1099-K

[rdd2658]

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....

[katzrul15]

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@winterpalace25 wrote:

I am a retiree and file a Schedule C for my little bit of supplementary income.  A 1099k changes nothing.

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About time.

An Honest Seller.  Finally.  These 1099k threads/posts make me nutz.  Just do the right thing, people.  If you need to rationalize/argue this for even 5 sec, you already know the answer.

The law is the law, regardless of whether or not you consider it "fair".

[wildpitchsports]

They will get wrecked. Not even just on eBay. The mercari, etsy, poshmark, shopify forums are all literally parroting the same themes. Hundreds out, most don't know, some like this one will stop selling altogether etc, etc.  I have been straight asking people on social media that are in the same genre as me and the responses literally out 8 + out of 10 are "huh?" "for real?" "didn't know that."

And those are just the ones that answer. Maybe after today that number will drop to 7/10 since it seems, uncoincidentally, all of the online sales platforms sent this at the same time or within 48 hours. 

Shopify - tutorials literally tell people to sign up for free accounts for 14 days, delete, do it again. All tied to the same social. W-r-e-c-k-e-d.

Affiliate marketing? You better believe those people will get hit too. "Content" creators. Hit.  I see people lumping in gig workers with this and I don't get that. You always got a 1099-NEC from Instacart, Doordash, Uber, Grubhub etc for anything over $600. Maybe just more confusion.

Even your eBay partner network revenue!

So in short, the correct answer to your question is based on what I am seeing and the reactions and people I have spoken to that number is rather high.

[mam98031]

I think it is a lot of puffing personally.  If they are willing to give up the money on Ebay for the amount it would raise their income taxes by, that is a bit silly.  It is just something they need to take into account when they are pricing their stuff.  

Many of those people likely would be exempt from income taxes anyways.  Since you took them by surprise in what you shared with them, then certainly they also don't know if their income is even taxable.

1099Ks are for internet gig workers.  If you earn it on the internet, it belongs on an 1099K.  And yes there are other kinds of 1099s that are for other kinds of income.

[wildpitchsports]

Nah, that number is way higher than you believe it is. Only a stupid person would sell stolen items to a local pawn shop or locally on FB marketplace or OfferUp. With local authorities they have a much larger grasp on a locally committed crime. Except in California apparently where you can steal everything.

Where do you think all of those smash and grab specials are going up for sale at? The trunk of their 87 Cadillac the local laundromat? 

In my example above you can't even buy them for that price from the original manufacturer themselves. I don't have much faith in people but I have to think one couldn't be that dumb to eat a $10 loss on 200+ boxes of an item that literally came out less than a month ago. 

And I never mentioned the wages, it was the abuse. The wages are sky high compared to what they used to be. But alas, the abuse stays the same - in fast food, retail & hospitality - it always has been and more than likely always will be. And unless there is an epiphany in those industries there always will be. And did you miss the part about the candle factory in Kentucky? That was abuse that led to people dying. That could and would happen anywhere.

That's ok?

[wildpitchsports]

Nope most of them really believed that as long as they stayed under the 200/20K threshold they didn't have to include it.  We live in a different world today - if it takes more than 30 seconds to read about it , or do any kind of extra work (ie, record keeping) they are disenfranchised immediately.

[mam98031]

WOW now that was NEVER anything said by IRS.  Boy are they in for some potential problems and maybe back taxes.  I simply find it hard to believe that ANYONE would think that the threshold on a form was AKA the minimum threshold for taxes.  That simply does not make sense.

As they say, ignorance of the law is not a defense.

[wildpitchsports]

Oh I know. And these are the types that deal in high end box breaks (kind of like a lottery but for sports cards where you can pick a team and get all of those players, etc.) Some of those boxes retail at 5 or 6 figures divided by 32 teams. Soooo now think of all of the payments processed on a $50K box break, all of the people that paypaled that money or sent through Patreon (omg that will be another one) and then those people try to resell those items here.

