New Tax Laws

[keystone911]

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

[loco4locos]

Does the requirement to pay taxes on $600 income apply to a homeless person who has managed to make $601 selling aluminum cans to a recycler?

[loco4locos]

Does this requirement apply to a homeless person who managed to sell $601 in aluminum cans to a recycle center?

[dq3141]

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@loco4locos wrote:

Does the requirement to pay taxes on $600 income apply to a homeless person who has managed to make $601 selling aluminum cans to a recycler?

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If you think someone with $601 in income and a $12,000+ standard deduction would owe tax, then sure, why not?

[yhlml]

You claim you're tired of tax cheats yet you say."My church never gives receipts according to my accountant."

[bubbempny]

I too have just been selling stuff to empty some closets.   I have also been selling "stuff" for a couple of friends which I will not be able to do now.   The money made on these things is not profit.  Who keeps receipts for "stuff" for so many years.  I'm 86 years old, you figure out if this is a business or just something to do.

[downunder-61]

If a seller doesn't have a receipt or records to establish the cost basis of an item, they can use the Alternative method, which is an estimate of the fair market value at the time the item was acquired. This is described in IRS Publication 551: Basis of Assets

https://www.irs.gov/pub/irs-pdf/p551.pdf

[chiachadly]

This is false. There is no reasonable way for people selling their personal property -- likely at a loss -- to avoid paying a penalty on top of a loss when they get a 1099. Not everyone can afford an accountant. Not everyone has record of all the property they accumulated over 35 years. Not everyone is operating a business.

The law cannot discern between what property is taxable and what isn't.  It is poorly written. The purpose of the 20K threshold was to avoid sweeping up people, like me, who are only selling stuff they personally owned and used, and are in a bind and need to sell it.

[chiachadly]

You aren't the crazy one. You're spot on. This whole eBay forum is just another toxic, bull**bleep** Internet forum of shreaking, shrill righteous people. They are not interested in the nuance, and they do not reflect how people feel in reality about this nonsensical change. That 20K threshold -- which, admittedly, can probably be reduced -- was put in place because the existing tax law can't discern profit from loss when it comes to selling personal property.  And if the person being taxed lacks proof -- as the vast majority of normal people buying and using property likely do -- they wouldn't be swept up by what is supposed to be a tax on property flipping.

[chiachadly]

It is taxable if you can't prove you are selling it at a loss. That is the issue.

[treasurechic70]

Iv been selling items on eBay for friends and family who do not use a computer because of age or ignorance I suppose. Now I have to go through this mess at tax time just because I wanted to help people out. I explain to them how eBay fees work and shipping cost before I list anything for them. Alot of the items are metal detectors because I'm in a club so I just checked and the profits are a little over  $6,000.00 since January. I guess I didn't pay attention enough to the new law. It obviously wasn't made a big enough deal.  Now I'm screwed. Unfortunately I am no longer selling anything else on eBay as of immediately.  This really screws the little people. 

[kh-stanley1]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.