1.9T$ COVID RELIEF BILL CONTAINS HUGE IMPACT ON EBAY SELLERS!

[lerchtoys]

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!

[dryophelia]

@lerchtoys 

With eBay providing the 1099, doesn’t that make it a little easier? For those who are not accountants, this should be a welcome. 

Unless the plan is to die owing the government as much as possible. 

[asset_liquidators]

While I don't agree with the government overreach that gets buried into every bill that gets passed, I will say this.

It does not cut your selling limit. It cuts the threshold for when a 1099k needs to be sent. This would have no affect on a seller since you are already reporting that income (at least you are supposed to be) on your taxes anyway whether you receive a 1099k or not.

[buyologist-3]

[gjs_16]

---

@fern*wood wrote:

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.  

---

Oooo that never crossed my mind but good point!

Yes of course, once ebay started to collect sales tax those sellers who grossly underreported (or never reported) their "below $20k" sales to ebay came to light... As I am sure there were quite a few of those, from what I have seen tax evasion is for many Americans a "good" thing, like they feel they are winning when they are "getting over on Uncle Sam" because that Uncle Sam is a bad guy.  I am not kidding, that is how these people who don't pay their taxes think, I have heard them tell it to me when I asked why...

Probably hundreds of thousands of these sellers here on ebay.

If we had only 20 thousand sellers who never reported 5 thousand dollars a year to the IRS, that would be a loss of 100 million dollars of unreported sales, I however suspect the actual number to be far higher, as in I think it's in the billions of dollars annually that never got reported.

Hard to say for sure, I could be wrong, we don't have the actual figures but it sure seems to have opened the eyes of the IRS when they saw the ebay sales tax collected wasn't matching up with income figures being reported by their sellers and obviously, by no small amount or they probably would not have moved a finger over some petty larceny.

So I guess this is very bad news for those sellers, I on the other hand am quite pleased because my sales are taking off as they're finally closing the stores of people who don't need to be selling here.  Failure to report taxes is not only a crime but it is dishonest and we don't need criminally dishonest sellers on ebay.

[buyologist-3]

What is "Other" fall under?  I hope Agriculture doesn't get spoiled.  It's only food.  Thought you'd like to see the breakdown.  

[pcobra93]

All I see is "politician slush funds"...

[yellow-snapdragon]

So I am a small seller who sells mostly items I purchased for me that I do not use anymore (clothing and home decor). I paid much more for these items than I am able to sell them for and I paid sales tax on most of them when I purchased them. This is not my business, I am not making more money on items than I paid for them, much less actually. How does that work for sellers like me? 

[gjs_16]

---

@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!

---

Well no actually "$600 a year" has been the limit on unreported income for as long as I can remember, even 30 years ago this was so... It has nothing to do with some Covid tax relief whatever, maybe if certain folks start doing things the right way they'd stop seeing conspiracies everywhere they turn.

This isn't "cutting sales down."
Making people report all income is not driving out small sellers, it is driving out illegal commerce.

Maybe if everyone paid their taxes our infrastructure wouldn't be crumbling.

I am all in favor of that.

Just a thought, of course.

[farmalljr]

Consult with your tax preparer.  That's the simple answer.  If you intend to sell, you should have done this already. 

My state/locale requires even people who have a yard sale, to report how much they sold. So asking that advice from a person familiar with the tax laws and requirements, is best. 

[tealt]

The folks who are in for the biggest surprise are the ones who:

Bought an expensive bike/camera/whatever in 2015 for $1500.

Are tired of the bike/camera/whatever in April of 2022 and decide to list it on eBay for $900.

The thing sells for $900.

In January 2023, the seller gets a 1099-K from eBay for $900 "income".

Unless the seller has an original receipt, they will just have to "fake it" and claim the original item cost of $1500 under some sort of deduction, and faking things with the IRS is always a risk.  If no deduction (real or faked) is claimed, the $900 will become part of the seller's 2022 gross income.

People cleaning out their closets or Aunt Bea's estate used items by selling them on eBay, will not, I suspect, realize why the 1099-K appears--unless, of course, eBay issues some type of warning to casual sellers in early 2022 [Do I see swine overhead?]

[char1165]

It would be if EBay did not lump sum it all into income.  EBay and PayPal’s 1099-k includes the sales tax they collect to your total income, so you have to figure all shipping costs, fees and the sales tax they collect that you never see

[iart]

Fortunately, it won't have an impact on this ebay seller. We have always paid our taxes. Just because you didn't get a 1099 doesn't mean you didn't owe.

[d.boone1864]

Thanks for sharing this info.. Would like to sell most of my things ,before I die.. Now big brother wants to tax you again.. ☹️

[jayjaspersgarage]

"My state/locale requires even people who have a yard sale, to report how much they sold."

Show me three families that report income from yard sales on their taxes and I will show you a ship stuck in the Suez canal.  Oh, sorry, that ship has sailed.  "Use" tax is a joke when it comes to selling old personal possessions at yard sales regardless of the amount.  Large antique flea markets may ask what you sold for general trend information but they won't hand you a 1099 reporting form until the fourth sale in the same calendar year.

Selling used cars is another thing that people abuse when they agree to lie about the selling price on a written receipt to do the buyer a favor at the DMV where the tax is assessed.  Seems like every used car ever sold in the 1970's cost $300 to $500.  How is that possible?  lol

[gracieallen01]

Yeah, I sold an old, used, 8ft tall Tiffany grandfather clock (working, full moon dial and full chimes) at my house sale a few weeks ago.  It will be included in yearly totals for tax purposes.  Whether the person who bought it pays 'use tax', is up to them.  I worry about my end of the transaction.  Yes, I sold it tax included.