Not only that, those same high end box breakers have YouTube channels that clearly break out who paid what and for what and when live. 

No pun intended BUT .. it's a house of cards about to lose one on the edge really fast.

[mam98031]

I still think it is a bunch of puffing.  Just anger speaking first because they have a sinking feeling they may be in trouble with IRS and they may be right.  But it makes no sense at all to shut down a business that is making your money because you have to claim the income and pay your share of taxes on it.  That is simply fiscally irresponsible to say the least.

[wildpitchsports]

Perhaps. I do see that there are almost 1 million less baseball card listings and a couple hundred thousand less football & basketball card listings just since Sunday however. 

The smart ones will get their ducks in a row and plan accordingly. Like society that number isn't very high lol

[divwido]

Nail away then.  I'm having the best month ever and I'm making some good money.

So, whatever the issue is, I'm not seeing it and I don't care.   More sales for the rest of us.

[nobody*s_perfect]

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@wildpitchsports wrote:

Perhaps. I do see that there are almost 1 million less baseball card listings and a couple hundred thousand less football & basketball card listings just since Sunday however. ...

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Probably those sellers are on Time Away for Christmas. Even if they don't observe the holiday, it can lead to delayed shipping and unreasonable buyer expectations.

[dq3141]

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@wildpitchsports wrote:

Perhaps. I do see that there are almost 1 million less baseball card listings and a couple hundred thousand less football & basketball card listings just since Sunday however. 

The smart ones will get their ducks in a row and plan accordingly. Like society that number isn't very high lol

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And you think that's because of something that was announced months ago? And not because sellers are taking a break for the holidays?

Sure, whatever.

[assortedcollectibles]

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@wildpitchsports wrote:

Perhaps. I do see that there are almost 1 million less baseball card listings and a couple hundred thousand less football & basketball card listings just since Sunday however. 

The smart ones will get their ducks in a row and plan accordingly. Like society that number isn't very high lol

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I wonder if new markets and alternative payment options will arise as a consequence of all of this.

[luckythewinner]

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@wildpitchsports wrote:

Perhaps. I do see that there are almost 1 million less baseball card listings and a couple hundred thousand less football & basketball card listings just since Sunday however. 

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I remember back in the day there was a site that showed daily listing counts for eBay, and the community boards would  use fluctuations to justify whatever side of an argument they believed.

If eBay lost 1% of its listings in a day, we would see posts saying that eBay was in a free-fall and that losing 1% of its listings per day meant that there would nothing left in 100 days (bad math, but par for the course). 

If  eBay lost a quarter of its non-taxpaying and/or least profitable sellers, I think it would be fine. 

[maryrn59]

I agree, I have been selling on Ebay over 20 years, I am a collector of all sorts of items mostly antiques and collectibles. I have never gone over the the 20,000 dollar mark. Most of the items I am selling now have been things I have collected over the last 35 years. As many of you know most of these items have been reproduced so have loss value. I paid a high price for many that are worth next to nothing.  I purchased them at estate sales and flea markets, so no receipts.  I did do this as something to do on my days off and to make a few extra dollars.  I'm a nurse and retired this year. I have a large inventory mostly items I purchased and display in my home and decided to sell.  With Ebay fees of 21% and now with claiming of $600.00 and anything over is taxed at 28% it will become a loss.  Most resale items have already been taxed when the original owner purchased them. Now when you resell they are re-taxed and the government is getting more money on the same item...I can see if you're selling new items and you have to pay tax on them, but the small seller who is selling preowned items should not be penalize, it is those sellers who sell new items make out in the long run.  Yes I do pay my taxes and worked for the last 45 years.  So now what, stop selling on line, the government is after the small people that try to make a few extra dollars to make ends meet.  Out of my social security check I have to pay for medicare and a supplement so basically amounts to nothing not enough to cover my monthly expenses. Just a thought for you to think about.