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12-29-2014 11:33 PM
Yes, paypal will send a 1099-K if you meet both conditions.
If you don't meet those limits, you're still expected to pay income tax on profits of $400 or more:
12-13-2014 08:45 PM
You're quite welcome!
That's what I'm selling on ebay, online garage sale, stuff around the house. I started out with some little cookbooks, my kid's math flash cards from 1st grade, wheel rims from an old car - stuff like that.
Although I quit selling heavy items like the wheel rims when ebay added fees on postage. That sort of thing went into my first real-live garage sale I had last Nov 1st. I've already started getting ready for a larger spring garage sale, now that I've gotten my feet wet. Times change, I used to donate everything to charity.
12-13-2014 08:31 PM
Thanks! Long time ebayer here, first time poster. I know my join date says '14 but I have had older accounts going back to 2001 roughly
PS Online garage sale? Sounds fun!
12-13-2014 08:12 PM
Welcome to the part time seller's board, blaze!
anonymoose9 doesn't post much, so I'll answer instead - you are correct, if it's a loss, you don't pay taxes.
Also, I believe hondamedic posted a good link a few pages back to the IRS site:
Read the "online garage sale" section at the top.
12-13-2014 06:08 PM - edited 12-13-2014 06:08 PM
How is it income? Just because you sell something on ebay, doesnt mean it is classified as income.
Example, I pay $10 for a shirt and sell it for $5. That is a $5 loss. How is that income?
Can you link to any specific government source that says we have to report ALL sales AS income?
06-16-2014 02:43 AM
There is a LOT of craziness, misinformation, panic, dread and confusion about the IRS and PayPal/eBay. After a LOT of searching because I'm thinking of selling again, this is what I found:
-There is NO info on the IRS site that specifically mentions PayPal...of course not.
-Searching Google, I found a PayPal page written in 2011...
"PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:
You may be asked to add your tax ID number, such as a Social Security Number (SSN) or Employer Identification Number (EIN), to your existing account(s), if you don’t already have one on file.
If you cross the IRS thresholds in 2012, PayPal will send Form 1099-K to you and the IRS for the 2012 tax year in early 2013."
-Why did some of you get letters from the IRS when you didn't come near the TWO specifications listed above??? My only guess...THEY are the IRS. https://cms.paypal.com/us/cgi-bin/marketingweb?cmd
-Doing a search today for Internal Revenue Code (IRC) Section 6050W at the top of the PayPal page, this is what I found:
Now that I've depressed myself and most of you, let's hope we don't continue to starve!
05-12-2014 06:29 PM
All income from eBay sales is taxable, 1099 or not. But the IRS generally doesn't care about a few sales made a year.
There should be no reason that you are paying double taxes on items sold. If you fill out a Schedule C, you can write off your acquisition and selling costs, and only pay taxes on your profit. That's as it should be, since any profit is a capital gain.
eBay and PayPal do have paid lobbyists: http://www.ebaymainstreet.com/
05-12-2014 02:02 PM
typical response from a company man.
Expect a 1099 from ANY & ALL sales.
If you sell on craigslist, you can avoid this, BUT
You also risk being ripped off in buying goods (paypal & eBay offer seller protection)
and you have to deal with the local public on craigslist, unless you offer to sell outside your locality and accept money orders, cashier's checks or personal checks.
What I hate is that even though I bought and paid taxes on new stuff, when I sell it, it gets taxed again!
Paypal & eBay should have paid lobbyists/politicians more to avoid this!!! It used to be you would not get a 1099 unless you sold $20,000 or more. But now, expect to get one for any sales, period!
03-03-2014 10:44 AM
now that you've posted on this thread the IRS is going to be looking at you very closely !
NOT !!! .................................................
01-07-2014 02:56 AM
Good morning Barbara and welcome to The Part Timers Forum.
There is no need to defend your actions here. While I'm not a tax adviser, I do recommend you review these help pages, you might be surprised to find out you're fine and dandy!
Hope this helps!
01-07-2014 12:22 AM
I just started selling a little bit again after several years. I didn't report my income from ebay then and I won't report it now. I do not have an ebay store - if I did I would expect there would be reporting requirements. I am just an ordinary citizen selling something I already own. I am converting an asset from a non-cash form to cash. I am not receiving an income. If I have a yard sale every weekend am I supposed to report that conversion of my assets to the IRS as income. To me this is no different, except I don't have to pay fees to sell from my front yard.
01-06-2014 01:05 PM - edited 01-06-2014 01:05 PM
I honestly don't see why our sales aren't being reported for us. How much do you want to bet half the sellers here are unaware of this taxation? I didn't know about it until I was browsing on here just today!! Luckily though I don't meet the said criteria for the tax.
They should be doing the work for us. Plus ebay themselves get 10% of every transaction which is ridiculous as is. To make it easier, why doesn't ebay link us to a 1099 when we begin selling and add a deduction for tax upon monthly seller fees?? Common sense you'd think? No, life is always confusing. Always has been.
Enough ranting for me