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03-11-2015 11:14 AM
I received a form from PayPal stating I was paid $38,000.00 in 2014 Then I received an income tax bill for $14,000.00 for unreported income and fines. I never received this in 2013,2012,2011 and etc. I also spent about the same for supplies and stock, postage and etc. My net income came to $2.500.00 I do ebay for fun and it's my social outlet after a hard day at my full time job. I replied to the letter by sending them the 5 pounds of receipts and a copy of every transaction. I pray I do not owe the entire $14k they are seeking. Nice how our govermant is spending time investigating hard working Americans who only want to make a few bucks and a few friends on Ebay. Why don't they go after and spend money on the real problems in this country like terrorists, drugs, murderers, rapists, and etcccccc. Just venting. Thanks for listening - Sandras Vintage Time - my ebay store
03-01-2015 06:56 PM
Although now that I think of it, some of these credit card deals with points & cash back credit & dining gift cards?
I bet those things will get taxed in the next few years.
Depends on how influential the Amazon Prime lobbyists are.
03-01-2015 01:20 PM
No, because you're never going to make a profit trading games at Gamestop. You're always going to have a loss.
Gamestop is the one that's making profit, not you.
03-01-2015 06:45 AM
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 !!! .................................................