eBay

rdd2658 · ‎12-21-2021

Looks like the small seller on ebay is now going to have that last nail in the coffin to stop selling on ebay. It used to be a great place to make some extra money, but I have been finally priced out. Overhead like, cost of item, fees, and the ultra high USPS postage changes over the last few years (price by area of the country, and the biggest scam of Christmas surcharge that starts OCT 1st of each year now, retired mailman here, NEVER have I delivered xmas mail in Oct or Nov!), makes a profit margin of only 10% not worth it,,,,even more so only to be taxed over 600.00 grass sales. zero money to be had anymore. Yes, just increase your price, most would say,,,,well after 22 years on ebay I know what prices people are willing to pay,,,,,an increased price is not part of the fix....

wildpitchsports · ‎12-21-2021

If you want to grow beyond a simple eBay seller level then it would be beneficial, depending on an individual's circumstances. Some people can't take that gross figure pre-deduction figure into ordinary income for a variety of reasons.

If you do the LLC it begins the process of giving your business its' own legs to stand on in my opinion. At least a starting point. It's easy enough to switch your accounts to a business account as well. Hell you could even get your business credit and have a higher change of getting a loan for capital once established.

That way you'll still be tax compliant and even though you'll pay some variety of employment tax, the benefits will be greater and you only have to show profits 2/5 years I believe.

golfingaddict · ‎12-21-2021

eBay took some sympathy for the mom selling her old clothes, children's clothes and a few household items.

I'm not sure how I view a seller with almost 29K feedback, almost 700 new items and over 500 feedback for a year when he complains about taxes.

Maybe the IRS will take pity on the soccer mom. The OP? May be a harder conversation.

What is confusing to me is how the OP managed to never get a 1099 before now.

What is the fix?

Report your income, take the deductions?

m60driver · ‎12-21-2021

This will only impact small sellers who (1) have not reported their net income and (2) those who have low margins.

jda11121 · ‎12-21-2021

There are several reasons sellers are not making enough. Their prices are too low, their expenses are too high or people just are not looking for what they are selling. None of these are eBay's fault.

itsjustasprain · ‎12-21-2021

@rdd2658 wrote:
makes a profit margin of only 10% not worth it,,,,even more so only to be taxed over 600.00 grass sales.

Oh come on. A glance at your feedback shows that you probably make over $600 gross in just one month - not to mention other sales to buyers who do not leave feedback. If you learn how to claim your rightful deductions for your expenses to offset your gross sales then you will be fine.

@rdd2658 wrote:
zero money to be had anymore. Yes, just increase your price, most would say,,,,well after 22 years on ebay I know what prices people are willing to pay,,,,,an increased price is not part of the fix....

Okay. Bye!

(I know you will still be here a year from now.)

hawkwind5454 · ‎12-21-2021

There are several "equations" that don't work anymore 😟

jda11121 · ‎12-21-2021

If one can not adapt, one needs to find something else to do. If the equation does not work, you need to change the equation.

hawkwind5454 · ‎12-21-2021

Thank you, Mary Poppins...🙄

farmalljr · ‎12-21-2021

Bye! Good luck!

You have had over 100 sales a month for the last three months. This isn't a hobby, this isn't cleaning your closet. It's a business. People like you are the reason that congress passed the law. You are most likely not reporting the sales from eBay and where ever else you are selling. In turn not paying taxes on whatever would be due.

At the same time, you are suppressing market prices, because you are not accounting for overheads and expenses a regular, law abiding, business has to pay. Yes, change is coming. Yes there are a few crying about it like all internet commerce is going to suddenly stop or markets will crash. What WILL happen is markets will correct, and tax evaders will get pinched. It may be a little rocky at first, but this too shall pass. This will make a law abiding seller's business, BETTER.

Yes, it's going to get a LOT more complicated for criminals. I hope all of the people who have been evading taxes ILLEGALLY get pinched. I hope they all remove themselves from online selling. I say get a JOB if you need extra money and can't be bothered doing things legally. Everyone and their brother is hiring. Why the need to commit a criminal act (evading taxes), if you are just looking for some extra spending money?! Why is a person's first inclination to commit an illegal act, if they want to "earn" some extra money? Why take the bread out of the mouths of others who do what's right and proper, so YOU can make a few bucks?

"Oh! But the retirees, the single mom's, the disabled!". Don't care. My field of "F" 's is barren. If you want to earn money, do it legally and above board. "But they fund their hobbies by buying and selling!" Don't care. Do it legally.

