We hear all the time about people selling their stockpiles and the controversy of whether if its legal or not. I’m hoping to clear up some of the questions that come along with, “Is it Legal”?
IS IT LEGAL TO SELL YOUR STOCKPILE?
YES it is legal to sell your stockpile items. However, DO NOT sell any items that have been recalled or is past their expiration date.
On March 19, 2013, in a 6-3 decision, the Supreme Court issued it’s opinion on the First Sale Doctrine. The first sale doctrine provides that anyone who purchases a branded item has a right to resell that item in an unchanged state. This means that sellers who do no more than stock, display and resell a genuine article bearing a true mark are generally protected from claims of intellectual property infringement and thus seller suspensions by the essence of the first sale doctrine. Essentially, once a product is legally purchased, the first sale doctrine gives the owner the right to sell that product to whomever they wish. Also, Chief Justice John G. Roberts Jr. of the Supreme Court wrote that, “The purchaser and all subsequent owners are free to use or resell the product just like any other item of personal property, without fear of an infringement lawsuit.”
Ownership became YOURS when you were at the register and finalized a completely legal purchase. This includes if you purchased the items using coupons, cash, credit cards and even EBT cards. Again, as long as the items were purchased in a legal manner. Ownership of those said items remains solely yours to do with as you see fit.
Think about Ebay, Amazon, Craigslist, Yard Sales, Flea Markets, Thrift Stores, Consignment Shops, they wouldn’t exist if it was illegal to sell items that YOU own.
DO I HAVE TO REPORT THE MONEY I MAKE FROM SELLING MY STOCKPILE?
While most people are aware they must include wages, salaries, interest, dividends, tips and commissions as income on their tax returns, many don’t realize that they must also report most other income, such as:
- cash earned from side jobs,
- barter exchanges of goods or services,
- awards, prizes, contest winnings and
- gambling proceeds.
So whether you do this as a hobby or as a business you would have to file claims once the amount is over $400.00 in a one year time span.
IF I DONATE ITEMS CAN I CLAIM THAT ON MY TAXES?
YES, and it actually pays to donate. Many charities or local food banks will give you a donation receipt. If they don’t make sure you keep track of your donations. You can claim the retail value of the product (without coupons). If you paid $2.99 for Tide on sale and with a coupon, but regular price is $9.99, you can claim the full amount of the $9.99.
Here’s what you need to do:
- Keep track of each item, including who you donated it to
- Estimate how much each product or donation was worth
- Fill out Form 8283 when you file your taxes, and attach it to your return
WYD / TOO! Groups has always supported and taken the stance with the letter of the law with regards to selling your items. The fact that the Supreme Court has made a ruling in this favor of doing just that, we say have fun selling your items and making some money!
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