New tax rules for 2022

[kenwooddave]

This might end an ebay seller of collectables after 23 years, 7k+ FB's at 100%. The extra time with paperwork keeping track of sells at 1c to $100, minus the original cost, etc. Always look forward to listing 250 lots each month but will not renew my store next year.  Seems the liberal gov. after the smalltime sellers to raise funds for the social programs.

[downunder-61]

There are so many threads already, they are becoming meaningless and bordrline ridiculous.

The issuance of a 1099k at a lower threshhold in 2022 has absolutely nothing to do with your responsibility to claim and pay your taxes.

Tax evasion is fraud, and if you have not declared profit you have made on eBay in 23 years, I would not be announcing that on a public forum for all and sundry to read.

[stainlessenginecovers]

255 items sold past 90 days; over $500 sold just since Dec 1 equating to an average of $12,000 a year and you have NEVER reported it? 

[luckythewinner]

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@kenwooddave wrote:

This might end an ebay seller of collectables after 23 years, 7k+ FB's at 100%. The extra time with paperwork keeping track of sells at 1c to $100, minus the original cost, etc. Always look forward to listing 250 lots each month but will not renew my store next year.  Seems the liberal gov. after the smalltime sellers to raise funds for the social programs.

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The 1099-K you get from eBay is simply one number you need to put on your tax return.

All the other accounting is work that the tax laws have always required - keeping track of income, costs, expenses and reporting your business activity to the IRS - has not changed.

Why do you think the 1099-K will add a lot more work?

P.S. making it harder for people to cheat on their taxes is not a "liberal" thing. The 1099-K was first created under the first Bush administration as part of his Recovery Act of 2008.

[jayjaspersgarage]

Fresno is pretty close to Roseville.  This new law isn't limited to the IRS.  Wait until the State Franchise Tax Boards across the country get wind of the unreported earning from ebay and other sites.  

Keeping records is a normal everyday part of business.  Computers have been around since the 1980's for most home run businesses.  

The complainers are running out of time and excuses.

[smallworldsellers]

You can have GoDaddy add up all your sales and fees for $9.95 a month.  I did it and simplfied my life and seems cheap enough.  They link right to Ebay and record everything.  Good luck.

[wrong66]

I'm sure that many sellers like you, who have been tax-dodging forever, will be leaving eBay this coming year. None of you will be missed.

[downunder-61]

If the IRS did a little read through here one day, it would be like shooting fish in a barrel LOL

[southern*sweet*tea]

Here we go again.

@kenwooddave 

There has been NO CHANGE to the tax law as it applies to people who receive payments online.  It is the same as it has always been.

The change is to the reporting requirements for entities that issue 1099 forms.

YOUR responsibility remains the same as it always has - to report any income you may receive.

If you are a law abiding citizen, why are you ending your store?

(What does our current liberal ::gag::  administration have to do with anything? The law as it applies to you is the same as it was under the previous ::gag:: administration.)

[kensgiftshop]

@kenwooddave 

If you had been reporting your income all this time, you'd know it's not going to be a big problem.

It's sellers like you that haven't been reporting their income that the IRS is going to like.

[southern*sweet*tea]

Sorry about the double post, y'all. I got that stupid unexpected error then the post flooding thing. Will self report.

[maxine*j]

Sounds like you will miss being a proud member of the underground economy, especially after all these years there.   Say goodbye to all your friends in that undergound economy:   Foreign nationals working unlawfully in the country.   Drug and human traffickers.   Terrorist cells.   General scofflaws.    And, of course, your fellow tax dodgers.

Happy Trails.

=

[north40sales]

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@kensgiftshop wrote:

@kenwooddave 

If you had been reporting your income all this time, you'd know it's not going to be a big problem.

It's sellers like you that haven't been reporting their income that the IRS is going to like.

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at the same time, people never reported and paid state sales and use taxes on out of state purchases like they are supposed to.   S. Dakota v. Wayfair addresses this issue by shifting the tax collection & remittance burden onto larger venue providers like eBay.

[donsdetour]

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@kenwooddave wrote:

This might end an ebay seller of collectables after 23 years, 7k+ FB's at 100%. The extra time with paperwork keeping track of sells at 1c to $100, minus the original cost, etc. Always look forward to listing 250 lots each month but will not renew my store next year.  Seems the liberal gov. after the smalltime sellers to raise funds for the social programs.

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WOW: income tax evasion, and eBay keeps records for a long long time....

Might want to get a license for a business and keep selling so when and if you get audited you will have some way to pay such.... Just saying.

[nobody*s_perfect]

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@maxine*j wrote: ...  your friends in that undergound economy:   Foreign nationals working unlawfully in the country.   Drug and human traffickers.   Terrorist cells.   General scofflaws.    And, of course, your fellow tax dodgers....

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And babysitters. And the neighbor's kid who mows the lawn.

It's absolutely astonishing to me that so many long-term eBay sellers can be so oblivious about the laws that require them to report their eBay earnings.

Since I'm here, I'll add that at least 8  states and Washington DC had already passed laws requiring eBay, PayPal, and other payment processors to provide 1099-K's for lower thresholds, mostly $600 with no minimum number of transactions. So sending out 1099-K's for lower thresholds is not a new burden for eBay.  If anything, it will be simpler for eBay now that members in every state will have the same threshold. 

Here's a summary that eBay published last February; perhaps other states have joined the list and will require 1099-K's for thresholds below $20K for 2021.

https://community.ebay.com/t5/Payments/Form-1099-K-Detailed-Report/m-p/31575590#M106915

• Arkansas - $2,500 in gross payments with no threshold on the number of transactions
• District of Columbia - $600 in gross payments with no threshold on the number of transactions
• Illinois - $1,000 in gross payments and a minimum of 4 transactions
• Maryland - $600 in gross payments with no threshold on the number of transactions
• Massachusetts - $600 in gross payments with no threshold on the number of transactions
• Mississippi - $600 in gross payments with no threshold on the number of transactions
• New Jersey - $1,000 in gross payments with no threshold on the number of transactions
• Virginia - $600 in gross payments with no threshold on the number of transactions
• Vermont - $600 in gross payments with no threshold on the number of transactions