Potential Flipper Opportunity

[Sunny Arizona]

Way to spoil a good thing-:)

Originally Posted by johneh

Regardless of whether it's the right thing to do or not, no one that's going to sell a few watches as a one off event is ever going to do this. If you sell it for more than you paid for it (like in this case) you are obligated to declare it on your taxes, although people doing this is also highly unlikely.

If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. One key here is personal use, leave the stickers on it and wear it around the house for a few hours then decide you don't like it. The other key phrase here is "capital gain," and that's explained by this example:

You sold a watch online for $10,000. You bought the watch for $6,500. You'd need to report your $3,500 gain as a capital gain on Schedule D (Form 1040).