Garage sale legal do's and don'ts - WNEM TV 5

Garage sale legal do's and don'ts

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If you plan on hosting a garage sale, it’s not all about sorting and tagging.

Michigan Attorney General Bill Schuette has weighed in on some of the legal issues tied to finding your old stuff a new home.

First, you are responsible for making sure that everything you sell is safe. It’s also illegal to sell recalled products. You can check for recalls here.

Another common question is whether you need a permit to roll out the racks of clothes.

That one is a little trickier.

Many Michigan municipalities require permits to hold a garage sale. They can range from $1 to more than $35.

Some regulations may also limit the number of sales you can have a year, and how long you can hold them for.  So, make sure you check before you get started.

But the good news is, you will probably not be taxed on your profits. Unless you plan on holding yard sales regularly, or as a business, that income is not required to be reported.

But if you sell something for more than you paid for it, such as art, antiques, etc., you will generally be required to report the gain as taxable income.

Also, don’t worry about a sales tax. Because garage sales are considered “isolated” sales, you don’t need to charge it.

Happy shopping!

See the full explainer from the Attorney General’s office by clicking here.

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