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!

[luckythewinner]

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@lerchtoys wrote:

 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

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How does this "drive out" small sellers? 

Aren't small sellers reporting their income anyway? 

[katzrul15]

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

Amen.  For those of us who have been paying taxes on our sales all along, this is just news.  If you have not been honest with the IRS and the State you live in about your sales, well.....you might wish to "re-think" that vs thinking you have "one more year".  

I said it the other day and I will say it again - I have no idea why people post on an online forum and admit/allude that they do not report their sales to the IRS.  Any person who reads (lurks, whatever) can make an anon tip to the IRS and they welcome those. 

[gjs_16]

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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

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At our DMV they use the Blue Book of the car *OR* the sales price whichever is greater, they closed that loophole quite some years ago.

I also believe that it is up to me to do what is right, first.
I struggled for a bit keeping all the expenses and income records but have since developed that into a fairly seamless part of my life, I hardly notice it.

[thelongball]

Hello Started reading this and didn't finish reading all of the post but I've been selling retail online since the beginning and I use a accountant for my taxes. He told me way back when many years ago that the guideline for something being a hobby or a business has always been 600.00. Nothing new there. So all along if someone makes over 600.00 in sales in a year, you are supposed to repost those sales with your taxes. This is for all sales not just online.  The government has always looked at sales under 600 as a hobby. 

   eBay for years has sent a 1099 to  anyone over 20,000 as its the governments way of checking for money launderings. 

   None of this is new due to Covid as these are the exact  same numbers  that have been in place for years . Covid just has opened eyes to just how much money is being spent on line and not being claimed as income and now they are going to watch it more closely. I've reported my sales and paid taxes on the money for years. My advise is to talk with a tax professional or accountant, as its not bad as it sounds because just because you sell 20,000 doesn't mean the tax is due on 20,000 as you have to subtract a lot of things to arrive at the profit margin and that's where your  tax liability is.  What will cost you is not reporting as the penalties and interest from a audit are extremely expensive. And be sure to save your receipts from expenses that are due to your selling.  Remember everything you do in a digital world is trackable. 

[farmalljr]

This response sums it all up pretty well. 

Look, none of us enjoy paying or want to pay taxes. All of us would agree we don't like the amount of taxes we pay, nor agree with where all the money is spent/wasted. 

However, it IS a requirement to pay taxes if you owe them. So rather then trying to "get away" with avoiding paying them and being subject to an audit or criminal prosecution, some of us follow the rules diligently. The consequences of tax avoidance are much worse then the "reward" of not paying it. 

[powell-memorabilia]

If you aren’t making a profit (purchase price minus your eBay proceeds), you wouldn’t owe any taxes,  you’d just have to enter expenses that offset the eBay revenue.

[gracieallen01]

It may be that the response to the idea of a 1099 as to what ebay actually means when it say they want to get rid of the 'garage sale image'.  It isn't really a matter of what is being sold, it is more a matter of how it is being sold: "I'm just cleaning out the closets." = garage sale, "I'm just a hobbyist." = garage sale, "I only list a few items a year." = garage sale, "What do you mean 'taxes'?" = garage sale, "What's a 'schedule C'?" = garage sale, "Ya mean I have to have receipts?" = garage sale, "what's a mileage log?" = garage sale, etc.  None of which ebay deigns to addess since they are 'just a venue' and doesn't want to discourage sellers.

[fern*wood]

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@calntom wrote:

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@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.  

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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......

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I guess I was thinking more about the state income tax many of us have to pay.  States want the money so this might be a red flag.  They audit too I believe.

[jayjaspersgarage]

Everybody wants a lower tax bill. One way to accomplish that might be to live in a state with no income tax. As of 2021, seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't have state income tax.  

[releasethekraken_1]

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@jayjaspersgarage wrote:

Everybody wants a lower tax bill. One way to accomplish that might be to live in a state with no income tax. As of 2021, seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't have state income tax.  

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Or one with no sales tax. Or one with low or no tax on retirement income. Or one with low property tax.

[bbravo65]

 (another side of this discussion...)

...anyone has self-concern must not mention about their personal matters on social media forum if they don't want to be reported to IRS, to be banned from Facebook, Twitter, to be criticized by political correctness, to be un-friended by family members or best friends, to get fired from their employers...and so goes on the lists...

(liked being here talking about paid or unpaid income tax from selling on eBay...)

..."if the walls have ears..."

[pcobra93]

The fact USED items are taxed IS double taxation...period

[frgre3717]

To everyone complaining: I'm willing to bet not one of you returned your stimulus check to the government.

Stop belly aching, you owed that tax money BEFORE the stimulus was passed, now you're just being forced to put on your big kid underoos and pay it.

[b86fiero]

The IRS has always considered any and all income AS income and subject to income tax.  The $500 so called exclusion is a myth.  It just costs too much to prosecute small dollar tax avoidance.

Additionally most states, counties and cities want their piece of your pie.

Many now consider you to be operating a business if you sell online and require you to obtain a business license.  Unless you've investigated the requirements for online sales with your state and local taxing authorities you probably just don't know that yet.  Hope you don't get caught as the penalties can be high.

FWIT I was an employee of a Treasurer Of State for years.

[releasethekraken_1]

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@pcobra93 wrote:

The fact USED items are taxed IS double taxation...period

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So take it up with your state representative. Whining about it here accomplishes nothing.