eBay

loco4locos · ‎03-10-2021

As a planned hobby to buy and fix up old Lionel trains then resell them on eBay in order to have something to do in retirement and NOT to make a profit, I stupidly bought a lot of trains with the idea of doing this through my future retirement years. I have been fixing up and reselling these items for about a year and a half now and have been generating a little income which I use to offset my personal overhead. It's all done for enjoyment only with no intention of "making a profit". Ebay allowed 200 transactions a year with a tax reporting ceiling of $20,000. All looked bright for my retirement hobby future. But then the democrats CRUSHED that future. Now I must pay income taxes on earning of $600 or more! That's $50 a month I can earn before I have to start paying federal income taxes! All the democrats know how to do is tax and spend and make the country divided and unhappy. We get the government we deserve!

soh.maryl · ‎03-10-2021

I don't usually comment on income tax questions, because I don't know enough abut it, but have to ask, didn't you buy and pay for these items? And doesn't that information have to figure into calculating your tax on your income? You do state you aren't making a profit on these sales.

donsdetour · ‎03-10-2021

were do you think all that money for stimulants is coming from??

As for hobby: you would acualy still owe taxes if you did not know this.

As a business you do get to lose money for a time.

rock.star · ‎03-10-2021

If you are not making a profit then there are earning to be taxed.

nobody*s_perfect · ‎03-10-2021

You are supposed to report your eBay income and pay taxes on your net profit, even if you don't get a 1099-K. The threshold is the amount at which eBay (et al.) must send you a 1099-K. It is NOT a threshold below which you don't have to pay taxes.

Over the past few years, several states have lowered the threshold above which eBay (and PayPal, and other payment processors) must send you a 1099-K . Right now there are 9 states with lowered thresholds (including 6 at $600). Inevitably all states would implement this opportunity to catch up with residents who are avoiding their existing income tax obligations.

The good news is that since you purchased these items with the intention of reselling, you can deduct all of your expenses. You'll probably end up not owing anything.

axiombody · ‎03-10-2021

Operating at a loss sounds like a tax refund to me

kensgiftshop · ‎03-10-2021

@loco4locos

The 200/$20,000 is when they are required to report it.

You should be claiming your income even if you don't receive a 1099.

Have a great day.

iart · ‎03-10-2021

Great news! Now, you won't be able to offer lower prices than those of us who have always paid our taxes.

Enjoy your retirement.

soh.maryl · ‎03-10-2021

Why?

*graydog · ‎03-10-2021

Could someone please explain how this affects things sold on ebay that were not purchased to resell?

For example, a collection of doo dads collected over years and years. Do the limits of $600 still apply?

When do these new limits take effect?

I guess I'd better hurry and get my collectibles listed.

Thanks for reading.

chris90242 · ‎03-10-2021

@*graydog wrote:
Could someone please explain how this affects things sold on ebay that were not purchased to resell?

For example, a collection of doo dads collected over years and years. Do the limits of $600 still apply?

When do these new limits take effect?

I guess I'd better hurry and get my collectibles listed.

Thanks for reading.

This was discussed on some FB groups. Some understood it as not taking effect until 1/1/2022. This means all sales starting in the year 2022, will fall under the new threshold. Don't take my word for it though. I'm trying to find out myself.

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Then Jesus said, "Beware! Guard against every kind of greed. Life is not measured by how much you own."

chris90242 · ‎03-10-2021

@loco4locos wrote:
As a planned hobby to buy and fix up old Lionel trains then resell them on eBay in order to have something to do in retirement and NOT to make a profit, I stupidly bought a lot of trains with the idea of doing this through my future retirement years. I have been fixing up and reselling these items for about a year and a half now and have been generating a little income which I use to offset my personal overhead. It's all done for enjoyment only with no intention of "making a profit". Ebay allowed 200 transactions a year with a tax reporting ceiling of $20,000. All looked bright for my retirement hobby future. But then the democrats CRUSHED that future. Now I must pay income taxes on earning of $600 or more! That's $50 a month I can earn before I have to start paying federal income taxes! All the democrats know how to do is tax and spend and make the country divided and unhappy. We get the government we deserve!

How did you find out about it? And when do you think it takes effect? I've heard immediately, and others said next year.

--------------------------------------------------------------------------------------------------
Then Jesus said, "Beware! Guard against every kind of greed. Life is not measured by how much you own."

releasethekraken_1 · ‎03-10-2021

The individual states were starting to drop the 1099k limit to $600 before the "Democrats" did it for everyone, so it was only a matter of time no matter who was in control.

And you were supposed to be reporting the income anyway, so no sympathy from here.

m60driver · ‎03-10-2021

You should move to Florida which seems to become a haven for people who don't want to pay taxes. And they are not Democrats so you should fit right in. By the way, good luck getting in to Mar-a-Lago.