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. 

[chapeau-noir]

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@slippinjimmy wrote:

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@gracieallen01 wrote:

I wonder just how many of those who complain about the new limits are just afraid, since they haven't been declaring the taxes, they will get audited for back taxes?

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If you add the number that think they never had to report eBay income to the number that have been intentionally not reporting you would probably end up with 99.99% of the complainers.

Anyone with smarts that hasn't been reporting eBay income are smart enough to know it's not a good idea to reveal that on a public forum.

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Much less try to whip up some kind of posse over it. 

[mandh2]

I sort of do the same thing but since ebay has taken over with managed payments, I only see monthly transaction detail reports of sales, fees, returns, shipping costs, etc. I haven't seen a yearly one.

So I  get a copy of it every month and add them up at the end of the year. 

[rdd2658]

For sure, once I hit 599.00, I'm done selling on ebay after 23 years!  Luckily my store subscription expires 2-1-22, so will only loose the one month fee.  Have been thinking about it for years after the post office started charging by distance and then the newest scam of xmas surcharge starting on oct 1st the last 2 years,,,,,never seen any xmas mail in oct or nov?  In most case the postage costs more than the item i paid for to sell.

[divwido]

No.   No I'm not, what does that have to do with anything?   I keep excellent records and I always have.  

No, stupid does not win over lazy.

[unclepuffi]

I am late to the party as I just found out about this today. I looked at the form and this makes NO sense! It seems they assume that the gross sale is pure profit. So if I buy a $10 item and sell it online for $20, I am taxed for $20 income??

Is this how others interpret this?

[tdrake]

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@unclepuffi wrote:

I am late to the party as I just found out about this today. I looked at the form and this makes NO sense! It seems they assume that the gross sale is pure profit. So if I buy a $10 item and sell it online for $20, I am taxed for $20 income??

Is this how others interpret this?

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eBay isn't going to figure out your deductions for you, you or whoever does your taxes do that just as I'm sure you've been doing every year when you report your sales on your tax forms. NOTHING has changed except eBay will be sending out formal 1099's for $600 and over. NO change is made to how you report your profit/loss at tax time. Do the same as you always have done, easy as pie.

[kensgiftshop]

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@rdd2658 wrote:

For sure, once I hit 599.00, I'm done selling on ebay after 23 years!  Luckily my store subscription expires 2-1-22, so will only loose the one month fee.  Have been thinking about it for years after the post office started charging by distance and then the newest scam of xmas surcharge starting on oct 1st the last 2 years,,,,,never seen any xmas mail in oct or nov?  In most case the postage costs more than the item i paid for to sell.

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My daughter has been ordering Christmas stuff for 3 or 4 months now, so some people do start shopping early.

[fern*wood]

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@rdd2658 wrote:

For sure, once I hit 599.00, I'm done selling on ebay after 23 years!  Luckily my store subscription expires 2-1-22, so will only loose the one month fee.  Have been thinking about it for years after the post office started charging by distance and then the newest scam of xmas surcharge starting on oct 1st the last 2 years,,,,,never seen any xmas mail in oct or nov?  In most case the postage costs more than the item i paid for to sell.

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Are you saying that as a shooting star seller with over 25 thousand transactions under your belt you will now quit if you have to report these sales on your taxes?

[a_c_green]

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@unclepuffi wrote:

I am late to the party as I just found out about this today. I looked at the form and this makes NO sense! It seems they assume that the gross sale is pure profit. So if I buy a $10 item and sell it online for $20, I am taxed for $20 income??

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They don't "assume" anything; they are simply reporting that you received $20 in that sale. You then file your deductions for the various expenses involved in the sale (in particular, that your cost of acquisition was $10, plus whatever expenses you had for packing and shipping it), and whatever is left is your net income, what you actually pay taxes on.

All the 1099 provides is your starting number, the gross income you took in, and then it's up to you to log your expenses as deductions from that amount.

I'm talking in generalities above, but the point is that you're not going to end up paying taxes on the full amount shown in the 1099. That just your starting point; the real amount you're taxed on will almost certainly be much lower than that.

[bearswatching]

Why would I leave when I can make money on eBay ? eBay doesn’t do my taxes for me, therefore they couldn’t possibly know what deductions I have, how many dependents I have, etc. You just file your taxes as usual. In many cases the amount you make from any gig income may not affect your tax liability. There are many legal deductions you can take. Turbo Tax can be your friend!

[louies1948]

I will keep selling, the new change does not effect me.  I have been paying my taxes all along.  haven't you ???

[slippinjimmy]

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@mandh2 wrote:

I sort of do the same thing but since ebay has taken over with managed payments, I only see monthly transaction detail reports of sales, fees, returns, shipping costs, etc. I haven't seen a yearly one.

So I  get a copy of it every month and add them up at the end of the year. 

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The transaction report available from eBay will give you a full year report with no need to do monthly reports and add them up. The default for the report is one month but you can change that, I believe the data for the past 18 months is always available.

I just ran a report for Jan 1/21 to Nov 30/21 and will do a calendar year report on Jan 1/22.

[katzrul15]

Sell now, will sell then.

Pay taxes now, will pay taxes then.

What exactly IS the question???

[silver7auto]

Almost 😃 :

I'll tax the street
(If you try to sit, sit) I'll tax your seat
(If you get too cold, cold) I'll tax the heat
(If you take a walk, walk) I'll tax your feet

-RIP George

[wildpitchsports]

I am interested in knowing if other sellers are considering discontinuing selling on eBay and other online sites after December 31, 2021.

Maybe there should have been a "?" at the end of the sentence or rephrased. 

That or : Thanks for your input or thoughts. 

*shrug*