If you start to gain some money in Online Auctions, and the money is just about the amount you would earn in an actual garage yard sale, then you do not have to report the sale that you've earned. Basically, if you paid more for the items you sold then you don't have to report your sales. Pretty cool, pretty cool. You can also deduct business expenses if you are operating a viable online auction seller business. If you have some appreciated assets such as art, collectibles, antiques, ect. and the sales pricing is more than the cost you are selling at, then you would have a reportable gain which would include business income or capital gains. Also, if you are selling business assets or if you are closing your business then you might have capital gains, ordinary gains or depreciation recaptures to report. Just some tips you might need to know if you want to do business in online auctions.
http://www.irs.gov/businesses/small/industries/article/0,,id=202939,00.html
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