Stimulus bill add on for online sales question...rumor or true?

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Just curious and can’t seem to find any info on the matter. Someone told me that within the new stimulus/relief bill just passed, there was an add in that would require companies such as eBay and mercari, etc. to give records of any sales totals over $600? Is this just a rumor or is their truth to it?
let me add i am not looking to be ridiculed for posting false info if this is inaccurate. Genuinely would like to know. Thanks.

holifeld

675 View listings

Posted 5 years ago·Last reply 3 years ago

8 comments

kh-leslie

·3 years ago

0 View listings

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.

maxine*j

·3 years ago

142 View listings

Hardly a rumor, and here you go with literally 6000 threads on the topic of the 1099K:

https://community.ebay.com/t5/forums/searchpage/tab/message?advanced=false&allow_punctuation=false&q=1099

eleda-7496

·3 years ago

11 View listings

20000 dallors

nuclearomen

·5 years ago

Owner1703 View listings

😂there is a ton of nonsense in the new bill, none of which deals with online market places. The IRS requires all sales to be reported, always has, always will. What your talking about the marketplace laws that were passed and in effect now for over a year requiring market places like ebay to report and pay state sales tax to state of sale origin. Nothing new here. Nothing concerning 3rd relief bill.

stepstonellc

·5 years ago

4854 View listings

No they didn't. Guidance on the IRS website says that if you sold an item for less than your cost basis, to not even report it. They don't need to know you sold your used riding lawnmower for $600 that you paid $1200. They don't want to be swamped with that garbage.

But now with $600 1099's, all Americans will have to report that type of transaction, just to show the $600 should not be added as income. So at the very least, more of your private info handed over to government and more paperwork an individual will need to complete.

It will also be a nightmare for many people. Say you have a roommate that you split an apartment with. That roomate sells online and reports everything EXACTLY as required by law. Then the use the money in their Paypal to do a friends and family transfer for their half of the rent.

YOU will now receive a 1099 totaling their half of the rent money for the year. And how are you supposed to justify that. You aren't the property owner renting the property. You didn't sell anything. There really isn't a form to explain that to the IRS. But if you fail to account for it in someway, you will greatly increase your chance of being audited by just ignoring the 1099.

The $600 level comes out of Democrat controlled states where they tax the **bleep** out of everyone and drive residents from their states. Now they have imposed that on all of America.

nuclearomen

·5 years ago

Owner1703 View listings

@stepstonellc wrote:
No they didn't. Guidance on the IRS website says that if you sold an item for less than your cost basis, to not even report it. They don't need to know you sold your used riding lawnmower for $600 that you paid $1200. They don't want to be swamped with that garbage.

But now with $600 1099's, all Americans will have to report that type of transaction, just to show the $600 should not be added as income. So at the very least, more of your private info handed over to government and more paperwork an individual will need to complete.

It will also be a nightmare for many people. Say you have a roommate that you split an apartment with. That roomate sells online and reports everything EXACTLY as required by law. Then the use the money in their Paypal to do a friends and family transfer for their half of the rent.

YOU will now receive a 1099 totaling their half of the rent money for the year. And how are you supposed to justify that. You aren't the property owner renting the property. You didn't sell anything. There really isn't a form to explain that to the IRS. But if you fail to account for it in someway, you will greatly increase your chance of being audited by just ignoring the 1099.

The $600 level comes out of Democrat controlled states where they tax the **bleep** out of everyone and drive residents from their states. Now they have imposed that on all of America.

no, you don't get a 1099 unless you did 200 transactions AND $20,000 in sales. From Paypal or Ebay. Yes, true, you don't need to report one time $600 sale, that's not what I meant of course, if your selling online regularly not the occasional sale of your used lawn tracker you paid $5,000 for and got $900 on the sale.

stepstonellc

·5 years ago

4854 View listings

Yes. A limit like $20,000 is more than enough for casual sellers. What you have to keep in mind is their may be 10 million business sellers, and a few hundred million casual sellers. Most of those casual sellers will have no idea what the implications are of this $600 limit, until it is too late.

And if you thought $20,000 is too high, you may have a valid argument. Maybe it did need to be lower, but jumping to $600 wasn't a reasoned approach, it was a cash grab. Maybe $6000 would have been a better decrease. They admit the plan on the $600 limit to bring in $8.4 billion is additional tax revenue per year. It was done with intent.

40 $5 items with priority mail shipping will put you over the $600 limit. That is less than one cheap item per week. With a couple of kids, you could hit that selling old winter coats, snow boots, and a few toys. Then along comes Uncle Sam demanding you give them a list of everything you sold, how much you sold it for, how much you paid for it, how long you had it, etc. etc.

Your house and everything in it, just became an inventory for the IRS!

A business already exceeding the $20k limit and reporting correctly, isn't going to generate any of that additional $8.4 billion revenue. It's just squeezing the little guy that is going to generate it.

theteamsetguy

·3 years ago

19931 View listings

@stepstonellc ,

So, the little doesn't have to pay their fair share for the services our great country provides. The little guy benefits just as much as the big guy for police, fire, schools, parks, stadiums, the military, foreign aid to Ukraine, roads, highways, food stamps, welfare benefits, medicaid, prisons, and etc.