You only need to report personal items that you sold if they were sold for more than what you originally paid. Let's say you purchased a vintage nut grinder for $5 in 1972 and recently sold it for $75 at a yard sale. In that case, you'd have to report the $70 profit as an investment sale.
If you sell at a gain (that is, you get more than you paid for the item), you have income.
In the rare situation where you sold a personal use asset for more than what you bought it for, then you would report the sale on your tax return and you would report capital gain income for the amount you sold the asset above what you paid for the asset.
Whether or not you receive a Form 1099-K, you must still report any income on your tax return. This includes payments for any: Goods you sell, including personal items such as clothing or furniture. Services you provide.
The new "$600 rule"
Under the new rules set forth by the IRS, if you got paid more than $600 for the transaction of goods and services through third-party payment platforms, you will receive a 1099-K for reporting the income.
The IRS requires you to report all your income; hobby income is no exception. You pay taxes on your income whether you profit from a hobby or a business. However, one key difference is that taxpayers with hobby income (not considered business income) can avoid self-employment taxes.
Profiting off the sale of a business asset is considered taxable income, and the IRS applies the capital gain taxes depending on how long you've owned the equipment.
Personal selling involves person-to-person communication, which requires interpersonal skills and expertise to persuade leads to buy products and services. There are many different types of personal selling, including retail sales, business-to-business sales, and telemarketing.
Personal property is any property that's not land and all things that are permanently attached to it such as real estate. Examples include cars, livestock, and equipment.
For example, money from odd jobs, baby-sitting, or a one-time “gift” if it is not more than $30 in three months [7 C.F.R. § 273.9(c)(2); MPP § 63-502.2(d)]; or severance pay (unless paid out in regular installments) or vacation pay at termination of job, which should be treated as a lump sum.
Key Takeaways:
Gifts of up to $19,000 in cash are exempt from reporting in 2025. Those who have household employees must report cash payments that exceed $2,800 in 2025. All cash income should be reported on federal tax returns, regardless of whether a person receives a W-2 or 1099 Form from the entity that paid them.
If you have items cluttering your home and you need quick cash, local stores, markets, and community sales provide great opportunities to sell your goods directly.
No matter what is sold (it's a treasure to someone) or how often, all taxpayers who make a profit on a sale are obligated to report that money as taxable income.
Profit on business products and services is taxed as ordinary income. However, when you sell a personal item for more than you paid or sell a business asset that has gained value, you will likely need to report the profit as capital gains. You may owe taxes based on the capital gains tax rates for that period.
Although many cash transactions are legitimate, the government can often trace illegal activities through payments reported on complete, accurate Forms 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business PDF. Here are facts on who must file the form, what they must report and how to report it.
THE GOLDEN RULE OF PERSONAL SELLING refers to the sales philosophy of unselfishly treating others as you would like to be treated.
The best personal selling examples today include high-touch sales in luxury goods, consultative selling in B2B tech, personalized follow-ups in real estate, relationship building in finance, in-store personalization in retail, and empathy in healthcare sales.
Generally, all gains are taxable. Going back to the previous example, you purchased a car for $25,000. Then you sell the car later for $30,000. The result is a $5,000 taxable gain.
Personal items sold at a gain
If you receive a Form 1099-K for a personal item sold at a gain, figure and report the gain on both: Form 8949, Sales and other Dispositions of Capital Assets. Schedule D (Form 1040), Capital Gains and Losses.
The main taxes to consider are income tax and sales tax. As a reseller, you pay income tax on your net profit—the amount left after deducting business expenses from your total revenue. This is reported on your tax return, typically using a Schedule C form if you're a sole proprietor.
Regarding you question, how much can you sell before paying tax on your earnings, as a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly. You must file a return if you earn $400 or more in net earnings from your business.
Your hobby is the thing you engage in after work hours and in your spare time, but you also may exchange the results of those hobbies for cash. In the eyes of the government, that hobby income is real income that you may need to claim. The true difference between a hobby and a business comes down to tax law.
Generally, the IRS classifies your business as a hobby, it won't allow you to deduct any expenses or take any loss for it on your tax return. If you have a hobby loss expense that you could otherwise claim as a deductible personal expense, such as the home mortgage deduction, you can claim those expenses in full.