"The only part that is reportable to the IRS at years end is the item cost + domestic shipping as that is what a seller gets from the sale."
Well that's how it should be. That's if you're selling domestically. However, if you sell internationally directly, that international shipping fee would be reported as well.
"The seller can then deduct the eBay fees & the domestic shipping label cost + cost of item to get the taxable amount if there is any from that amount."
Correct. And in most cases there will be loses. Especially if you're just a casual seller and not a business. And we don't owe on loses.
"The international shipping fee is eBay's responsibility."
Again, that's how it should be if you're selling internationally using eIS (eBay International Shipping). However, selling international directly would be different as mentioned earlier.
"(eIS fees) are not included in a seller's gross total at the end of the year."
Once again, that's how it should be. It's only logical. However, according to eBay, the order total shown in your Seller Hub under the Orders tab is the sum of all paid orders, including shipping, taxes, and fees which in turn gets reflected onto your 1099K. That said, if you do the math, you'll notice that any eIS program fees that eBay collected from buyer ARE indeed included. I've done the math and implore you to do the same. Now we just wait to see if drops from the 1099K at years end or if it gets included. I sure hope not but according to eBay phone agents, those eIS fees are there to stay.
