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She would only have to pay income taxes if there were a profit on the sale of the personal property.
Since yard or tag sales are basically 'casual sales of personal property', they don't qualify as a trade or business.
so if she bought a table for say 200 dollars and then sold it for 3oo she would be liabel for the one hundred? but if she ssold the same table for 50 dollars there would be not tax obligation/ is that right?
Most of the items that are sold were purchased or acquired at a cost far in excess of what the yard or tag sale will bring.
correct, so in that case, there would eb no requirement for her to pay taxes on the proceeds from those items/
Yes except you would look at the entire sale, not each item. Plus if any of the property was inherited, her likely tax basis (cost) would be equal to the fair market value at the date of death of the decedent;
ok, just read the above, sorry font is so tiny..
If the property was acquired by gift then her tax basis would be equal to whatever the donor's basis was in the property.
so if the enitre sales yields a faily large amount ( she has a large house) but it still far less than the amount she paid per item, and none of it was inheritied, there would be no tax burden?
ok, thank you very much! that answers my question.