I support ANYONE to start their own business. But do it right and above board. Doing anything shady, I hope they get slammed into a cell. Giving pity to anyone evading taxes, is to give pity to criminals. I don't care about their status, gender, religion, age, etc. A criminal is a criminal, and they should be treated to blind justice.

umoraski · ‎12-21-2021

I agree - if you are a small seller like me - I am retired. There are a lot of write offs. I try to pay as little as I can for an item. This way my profit will be more and I can list less than other sellers. Because the Fees are so high - at least you can deduct them from your sales. I also keep track of my mileage to the thrift stores - this can be deducted. Hopefully it won't affect me that much. I feel fortunate.

soh.maryl · ‎12-21-2021

Have noticed an increasing number of posters here who appear to believe this is an eBay rule.

It's a Federal IRS law.

downunder-61 · ‎12-21-2021

The utter outrage from law breakers [tax evaders/cheats] is always entertaining and I am sure I have seen this topic before, oh yes, here are some, @rdd2658 feel free to browse…

Threads on tax law

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skeletonstore · ‎12-21-2021

HA!!!!! At all the people acting like this is no big deal. You can write things off? Sure....let's write something off you bought in 1969 when the dollar was much stronger than it is today and it's sure not going to look like a write off to the irs tax code. What if they want receipts? My father used to keep all his receipts, even the one from the stork but who really has old paper receipts? A lot of the things people sell are most definitely used like clothing. What about the rules in different states? Most people selling stuff around their house they bought at walmart or some other store are not going to have any tax write off unless they estimate what they paid. There's a big difference selling jeans you bought before covid that no longer fit you and selling a vintage star wars toy you saved in the package someone paid you $10k for. That doesn't even take into account the new tax form you will have to use and how you will be charged for tax prep even if you do it yourself. It should be illegal to tax a person twice. Nothing used should be taxed. I have a better idea, let's tax congress each time they're re-elected. Special luxury tax. While we're at it we can form a 4th branch of government where we tax the irs how we see fit. We're not at war, so there shouldn't even be an income tax. This power grab is because those who make a living off of other people's income or blood completely on their own destroyed the economy and workforce with a virus. Ever listen to Kary Mullis the guy who invented one of the testing kits/methods? He won an award. Every hear what he said about fauci? He called him a fraud and said he didn't know anything about virology. He said that in 1996. So those leaches up on capital hill want money and they don't care who they have to step on to get it. They could cut spending. Just look at all the pet projects they add to bills, including ones to help Americans during covid. Kennedy art center? What did that have to do with covid? I think the Kennedys can afford that themselves(provided they didn't drink all their money). The rich always get all the loopholes , all the bailouts, and many don't even pay taxes. Since yellen has been the most outspoken I think we Americans should demand a full audit of the fed.

wildpitchsports · ‎12-21-2021

Just to touch on this:

Everyone and their brother is hiring.

Assuming you are a big government supporter let me just ask these two questions:

1. Since everyone is hiring & should go into retail , hospitality & fast food (that's where most of the hiring is and the jobs are that no one wants due to said abuse) - do you support someone who is disabled and elderly being abused and underpaid in said institutions? Because in reality, that's what happens. Or maybe they should go work in a candle factory in Kentucky? See how that worked out. You support that?

2. And I suppose it was okay for all of the looters in the summer of 2020 to sell their stolen wares on eBay and wherever else? Or were they excluded because of oppression?

I see a lot of people talking about "criminals," "justice," and "law."

Some final thoughts on that:

The true criminals are the ones that have sold stolen merchandise on here for years and continue to do so (which is more the reason legitimate sellers get undercut than anything else.)

For example - box of sports cards costs $19.97 plus tax in Walmart. Sellers start to sell them at $29.99 free shipping. Before you know it a TON of them show up on here at $14.97 and they have hundreds of them. Clearly you aren't selling hundreds of boxes at an est. $10 loss on each right? Unless you didn't pay for them in the first place...same can apply to anything sold online.

Maybe eBay should start requesting proof of source like Amazon does for certain categories. That would shut all of the black market items down that are really undercutting legitimate sellers and even the playing field.

And this reporting change will also hopefully shut down the clear money laundering that is taking place on here. Go research Princess Diana beanie babies and Mac Jones Donruss PSA 10 under sold items and you will see money laundering at its' finest.

While I understand and accept that taxes are due on online "sales & income" calling for grandma and grandpa to be thrown in prison for selling their 1970's flatware or someone with a legitimate disability who makes cute crafts to sell seems to be a bit extreme.