New Tax Reporting Laws

[euroakes]

I am interested in knowing if other sellers are considering discontinuing selling on eBay and other online sites after December 31, 2021. Or at least stopping once $600 is reached. I for one cannot spend the time tracking each one of my small sales where I am making only a few dollars on each. 
Thanks for your input or thoughts. 

[nobody*s_perfect]

There have already been about 473 threads about this topic, with plenty of opinions about whether to continue.

[cubano4u]

I started tracking my sales last year because we already knew back then this was in the pipeline. So I have every single one of my sales, and expenses, tracked for 2021. I will then work with my accountant this year to see if theoretically these sales will impact negatively on my income. Basically if I were to report them, a with or without scenario. If she deduces the impact to be minimal than I know I am good to go for 2022. 

[glasser]

In short yes. I will continue selling. There is no new liability for taxes here only new reporting by eBay. It is not a hassle to keep track especially as a small seller. I do all mine a spreadsheet that I share with tax preparer and boom I am done.

[audra13]

I will most likely stop, not paying to have an accountant do my taxes when I make very little money to begin with.  Or I will sell until I reach $599 and move to another platform.

[buyselljack2016]

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@cubano4u wrote:

I started tracking my sales last year because we already knew back then this was in the pipeline. So I have every single one of my sales, and expenses, tracked for 2021. I will then work with my accountant this year to see if theoretically these sales will impact negatively on my income. Basically if I were to report them, a with or without scenario. If she deduces the impact to be minimal than I know I am good to go for 2022. 

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You should already have a very good idea of the "impact".  Nothing is changing other than the level at which a 1099-K is provided.

There is no change in the requirement to file an income tax return claiming income from eBay, or other sources unless one is below the lever at which filing is required by law.

[tealt]

No, I'm not considering ceasing to sell on eBay.  Nothing will change for me except I'll get a 1099-K for my 2022 eBay gross. 

Although I'm just a micro seller, I've had the licenses required by my state and city since 1980.  I keep records mostly by hand because I'm so low volume and because the local antiques co-op where I also sell does absolutely everything on paper.

My husband uses Turbo Tax to do our returns and I use Schedule C therein to report on my business.  That works well for us and is cheaper that hiring a CPA or tax service.

[out_of_the_house]

Yes, everything comes down from my site on Dec. 31st. I've been on ebay selling for 15 years. It is time consuming and not easy work. I'm retired and do not want to spend my precious time dealing with the IRS. I'm very sad about this new ruling and I'm sure it is going to be very distressing to MANY of us. God bless us all!

[chapeau-noir]

This isn't even worth arguing about, hatching conspiracy theories over or making yet ANOTHER complaining thread over - pay your taxes.  Period.  If you want to tax evade for **reasons**, it's on you. 

[silver7auto]

If the IRS had their way, they would tax that quarter you found on the sidewalk.

[mtgraves7984]

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@silver7auto wrote:

If the IRS had their way, they would tax that quarter you found on the sidewalk.

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Isn't this a Beatles' Taxman lyric? 🤣

[chapeau-noir]

😁  I think that was the pennies on your (dead) eyes.

[kensgiftshop]

@euroakes 

You should be tracking your sales and reporting your income already, so that's nothing new.

[duffy4444]

   It has always been a requirement for sellers on eBay and other online sales venues to report their online sales income and expenses on their taxes. I've been doing it for the last 18 years, even though I met the 1099K threshold of $20k only twice. It's called peace of mind and paying my taxes on the income less expenses, as all Americans should have been doing all along. And about half the years I actually had a loss when generous expenses were deducted.

   I have ZERO sympathy to all the tax cheats over the years who have known better and have gotten away with ignoring their responsibility. I'm glad the playing field is now being leveled. The loss of some sellers, who now have their socks all tied in a wad over being required to be honest, doesn't bother me one bit.

    Keep complaining, and either get into compliance, or go bye-bye... A little less competition here is welcomed by me.

Cheers, Duffy

[southern*sweet*tea]

There has been no change in the actual tax law regarding reporting income. The ONLY change is on the side of the entities that have to issue the 1099s.

All income, no matter how small, is supposed to be reported - it always has been.

No, I will not discontinue selling because of a 1099 law that does not affect me, because I report my income.