1099K and costs.
Hello. The 1099k just list gross sales and does not account for expenses. Of course fees and shipping are the burden of the seller. Whomever changed to the $600 is anti business and pro burdening paperwork.
20 comments
Hello. The 1099k just list gross sales and does not account for expenses. Of course fees and shipping are the burden of the seller. Whomever changed to the $600 is anti business and pro burdening paperwork.
erin_suzy
·3 years agoNo one seems at all concerned that we are overtaxed as it is. And they can go 31 trillion into debt with OUR money and loyalists here would likely defend it. "Send them more money- maybe that'll solve it" Absolutely ridiculous.
yuzuha
·3 years agoIf you're actually running a business, then you'll already have all of the paperwork you need to be able to easily account for your expenses. I'm not seeing the problem here.
umoraski
·3 years agoAll those deductions are addressed when completing your tax forms for the year. Cost of Items, Fuel used in sourcing these items, Any office expenditures, Shipping Fees and Commission Fees, etc. All can be deducted from your gross.
luckythewinner
·3 years agoThe 1099k just list gross sales and does not account for expenses
eBay's 1099-K reports gross payments processed, less sales tax.
It is required of all payment processors (credit cards, PayPal, etc.) and not just eBay.
Whomever changed to the $600 is anti business and pro burdening paperwork.
That would be Congress and it received bipartisan support.
chariot_badges
·3 years agoWhoever is complaining about this is someone that does not report their earned income and now they are mad because they won't getaway with it anymore. You were ALWAYS supposed to report earned income. It does not make it pro-business or anti-business. It's the law.
I AM a sinner.
I don't cross at the crosswalk.
Sometimes I don't come to a complete stop before making a right turn on red.
I never rewind my CD's before returning them to the RedBox.
I once lied to get a senior discount at a hotel.
And, I get creative with tax filings of all sorts, and have for the last 50 years.
I bet I'm the ONLY one here that does the last one.
monroe67
·3 years ago"I don't cross at the crosswalk."
I looked at your listings and see you are in California. Pedestrians in California have the right of way in marked or unmarked crosswalks. If you walk across a street in the middle of a block and you get hit by a car, that car's driver might not be considered guilty of a crime or financially responsible for your injuries (or burial). You take the chance.
"Sometimes I don't come to a complete stop before making a right turn on red."
When I was learning to drive 100 years ago, my driver's ed teacher called that a Hollywood Stop. It was illegal when I lived in Hollywood, 1978-'81. It's still illegal, even in Northern California. Again, you take the chance.
"I never rewind my CD's before returning them to the RedBox."
Do CD's have to be rewound? Is this something new? For myself, I always rewound VCR tapes when I returned them to Blockbuster, but that was a long time ago.
"I once lied to get a senior discount at a hotel."
I am a senior citizen. The discounts aren't that great. But if you needed the discount -- well, again, you take the chance.
"And, I get creative with tax filings of all sorts, and have for the last 50 years."
OK, then! So, you're the one that made the Congress decide to have tax reporting forms sent to the IRS for people who sell as little as $600 per year on eBay. You must be proud. Again, again: You take the chance.
"I bet I'm the ONLY one here that does the last one."
Well, you may be one of the few who come to the eBay community and admits to it.
slippinjimmy
·3 years ago"creative accounting" does not equate with illegal accounting, it CAN mean that but definitely not always. When I employed a "creative" accountant and tax lawyer the accountant would not agree to any of my "creative" ideas unless It had been vetted by my tax lawyer.
I once had to get very creative during a tax audit, the auditor was sure I was doing something wrong but have consulting with his superiors it was confirmed that what I proposed was unusual but 100% in compliance with the relevant tax statutes.
dbfolks166mt
·3 years agoWhoever is complaining about this is someone that does not report their earned income and now they are mad because they won't getaway with it anymore. You were ALWAYS supposed to report earned income. It does not make it pro-business or anti-business. It's the law.
I AM a sinner.
I don't cross at the crosswalk.
Sometimes I don't come to a complete stop before making a right turn on red.
I never rewind my CD's before returning them to the RedBox.
I once lied to get a senior discount at a hotel.
And, I get creative with tax filings of all sorts, and have for the last 50 years.
I bet I'm the ONLY one here that does the last one.
