I sold one item for a fairly significant amount of money for me, a few thousand dollars. The transaction will include automatically calculated sales tax, as well as a partial trade to reduce the amount of money that I actually receive.

With that said, do I claim the remainder on taxes as income? Or is that not necessary?

Thanks.

By tax code, you would only pay taxes on the profits, not the sale amount.

That would be based upon how much you paid for the original item, plus any accessories or modifications.

Basically taxes would be sales price (including value of the trade) less the cost of the item.

If you bought it new and sold it for less than you originally paid, no profit, no taxes.

FGB