Garage Sale Tax Looming In New York State?
Summer is going to begin, officially, in New York State in just a few days and that means warmer weather, allergies and yard sale season! If you have lots of stuff that has piled up after the long winter and need more space, a yard/garage sale is a great way to purge and make some money.
The things that you can find at a yard sale are often unique and potentially worth a good deal of money. The saying "one person's trash is another's treasure" is very true and for someone with a trained eye, there may be a gem waiting in all that stuff.
As you gather up the old toys, and clothes and tools that you are about to sell, what does New York State have in mind for you? The cash that you make from that sale is technically income but how much, if any, are you required to claim?
According to New York State law:
Most garage sales are not subject to the sales tax registration requirements and the sellers are usually not required to collect sales tax. However, Tax Law section 1115(a)(18) specifically provides that if certain conditions are not met, you may need to collect sales tax, or possibly register for sales tax purposes.
SENDING AN ITEM?
These days, many people are finding success with selling things online on a variety of sites which may include Facebook Marketplace, Craigslist and others. Let's say you sell something and you are asked to ship the item? There are some cases in which you may be required to collect taxes.
The purchaser must pick up the items at your home. If you deliver or mail an item to an address in New York State, you must collect the tax on the sale price of the item.
The weather may not feel like spring as heavy, wet snow is falling over much of the New York City/Capital regions in New York State. But as we know, the weather can change any minute and it is time to plan ahead for those yard sales! It is a great way to create some space and make a little extra cash.