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!

dbfolks166mt · ‎04-26-2021

Sure the following link contains the entire text of the bill. Feel free to read through the bill. Al lot of the business and corporate impacts deal with the restaurants and airlines but there are provisions that spread across a wide spectrum of the business arena. I won't try to condense the 5,000+ page bill down in a posting.

https://www.congress.gov/bill/117th-congress/house-bill/1319/text

dbfolks166mt · ‎04-26-2021

Ironically if it sold for less than paid including factoring in depreciation it is a loss and becomes a write-off.

stephenmorgan · ‎04-26-2021

Thanks for the follow up. I had found it a while ago and found the exact section relating to the $600 and 1099's.

I read a interesting news article this morning. I am going to see if I can find anything about it in the 219 pages. If the one statement is true it will make things much easier on myself and I am sure many others. I could include all eBay income as income (no deductions) and still would not owe any taxes because I would not be at $75,000 and that amount likely is higher if married.

https://www.yahoo.com/news/not-rich-good-news-probably-060003699.html

New estimates by Congress’s official forecasters show Democrats’ tax cuts — included in their March stimulus package — will drive down tax rates on low- and middle-income people so much this year that those earning less than $75,000, on average, will owe nothing in federal income taxes.

Those making between $75,000 and $100,000 will pay a scant 1.8 percent average tax rate this year, the nonpartisan Joint Committee on Taxation predicts.

releasethekraken_1 · ‎04-26-2021

@stephenmorgan wrote:
Thanks for the follow up. I had found it a while ago and found the exact section relating to the $600 and 1099's.

I read a interesting news article this morning. I am going to see if I can find anything about it in the 219 pages. If the one statement is true it will make things much easier on myself and I am sure many others. I could include all eBay income as income (no deductions) and still would not owe any taxes because I would not be at $75,000 and that amount likely is higher if married.

https://www.yahoo.com/news/not-rich-good-news-probably-060003699.html
New estimates by Congress’s official forecasters show Democrats’ tax cuts — included in their March stimulus package — will drive down tax rates on low- and middle-income people so much this year that those earning less than $75,000, on average, will owe nothing in federal income taxes.

Those making between $75,000 and $100,000 will pay a scant 1.8 percent average tax rate this year, the nonpartisan Joint Committee on Taxation predicts.

The tax rates being cited in that article are due to the stimulus credits we've been getting. Going forward, it's extremely unlikely that even a married couple making $74,900 would get away with owing no Federal income tax. Maybe if they have 3-4 children.

eaux-de-vie · ‎04-26-2021

What difference does it make? You sell $500, you claim it on your tax return (following the rules for shipping and other costs removed). You do not need to have eBay reporting it or not do do your taxes right.

stephenmorgan · ‎04-26-2021

Yea, I am sure you are correct. I just like things simple. I have no way of proving I have any cost basis on most anything I choose to sell so pretty much I have to report the entire amount of the sale as income.

slippinjimmy · ‎04-26-2021

@dnasilver wrote:
The IRS will not be able to handle the volume of 1099 increases and will not be able to determine which 1099 contains "real" income. This will be a bigger mess for the market places in the errors made on 1099 and the IRS that it will go to the wayside or be revised.

The IRS doesn't determine what a 1099 represents! That is up to the taxpayer to determine and provide the numbers they used to make that determination.

A 1099K represents the gross amount of transactions made through a payment processor, it does not, has not and will not represent net income or taxable income.

releasethekraken_1 · ‎04-26-2021

@stephenmorgan wrote:
Yea, I am sure you are correct. I just like things simple. I have no way of proving I have any cost basis on most anything I choose to sell so pretty much I have to report the entire amount of the sale as income.

Nothing in my post was a comment on any of that. It was about the likelihood of someone making $75,000 owing no Federal income tax.

stephenmorgan · ‎04-26-2021

It would just be simpler. I would not worry about record keeping and would just report the entire amount. If there no tax Liability by reporting the full amount then that is what I would report. I would have no need keeping records forever encase I get Audited.

I am retired and on a set income so I have already calculated a very close estimate of my Tax Liability for the year and I know approximately how much additional income I can receive without changing that Tax Liability. So if my additional income is not enough to change my Tax Liability I will not be trying to account for deductibles.

Maybe I am wrong, but I do not think I would have a issue because I did not claim deductibles.

stephenmorgan · ‎04-26-2021

Oh, I see.

releasethekraken_1 · ‎04-26-2021

@stephenmorgan wrote:
I am retired and on a set income so I have already calculated a very close estimate of my Tax Liability for the year and I know approximately how much additional income I can receive without changing that Tax Liability.

Maybe I'm completely misunderstanding what you're trying to say, but if you're already paying some Federal income tax, your tax liability increases with every additional $50 of income, based on the Tax Tables.

bedazzled5 · ‎04-26-2021

The good little tax payers won't even mind when Uncle Sam requires you to report sales from Craigslist and garage sales too. Wait until the IRS finds a way to tax the oxygen you breathe. 😉

zoop1953 · ‎06-13-2021

Yet the billionaires pay little or none!!! Somethings wrong with this picture.

zoop1953 · ‎06-13-2021

200 transactions - $20,000.00 is legal. No breaking of the law. Amazon pays close to $0.00

dbfolks166mt · ‎06-13-2021

If you are retired and drawing Social Security you may want to see how reporting the full amount could potentially impact your Social Security income depending on how much you sell and what the 1099 reports.