Do Massachusetts Residents Have To Pay Taxes After Having A Yard Sale?
The spring and good weather have arrived, and with that comes yard sale season. I was driving back to work from my lunch break today and saw some traffic stopped on my street. Yup, yard sale traffic! Or maybe it was some parked cars that made it look all congested. Anyway...
I have never held a yard sale, I prefer to either donate my old stuff or just chuck it; however, yard sales or "garage" sales can really be lucrative for some people.
BUT DO MASSACHUSETTS RESIDENTS HAVE TO PAY TAXES ON THEIR YARD SALE EARNINGS?
Yes and No.
So, here's the deal. It's all about capital gains. You need to report any capital gains to the IRS, this is pretty much common knowledge.
Most of the items sold at your yard sale you probably already purchased years ago for more than what you are asking for them now, so, technically this is not capital gain.
For example, you bought an inflatable pool for $300 five years ago, now you sold it for $75, even though you've netted $75 from the sale, you need not to report this to the IRS.
However, if you inherit an item and then sell it later, this is an example of capital gain, therefore you must report it to the IRS, according to hrblock.com.
As far as patronizing a yard sale or garage sale, Massachusetts does not require one to pay sales tax on items purchased.
Happy Yard Sale Season!
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