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If a minor sells his/her computer at a gain on eBay using a parent's account (with the parent's permission), who pays taxes on the sale price?

I (16 years old) bought a cheap computer for about $20 with my own money a few months ago. I never used it, and identical computers are selling on eBay for about $60 due to the chip shortage. If I sell mine on eBay using my dad's account, the money goes into my parents' bank account, and they write me a check for the price it sold for, who pays taxes?

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  • Did the minor sell the computer at a gain? Usually computers lose value pretty rapidly.
    – littleadv
    Aug 22, 2022 at 23:21
  • @littleadv it was never used and has increased in value significantly due to the chip shortage.
    – Someone
    Aug 22, 2022 at 23:21
  • Well... If it is a minor's computer - then minor pays?
    – littleadv
    Aug 22, 2022 at 23:24
  • That's what I would expect, but it is a parent's account.
    – Someone
    Aug 22, 2022 at 23:24
  • And that matters how?
    – littleadv
    Aug 22, 2022 at 23:25

1 Answer 1

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As I said in the comments, since the property is yours - so is the tax liability.

Since you're a minor there are some quirks to how taxation works. You can learn more about the "Kiddie Tax" reading through the IRS Tax Topic 553 and the IRS Publication 929.

In this case, you're talking about $40 capital gain here. If that's the only gain you have for the entire year then it is well below minimum income threshold at which a tax return is required ($1100 for unearned income for a dependent, see the IRS Pub. 929).

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  • I will have to file taxes because I have over $600 in self employment income from another source.
    – Someone
    Aug 23, 2022 at 0:14
  • @Someone how much more? See here for more specific instructions: irs.gov/publications/p929#en_US_2021_publink1000203747
    – littleadv
    Aug 23, 2022 at 0:16
  • It looks like the kiddie tax does not apply, because my income is under $2200.
    – Someone
    Aug 23, 2022 at 0:16
  • At least $900, likely more.
    – Someone
    Aug 23, 2022 at 0:16
  • Then you just add it to your tax return as a capital gain income
    – littleadv
    Aug 23, 2022 at 0:16

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