eBay

lerchtoys · ‎03-31-2021

Since the fatcats at Ebay will not tell anyone - here it is: buried in the latest covid relief bill is a clause/law that will cut our selling limit from $20,000 to $600.00 and Ebay will be required to send a 1099K to the IRS and all sellers who go over the $600.00 limit! Ebay will not say anything, because this fits into their agenda: drive out the small sellers and only support the mega sellers - the new E-COMMERCE model that Ebay is implementing! It will take effect for the calendar year 2022, so we are still safe for 2021! It was put into the bill to help pay for all the government spending and handouts!

chris90242 · ‎03-31-2021

Yes, other people posted the same thing. My understanding is that it affects all online payment transactions and is based on gross sales, not just ebay. I'm assuming local, cash sales will become popular again.

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Then Jesus said, "Beware! Guard against every kind of greed. Life is not measured by how much you own."

lerchtoys · ‎03-31-2021

I just placed a call to Ebay - Managed payments and their response is: WE HAVE NO IDEA WHAT YOU ARE TALKING ABOUT - complete and total lie on Ebay's part! Small sellers are being abandoned and eliminated!

kensgiftshop · ‎03-31-2021

@lerchtoys

As long as sellers are claiming their income like they should be, it won't be any problem.

Have a great day

slippinjimmy · ‎03-31-2021

The only sellers this change has ANY impact are those that are tax evaders in their spare time!

It was put into the bill to help pay for all the government spending and handouts!

That is correct, seems fair to me that all people who makes enough money to pay taxes should contribute. No reason I can understand why some eBay sellers should get a free ride.

What evidence do you have that eBay is trying to drive out "small sellers" (whatever that means), is it the fact they require an email address and a bank account. maybe it's the fact they give free listings to sellers big and small. Maybe it's the fact that Seller Performance criteria is more generous for low volume sellers than high volume sellers.......I could go on and on but I'll just finish with the FACT that the theory "eBay is trying to get rid of small sellers" has been around for well over 15 years but no one has ever been able to demonstrate how they are doing this or why they are doing this.

Bottom line, if eBay wanted to eliminate "small sellers" they could do it in an instant.

bayp26 · ‎03-31-2021

Haven't sellers always been required to pay taxes? Many small occasional sellers don't even reach the $600 minimum ebay reporting. How does this eliminate any seller, large or small?

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Not my selling nor buying account

calntom · ‎03-31-2021

Hard to believe this 20k threshold for a 1099 has been going on as long as it has.

Same with out of state internet sales. Amazing that stuff was not taxed sooner.

When I win more than 600 in a particular fishing tournament, I get a 1099.

EBay has nothing to do but fulfill government requirements. Every small seller that wants to sell on eBay and pay their taxes will be more than welcome to keep selling.

gracieallen01 · ‎03-31-2021

Yes, ebay will hand out 1099s just like real world employers hand out the W2s that people include with their income tax and financial institutions statements that declare interest paid (and to whom), etc. Just means that ebay is off the hook for the paperwork on those making less than $600.

What was the problem again?

Not saying 'NO' doesn't mean 'YES'.

The foolishness of one's actions or words is determined by the number of witnesses.

Perhaps if Brains were described as an APP, many people would use them more often.

Respect, like money, is only of 'worth' when it is earned - with all due respect, it can not be ordained, legislated or coerced. Anonymous

farmalljr · ‎03-31-2021

Let the whine fest begin.... IMO, the ONLY people who will be concerned with this bill, should it pass in current form, are those sellers who are not reporting their sales as INCOME as they are already required to by law.

The 20k threshold means absolutely bupkiss about REPORTING the income, it was merely a trigger to be issued a 1099. You still are required to report your earnings.

Darn, I guess Joe Blow can't make an extra ten grand, and forget to put it on the income line of his taxes. I bet it will get really funny too, when lots of people get audited for back taxes. Because that borrowed money has to get repaid SOMEHOW ( hope the stimulus money was worth it!). Now people are going to be ponying up the money they played with, instead of paying the taxes they owed.

I'm all for people being able to make a buck. But, I pay a hefty chunk of money in quarterly taxes every quarter. I can't seem to muster any pity for those who evade taxes and in the end, cause ME to have to pay more than MY share because some jerk wants to play games.

releasethekraken_1 · ‎03-31-2021

@lerchtoys wrote:
Since the fatcats at Ebay will not tell anyone - here it is: buried in the latest covid relief bill is a clause/law that will cut our selling limit from $20,000 to $600.00 and Ebay will be required to send a 1099K to the IRS and all sellers who go over the $600.00 limit! Ebay will not say anything, because this fits into their agenda: drive out the small sellers and only support the mega sellers - the new E-COMMERCE model that Ebay is implementing! It will take effect for the calendar year 2022, so we are still safe for 2021! It was put into the bill to help pay for all the government spending and handouts!

This is only a problem if you've been evading taxes. Your selling limit isn't being cut; the IRS is just requiring marketplaces to provide documentation about your sales if you exceed $600. So what?

What exactly are you "safe" from in 2021? Paying the tax you owe? Oh, too bad, welcome to the real world.

fern*wood · ‎03-31-2021

I'm curious about something. Since ebay collects and remits to the appropriate states any collected sales tax, do they connect that with the seller in each state? I used to remit the sales tax myself, but now ebay does this for me but I'm not clear on the mechanics.

Anyway, I would think all these states getting sales tax from ebay for sellers that never report their sales to them might be a problem.

calntom · ‎03-31-2021

@fern*wood wrote:
I'm curious about something. Since ebay collects and remits to the appropriate states any collected sales tax, do they connect that with the seller in each state? I used to remit the sales tax myself, but now ebay does this for me but I'm not clear on the mechanics.

Anyway, I would think all these states getting sales tax from ebay for sellers that never report their sales to them might be a problem.

I doubt the IRS has resources to follow seller's sales through interstate sales tax paper trails. They might try to go that route on a "big fish" if they needed more evidence. Just a guess......

bearswatching · ‎03-31-2021

Congrats on the fishing tournament bucks! Hope it was worth more than a grande latte at Starbucks.

releasethekraken_1 · ‎03-31-2021

I imagine people who've been generating $10-20k in sales here without reporting any of it are soiling themselves right about now. I imagine most of them have the good sense not to broadcast it on a message board.

collectfest · ‎03-31-2021

I owe taxes on what I sell even if I want to vomit as to what the government spends it on. This policy does not affect me unless I am missing the point.

If I sell $400.00 this year I report it, 1099k or not.

I'd love to not pay taxes but thats not going to happen...

Regards