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....

[laststopgeneralstore]

If you do less than 10k per year, you should be able to write all of that off easily, hell even up to 20k. I will do close to 150k this year and I will be real close to writing it all off. Their are so many things you can write off. Also, you are suppose to report ANY income you earn so this is not new. This will just make the people who are evading taxes, finally pay lol. Keep selling, change your business model, make adjustments & list more items. Their is plenty of money to make on eBay and you have more time than you've ever had. List more items, sell more items.

[luckythewinner]

---

@rdd2658 wrote:

even more so only to be taxed over 600.00 grass sales

---

If the new 1099-K form changes whether you report your income or not, is that because you failed to report it in the past?

Because the change to the 1099-K reporting limit does not change your tax liability one bit. Sellers have always been subject to income taxes on eBay income.

[wildpitchsports]

All of the above. You're not alone. I would hasten to bet that there are thousands if not more - of people that feel the same way and will be hesitant to sell online. This will disproportionally impact retirees, disabled folks and people that need the income the most. Meanwhile large corporations get away with claiming a fake "supply shortage" to raise prices up to 25% (even the $1 store!) to make up for actually paying semi-competitive wages and the profits they claim to have lost last year - even though Wal Mart, Target & McDonalds have had back to back record setting profits the past two years. 

While you have always had to report income, many people will feel the same way you do. This will also be the beginning of the end of online hobbies, such as toys, pokemon cards, sports cards etc in the capacity that they have been for almost 2 decades. A lot of people buy and resell to simply collect items they want.

Sad part is - most people won't even realize it until 2023 when they get the 1099-K. By then it will be too late and they will get wrecked.

[whatmorefabric]

So you are so special that you don't have to pay taxes like the rest of us?

[baantiques]

It's really not that bad.  You'll have to file some extra forms with taxes but if you use the software already it's not that much extra.  If you're a casual seller it isn't going to increase your taxes much if any.  I think people are making a much bigger deal of this than it needs.

[a_c_green]

---

@rdd2658 wrote:

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

---

You do understand that those are all deductible expenses, right?

[rosszonebricks]

You can retroactively run previous-year reports and grab the biggest 'deductions' off of a 1099k of your eBay fees paid and shipping charges.  Generally, this represents at least 30% right there.

Did you pay for shipping supplies? Envelopes? Mailers, self-adhesive labels, ink for the printer?  Generally easy deductions off that 1099k amount.

Now, starting today, and in the future, another easy one:

• Did you drive to the post office every day?  Track your miles.  There is even free software for your phone that records this for you.   Tracks all your car trips automatically and all you have to do is swipe left > personal, right > Business.   Export the report at the end of the year, and boom, there's another  deduction.

[wildpitchsports]

Perception is 9/10 of some peoples' reality - especially on the internet. Someone's post about "making changes to your business model & adjusting" is probably the most helpful statement I've seen.

[wildpitchsports]

Thank you providing sensible information that isn't ... well you know. Hope the OP finds it helpful and you are 100% correct.

[nobody*s_perfect]

Congratulations, you have posted the 500th thread about this.

As others have noted, this new lower threshold will not affect sellers who have been reporting their eBay income all along as the law requires. Lowering the threshold for a 1099-K from $20K to $600 is just catching smaller tax-evading fish with a finer net.  The IRS is making a list, checking it twice, gonna find out who's naughty ....

[wildpitchsports]

I just wish we could perhaps dial back the fear-mongering some. If you adhere to the tax laws and report as applicable when applicable using appropriate deductions you'll be fine. For larger resellers, a LLC would be  a worthwhile investment if you're serious about continuing to sell online. You could also roll non-eBay income into it with a broader net.

Fun fact: A lot will go the LLC route, then the politicians can say they "created jobs & new business startups at a record pace." Please no one watch cable news & always vote with your wallets and pocketbooks.

[nobody*s_perfect]

Why bother with a LLC?  Any seller can file a Schedule C and deduct their expenses to minimize their tax obligation.

[Anonymous]

You know, I wouldn't mind paying taxes and fees if I were making just a LITTLE more money here. To be honest, it's a little better this year but nothing crazy. I don't know, I figure the more money we make, the more eBay makes but since I'm not really making a lot, that equation isn't working anymore.

[maxine*j]

Here's the deal: 

No matter what spin you try to put on it, you have been running a small business on eBay for 22 years and should have filing your taxes accordingly;  i.e., reporting your income from your sales and paying any taxes due on the net.  Not doing so gave you an unfair advantage over sellers who did, who operated straight, so don't expect sympathy from them now that the jig is up for you.

=