Selling on Facebook Marketplace: Avoid Scams and Know the Tax Rule
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Amazon Music Key Takeaways
- Selling unused items on platforms like Facebook Marketplace is a great way to declutter your space and turn hidden clutter into quick cash.
- When selling online, always prioritize safety by meeting in public places, using secure payment methods, and watching out for common scams.
- Many casual sellers are surprised to learn that a resale profit can be considered taxable income under current IRS reporting guidelines.
- Understanding the Facebook Marketplace tax rule helps you keep accurate records so you are never caught off guard at tax time.
- Taking on a small financial challenge, like selling just one item for $75 this week, can build the momentum you need to become more financially confident.
In today's episode, Ralph Estep Jr. and Juliet focus on selling your unused stuff without getting scammed or surprised at tax time, plus an Election Day money check and a listener question about negotiating a job offer.
In This Episode
✓ Cost of living is the top voter concern on Election Day
✓ 72% of Gen Z investors changed course before the midterms, versus 17% of baby boomers
✓ Stocks have risen in the 12 months after all 19 midterms since 1950
✓ Job openings rise to 7.5 million in September
✓ Should you negotiate a job offer that pays 48% more than your current job?
✓ The closet test, pricing, and how to avoid payment scams
✓ Why a resale profit is taxable income
✓ This week's money move: sell one item for $75
If you have things sitting in a closet or garage, this episode shows how to turn them into cash safely.
Resources
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Companies Mentioned
Reuters
Ipsos
NBC
Pew Research Center
The Associated Press
J.P. Morgan
Standard & Poor's
Kalshi
Polymarket
TikTok
YouTube
Facebook Marketplace
eBay
Poshmark
Venmo
Cash App
Zelle
UPS
Rolex
Hermès
Tiffany
Wawa
Google Meet
Dale Carnegie
School of Podcasting
Pokémon
Frequently Asked Questions
What is the Facebook Marketplace tax rule?
The IRS requires payment platforms to issue a Form 1099-K if your business transactions exceed certain thresholds, meaning any profit made from selling goods may be subject to income tax reporting.
Are garage sale and marketplace sales always taxable?
Not necessarily. If you are selling personal items for less than you originally paid for them—meaning you took a loss—that specific transaction is generally not taxable income.
How can I avoid scams when selling on Facebook Marketplace?
Always meet buyers in safe, public locations like police station parking lots, verify cash payments, and beware of common digital payment scams involving fake confirmation screenshots or overpayment requests.
