Wait, you sold your Instagram account and now you're wondering about taxes? Yeah, that's... actually a really good question. Most people don't think about the tax stuff until after they've already made the sale. Smart of you to ask though.

The Short Answer: Yes, You Probably Do

Here's the deal - when you Sell Your Instagram Account, the IRS sees that money as income. Doesn't matter if you built the account from zero followers or bought it somewhere else first. You made money, they want their cut.

The amount you pay depends on how much profit you made. Let's say you spent $500 building your account over time (paying for content, tools, whatever). Then you sold for $2,000. Your taxable income? That's $1,500 right there.

Different Types of Accounts, Same Rules

Whether you Sell Instagram Accounts as a regular business or just got rid of one account, the tax rules stay pretty much the same.

Some people focus on specific niches when they build Series Instagram Accounts - like creating multiple accounts around similar themes. Each sale still counts as taxable income.

Others might develop Babes Instagram Accounts in certain markets. Again, the same tax situation applies to every single sale.

The IRS doesn't really care what your account was about. They just see: you had something, you sold it, you made money.

What Counts as Business vs Personal

This part gets a bit tricky. Were you buying and selling accounts regularly? Then you're probably running a business. That means different tax forms and possibly different rates.

Just sold your personal account that you'd been running for years? That might count as a capital gain instead. Usually means lower tax rates, which is nice.

The line between business and personal gets blurry sometimes. Keep good records of everything - when you started the account, how much you spent on it, and why you sold it.

Keep Track of Your Expenses

You can write off money you spent building the account. Paid for photo editing software? That counts. Bought props for content? Yep, that too.

Even small stuff adds up. Domain names, scheduling tools, stock photos. Save those receipts because they reduce how much tax you'll owe.

When Do You Actually Pay

You'll report the sale on your tax return for the year in which you received payment. So, if you sold in December 2024 but didn't receive payment until January 2025, you'd report it on your 2025 tax return.

Some people need to pay quarterly taxes if they're making regular income from selling accounts. That's something to check with a tax person about.

Bottom Line

Selling social media accounts creates real tax obligations. The government wants to know about that money, and they'll eventually find out if you don't report it. Keep good records, save your receipts, and maybe talk to someone who knows tax stuff if you're selling accounts regularly. Better safe than sorry when it comes to the IRS.

Do I Pay Taxes After Selling My Instagram?