what you'd say.
Reply:Your a great American! I think you will be the only person in history to pay tax on a yard sale.
Reply:Through 07 you can give or receive a gift of up to 12 k tax free. As for garage sales; you are selling items for pennies compared to what you paid for them; you are taking a loss beyond belief; you are not making a profit; there is nothing to report or pay taxes on.
Reply:Usually at a garage sale, you're selling your old stuff, for less than you originally paid for it, so there isn't any gain to be taxed on. If you are doing this as a business, buying items for resale, then if you make over $400 a year you'd have to file a tax return on it, and if you file a return for some other reason, you have to include it from the first dollar.





You can get any amount as a gift without paying tax on it. If it's over $12,000 for the year, then the giver would have to file a gift tax return, and possibly pay a gift tax.





But trying to disguise getting paid for something, merchandise, or work, as a "gift", is tax fraud and can land you in major trouble.
Reply:You can receive up to $10,000 a year as a "gift" before you must report it. Actually, I think the person giving the money reports it, not you.





As for the garage sale.... I didn't know you had to report that at all. I mean, unless you're having one every weekend and making hundreds of dollars. That's YOUR stuff that you already payed for, so.... I honestly don't know the answer to that one. Its not considered "income".
Reply:Gifts are never taxable to the recipient.





If you have make above the filing minimums (they vary based on circumstances) you must report all taxable income.





Note that garage sale receipts are usually not taxable. That is because the usual transaction results in the sale of an old personal item for less than what was originally paid for it, which is a loss.





Losses on the sale of personal items are not deductible.
Reply:Your going to volunteer this information to the IRS?