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New Tax Laws

Anyone else thinking of closing their Ebay stores and sales due to the new tax law? $600 is a low threshold for taxes. For me I don't make enough for the loss of taxes

Message 1 of 101
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Re: New Tax Laws

Maybe a review of rule number 4 of the rules of engagement for the discussion board would help some understand.

Message 76 of 101
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Re: New Tax Laws


@geekbeak wrote:

...  My wife loves garage and estate sales which is a break even hobby at best - drive all over town, spend $50, hopefully recoup it selling a couple of items  and donate the rest to goodwill.  We kill some time, have some fun, circulate a few things back to those who want them but we don't profit from it.  We won't be doing that anymore because it's not worth the bookkeeping hassle for what I've already said is a break even hobby at best...

 


But since it's something you both enjoy, why give it up over a bit of book- and record-keeping?  Just think of the added mental stimulation as another benefit of your hobby. 

 

Anyone as literate and computer-literate as you obviously are can easily keep track of income and outgo for your eBay sales.  Use a spreadsheet on your computer, or just use a notebook and a shoebox.  It really is not hard.  It's not like you have employees or need to present an annual general report to shareholders. 

 

At the end of the year, give this info to whoever prepares your taxes.  If you prepare your own, all the usual programs (TurboTax, TaxSlayer, TaxAct, etc.) will step you right through it.

 

From what you've said, it's unlikely that your eBay income will cost you much, if anything, in taxes, or lift you into the next tax bracket.  So why give up months of fun over a few hours of tedium?

 

=

Message 77 of 101
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Re: New Tax Laws

Fair enough, point taken.  It comes down to a personal decision based on one's own circumstances.  My response was to the person who said very succintly that  "A lot of it is the hassle factor; between the listing, posting, packing, shipping, returns, refunds, and all the other time hits inherent of selling on eBay" , this adds just another layer of work and complexity.    

 

Everyone's situation is different.  I am not a real business and I don't expect sympathy from the real eBayers.  I am in what is probably a tiny minority of people who EXPECT to operate at a loss and eBay is just probably not for me anymore, at least not beyond $600 a year.  My wife is ill.  She loves the shopping and also likes to research our "finds" online when we get home.  The rest falls to me.  I get a kick out of it but it's mostly just a labor of love that I do for her.  You'd be surprised at the joy she can have researching what's in a $5 jar of vintage buttons.  

 

 I just found it a little irksome that I came to the forum seeking information and found that an intelligent question might be responded to with "tax shirker!"  I spend $50 - $200 and drive 150 miles a weekend and maybe recoup $50 or $75 in a good week.  I KNOW I'm not making any money.

 

And the garage and closet cleaning is a whole other subject entirely...

Message 78 of 101
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Re: New Tax Laws

 

@geekbeak 

 

I'm sorry to hear that your wife is unwell, and I do get it that you may decide that adding another layer to your hobby is more than you want to deal with. 

 

If you wife loves research, maybe she'd enjoy sometimes doing it for others.  Tell her to take a gander at other forums here, such as the Collectibles & Art board, where people ask for help to identify all sorts of interesting stuff -- buttons, vases, flatware, silver,  photos, carvings, books, textiles, souvenirs, prints, baskets, lamps, figurines, whimsies and whatnots and you-name-its.   She might find it gratifying to put her research skills to work that way.  

 

Just a thought.

 

https://community.ebay.com/t5/Collectibles-Art/bd-p/29

 

=

 

 

Message 79 of 101
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Re: New Tax Laws


@geekbeak wrote:

Fair enough, point taken.  It comes down to a personal decision based on one's own circumstances.  My response was to the person who said very succintly that  "A lot of it is the hassle factor; between the listing, posting, packing, shipping, returns, refunds, and all the other time hits inherent of selling on eBay" , this adds just another layer of work and complexity.    

 

Everyone's situation is different.  I am not a real business and I don't expect sympathy from the real eBayers.  I am in what is probably a tiny minority of people who EXPECT to operate at a loss and eBay is just probably not for me anymore, at least not beyond $600 a year.  My wife is ill.  She loves the shopping and also likes to research our "finds" online when we get home.  The rest falls to me.  I get a kick out of it but it's mostly just a labor of love that I do for her.  You'd be surprised at the joy she can have researching what's in a $5 jar of vintage buttons.  

 

 I just found it a little irksome that I came to the forum seeking information and found that an intelligent question might be responded to with "tax shirker!"  I spend $50 - $200 and drive 150 miles a weekend and maybe recoup $50 or $75 in a good week.  I KNOW I'm not making any money.

 

And the garage and closet cleaning is a whole other subject entirely...


I understand the layer, but I've said this here before - I can barely keep track of the money in my pocket.  Back in the cash days I used to put a certain amount of cash in an envelope in my sock drawer and that was it for the week (I know, very sophisticated!).  I don't know how many times I'd find myself running out early and be living on ramen noodles to try to make it stretch, then find a $20 bill "I didn't know I had" or $10 I'd left in my shoe or whatever. Oh, so that's where that money went! 