There is cheating on your taxes and then there is tax avoidance. The first on is a problem the second one is done by a LOT of people and corporate American is an expert at it. The following is a couple of years old but not much has changed. Biden can profess raising tax on the wealthy and corporations but the net gain is probably going to be minimal if anything.
https://itep.org/55-profitable-corporations-zero-corporate-tax/
ms.rodriguez*
·3 years agoWhoever is complaining about this is someone that does not report their earned income and now they are mad because they won't getaway with it anymore. You were ALWAYS supposed to report earned income. It does not make it pro-business or anti-business. It's the law.
susanb1872
·3 years agoVarious types of 1099 forms have been around a long time. Independent contractors have to receive a 1099 form if they do $600 or more of work. The IRS (with Congress making the rules) has just recently have caught up to the concept of online sales.
chapeau-noir
·3 years ago"Anti-business" seems an odd way to describe a $600 revenue reporting threshold.
kensgiftshop
·3 years agoIf you have been reporting your income like you're supposed to be doing, it's just one more piece of paper.
You have been reporting your income haven't you?
redmodelt
·3 years agoSome states were at the $600 level long before it got changed on a national level.
maxine*j
·3 years agoWhere's the extra burden? The only change is in the reporting requirement imposed on eBay.
For you, nothing has changed: Whatever record-keeping you did in the past in order to prepare your income tax returns is just the same. Actually, the 1099 makes it a bit easier, so far as reporting income from eBay sales.
The only people affected are those who were not reporting income as they should have done, and they're actually part of the reason for the 1099 threshold being lowered.
But you're fine, surely.
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chariot_badges
·3 years agoI believe "whomever" is a combination of the United States Congress and the Internal Revenue Service,
as well as the state treasuries of several individual states.
Well, you're half right ... the IRS does not raise taxes, or determine how much ... they just collect.
"Whomever" is whom ever we vote for.
We voted for this.
All of it.
Yes ... you did.
monroe67
·3 years ago"Whomever changed to the $600 is anti business and pro burdening paperwork."
I believe "whomever" is a combination of the United States Congress and the Internal Revenue Service,
as well as the state treasuries of several individual states.
The purpose of lowering the dollar amount threshold for issuance of 1099K reports is to encourage more taxpayers to pay income taxes on, well, their incomes.
Or, since I am also a low-level eBay seller, I should say: Our Incomes.
Doesn't do anything to stop big businesses, the really huge corporations, from playing (or trying to play) games with their income taxes.
caldreamer
·3 years agoEBAY has an "easy to understand" 1-page report that will help during tax time. Go to Payments, Reports, REPORTS (NEW) and select time period. This report shows YTD totals for "orders, refunds, EBAY fees, shipping expense".
You need to manually keep track of "beginning and ending inventory" on hand. Other expenses (cost of goods, mileage, packing supplies, office supplies, etc).
You must report gross sales as shown on 1099 (after all expenses are deducted...that amount is taxable).
Unavailable member
·3 years agoThere is no reason to keep track of inventory if you are using cash basis, accounting. There is no requirement unless a seller is it an extremely high sales rate. 99% of salaries will not reach that level, so there is no need to go through the laborious task of inventory reconciliation.
dbfolks166mt
·3 years agoThere is no reason to keep track of inventory if you are using cash basis, accounting. There is no requirement unless a seller is it an extremely high sales rate. 99% of salaries will not reach that level, so there is no need to go through the laborious task of inventory reconciliation.
It doesn't matter what form of accounting you are using there is an exemption for small business when it comes to inventory. It's when you choose to report inventory that you must generally use accrual accounting. From the IRS pub.
Exception for small business taxpayers.
If you are a small business taxpayer, you can choose not to keep an inventory, but you must still use a method of accounting for inventory that clearly reflects income. If you choose not to keep an inventory, you won’t be treated as failing to clearly reflect income if your method of accounting for inventory treats inventory as non-incidental material or supplies, or conforms to your financial accounting treatment of inventories. If, however, you choose to keep an inventory, you must generally use an accrual method of accounting and value the inventory each year to determine your cost of goods sold in Part III of Schedule C.
Small business taxpayer.
You qualify as a small business taxpayer if you (a) have average annual gross receipts of $27 million or less for the 3 prior tax years, and (b) are not a tax shelter (as defined in section 448(d)(3)). If your business has not been in existence for all of the 3-tax-year period used in figuring average gross receipts, base your average on the period it has existed, and if your business has a predecessor entity, include the gross receipts of the predecessor entity from the 3-tax-year period when figuring average gross receipts. If your business (or predecessor entity) had short tax years for any of the 3-tax-year period, annualize your business’ gross receipts for the short tax years that are part of the 3-tax-year period. See Pub. 538 for more information.
asset_liquidators
·3 years agoI keep meticulous records and can pull up sales I had from 25 years ago within a matter of a minute or two. Just curious though, how did you get that report down to 1 page? Mine would currently be 14 pages.