eBay

janies_bizz · ‎01-07-2009

I just started selling on Ebay and Im a little worried about reporting my extra little income. Its not that much but is there like a certain amount that I have to make for them to report or how does this work? Any help would be appreciated. Tax time is near.

komokwa · ‎03-03-2014

now that you've posted on this thread the IRS is going to be looking at you very closely !

NOT !!! ........................................................... LOL !

Who will save the river valley , that's my drinking water.! "Moxy Fruvous"

wood-psyche · ‎04-01-2014

Dead link

midgee1924 · ‎05-12-2014

typical response from a company man.

Expect a 1099 from ANY & ALL sales.

If you sell on craigslist, you can avoid this, BUT

You also risk being ripped off in buying goods (paypal & eBay offer seller protection)

and you have to deal with the local public on craigslist, unless you offer to sell outside your locality and accept money orders, cashier's checks or personal checks.

What I hate is that even though I bought and paid taxes on new stuff, when I sell it, it gets taxed again!

NOT FAIR.

Paypal & eBay should have paid lobbyists/politicians more to avoid this!!! It used to be you would not get a 1099 unless you sold $20,000 or more. But now, expect to get one for any sales, period!

billy_biggle_fan · ‎05-12-2014

All income from eBay sales is taxable, 1099 or not. But the IRS generally doesn't care about a few sales made a year.

There should be no reason that you are paying double taxes on items sold. If you fill out a Schedule C, you can write off your acquisition and selling costs, and only pay taxes on your profit. That's as it should be, since any profit is a capital gain.

eBay and PayPal do have paid lobbyists: http://www.ebaymainstreet.com/

mzbeezbargainz · ‎05-14-2014

There's too many people with the same name for them to just put a social security number to a name.

cmagichappen · ‎06-16-2014

There is a LOT of craziness, misinformation, panic, dread and confusion about the IRS and PayPal/eBay. After a LOT of searching because I'm thinking of selling again, this is what I found:

-There is NO info on the IRS site that specifically mentions PayPal...of course not.

-Searching Google, I found a PayPal page written in 2011...

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W From this page:

"PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:

$20,000 USD in gross payment volume from sales of goods or services in a single year
200 payments for goods or services in the same year

You may be asked to add your tax ID number, such as a Social Security Number (SSN) or Employer Identification Number (EIN), to your existing account(s), if you don’t already have one on file.

If you cross the IRS thresholds in 2012, PayPal will send Form 1099-K to you and the IRS for the 2012 tax year in early 2013."

-Why did some of you get letters from the IRS when you didn't come near the TWO specifications listed above??? My only guess...THEY are the IRS. https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

-Doing a search today for Internal Revenue Code (IRC) Section 6050W at the top of the PayPal page, this is what I found:

https://www.paypal.com/webapps/helpcenter/helphub/search/ which refers you to PayPal IRS 6050W website.

Now that I've depressed myself and most of you, let's hope we don't continue to starve!

blazeaglory714 · ‎12-13-2014

How is it income? Just because you sell something on ebay, doesnt mean it is classified as income.

Example, I pay $10 for a shirt and sell it for $5. That is a $5 loss. How is that income?

Can you link to any specific government source that says we have to report ALL sales AS income?

kansas_gal06 · ‎12-13-2014

Welcome to the part time seller's board, blaze!

anonymoose9 doesn't post much, so I'll answer instead - you are correct, if it's a loss, you don't pay taxes.

Also, I believe hondamedic posted a good link a few pages back to the IRS site:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Tax-Tips-for-Online-Auction-Sellers
Read the "online garage sale" section at the top.

blazeaglory714 · ‎12-13-2014

Thanks! Long time ebayer here, first time poster. I know my join date says '14 but I have had older accounts going back to 2001 roughly

Anyways, THANKS!

PS Online garage sale? Sounds fun!

kansas_gal06 · ‎12-13-2014

You're quite welcome!

That's what I'm selling on ebay, online garage sale, stuff around the house. I started out with some little cookbooks, my kid's math flash cards from 1st grade, wheel rims from an old car - stuff like that.

Although I quit selling heavy items like the wheel rims when ebay added fees on postage. That sort of thing went into my first real-live garage sale I had last Nov 1st. I've already started getting ready for a larger spring garage sale, now that I've gotten my feet wet. Times change, I used to donate everything to charity.

driver36806 · ‎12-29-2014

So what is the correct answer here? Is it paypal that will send you a 1099 and you have to meet both requirements $20,000 and 200 or more transactions?