 

If someone that bad with money can deal with a little book work, trust me, you can do it blindfolded on your head whistling "Backfield in Motion."  I actually found it an interesting puzzle (I'm good at math, just bad with money) and pretty easy.  I think you'll be fine with your good work and would keep going.  Also, with all the travel and the like you do, it's BEGGING to be deducted, you'll have receipts.  I doubt it's more than an hour a week (if that) to keep track.

 

At any rate, I hope you find a solution, but people are really making this a lot harder than it needs to be so I hope you don't feel discouraged.


“The most common way people give up their power is by thinking they don’t have any.”
— Alice Walker

#freedomtoread
#readbannedbooks
Message 80 of 101
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Re: New Tax Laws

I don't have a problem as selling used personal items a loss isn't taxable income

Message 81 of 101
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Re: New Tax Laws

I’m scared to sell items on eBay going forward. A lot of items I sell I get from flee markets with no receipt or are items I previously purchased many years ago most items are sold at less than there original value. When my total sales gets reported and I have no proof of what I paid for these items or how much driving around I did to find them and then cost of shipping I’m operating at a loss. The US government messed up a fun hobby I had listing treasure hunts maybe they will understand when I file for unemployment because they closed my small buisness

Message 82 of 101
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Re: New Tax Laws

@tls32281  I've cleared estates as well as selling older items with no receipts - you use best estimate for these items - do a little comparison, jot it down - you're supposed to make a 'good faith' effort.  I did this for several years while I took care of these family estates and submitted them as COGs.  It's pretty simple book work, and if you do it right, you can get a deduction for all of those miles, all of that shipping.

 

Seems like you're leaving money on the table if you've been burning up miles to obtain items and not declaring it, plus shipping (also deductible from total revenue) and the like.


“The most common way people give up their power is by thinking they don’t have any.”
— Alice Walker

#freedomtoread
#readbannedbooks
Message 83 of 101
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Re: New Tax Laws

You say "a fun hobby I had listing treasure hunts"....then you say "maybe they will understand when I file for unemployment because they closed my small buisness"

If you are a business, and it matters not whether a small business or a large business, declaring income from sales is something that should have been done from day 1 of selling....and it matters not whether you are selling on eBay or elsewhere...income is income.

It's like yard sales/flea markets...folks that have them/participate in them/set up for them/operate them on a consistent/regular basis aren't "hobby sellers"...they are "a business"

Message 84 of 101
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Re: New Tax Laws

  I'm 72 years old now.  I've been I selling off things that I have discovered in the process of seasonal housecleaning, using the eBay venue for sort of a pre-need estate sale.

  I like paying my fair share. If I owe it I'll pay it.  I just wish there was some way that we could just pay all the taxes up front, at the time of sale, and be done with it.

 So, will I be getting a 1099 from eBay in 2022 for what I sold (>$600) in 2021?

 

Truth is Beauty.

Beauty is in the Eye of the Beholder.

Therefore, Truth is anything you can get Twelve Fools to agree on.

 

( Does anybody know who it was that said that? )

Message 85 of 101
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Re: New Tax Laws


@mrdutch1001 wrote:

 

It's like yard sales/flea markets...folks that have them/participate in them/set up for them/operate them on a consistent/regular basis aren't "hobby sellers"...they are "a business"


Where my sister lives, you're allowed to have two yard/garage sales a year for people who are genuinely just trying to get rid of old stuff. More than that, however, and you're considered to be running a business and have to file for a permit with the county-- which is perfectly fair.

Message 86 of 101
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Re: New Tax Laws

@quackslikeaduck wrote:

“Truth is Beauty.

Beauty is in the Eye of the Beholder.

Therefore, Truth is anything you can get Twelve Fools to agree on.

 

( Does anybody know who it was that said that? )”

 

It is a mish-mash of other quotes. “Truth is beauty, beauty truth—that is all” is from John Keats’ Ode to a Grecian Urn.

 

“Beauty is in the eye of the beholder” is attributed to Margaret Wolfe Hungerford.

 

Sorry, don’t know who wrote the last phrase or who might have combined them all.

Message 87 of 101
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Re: New Tax Laws

@quackslikeaduck 

 

Missouri may be one of states that chose to enact the lower threshold for the 2021 tax year. 
Please talk with a tax professional in your jurisdiction for the best advice for your situation. 

No one asked, but I am looking forward to the day when having feedback default sorted by relevance seems right.
Message 88 of 101
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Re: New Tax Laws

Actually that was done be design. Millionaires such as Bezos and Zuckerburg have lawyers at their disposal to fight for every penny. You and I don't, so with their limited resources who do you think they come after. Always the small folks getting stepped on.

 

Message 89 of 101
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Re: New Tax Laws

Thats all you hear when it comes to  taxing Billionaires is "we can't do it,it would just be passed on to consumers,we have to LOWER their rate"  Who do they think we sell to, martians? Won't we pass those costs on also?. I don't mind paying taxes, I pay plenty,it just bothers me that not one person in Congress or the Senate,not one from Rand Paul to Marge Greene to Pelosi to A.O.C. stood up for the little people and said maybe they deserve a break. They all cheered when the last tax break for millionaires passed as for us ....crickets. Shows every one of them are the exact same. We have no one in government on our side.

Message 90 of 101
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