12-02-2021 09:09 AM
I sell mostly used clothes on ebay. These are clothes that my family has worn and I sell at a loss. The majority of these clothes I do not have receipts for. How will this work moving forward when sales are reported? Will the IRS accept my report that I made no money on these without proof? I don't understand how this will work for the non-business people on here without getting screwed.
01-31-2022 11:53 AM
Lower reporting thresholds are going to make life a whole lot simpler for real professional sellers. Most of the competition that you don't want is going to quit. Those pros who pick thrift stores and garage sales for inventory are going to have a much easier time. If you are more like me and people bring stuff to you then you might find you suddenly have more people bringing you their stuff. I have already had 3 people I know quit part time web selling this month and sell me their remaining inventory.
01-31-2022 12:12 PM
You need to have a payout > 600.00 for it to be reported.
01-31-2022 12:34 PM
02-01-2022 11:41 AM - edited 02-01-2022 11:44 AM
@onefootflipper wrote:Lower reporting thresholds are going to make life a whole lot simpler for real professional sellers. Most of the competition that you don't want is going to quit. Those pros who pick thrift stores and garage sales for inventory are going to have a much easier time. If you are more like me and people bring stuff to you then you might find you suddenly have more people bringing you their stuff. I have already had 3 people I know quit part time web selling this month and sell me their remaining inventory.
Cool story bro. When grandma gets her disability or health insurance taken away for selling her old flatware from 1972 I'll be sure to give her your link. You regard yourself as a "professional" twice in your comment. That says all we need to know about how you feel. Leeching off of others with the government as your weapon. I'd rather see them throw things away then get taken to the shed by "professionals."
02-01-2022 11:45 AM
@mam98031 wrote:
I'm one of those that often recommended setting up a separate account for Ebay deposits. But never have I suggested that for those that are still trying to game the system. It was always recommended as I have a personal aversion to attaching my main personal checking account to anything. I have had a separate bank account for a long time and I feed all my internet sales into it as I sell on multiple sites.
It keeps things cleaner and bookkeeping is much easier.
From a record keeping perspective agreed, from an IRS standpoint it won't save them.
02-01-2022 12:38 PM
@wildpitchsports wrote:
@mam98031 wrote:
I'm one of those that often recommended setting up a separate account for Ebay deposits. But never have I suggested that for those that are still trying to game the system. It was always recommended as I have a personal aversion to attaching my main personal checking account to anything. I have had a separate bank account for a long time and I feed all my internet sales into it as I sell on multiple sites.
It keeps things cleaner and bookkeeping is much easier.
From a record keeping perspective agreed, from an IRS standpoint it won't save them.
Yes you are correct, but the recommendation was never intended for that purpose.
02-05-2022 09:41 PM
@singular-source wrote:is this income actual income? Not at all. They made a transaction that left them with nothing. Man these new rules are screwing normal people that just want to sell an old phone. Talk to an accountant??? How many people just selling an old item can afford an accountant.
You're dealing with a couple of types here:
1. Fake posting profiles.
2. Big government types that thing your lemonade stand should have been taxed when you were 6 for the "greater good" - (ie, social programs that enable dependency on government)
3. Bitter people that believe since their sales were high enough to receive 1099K's in the past now if people leave they will have less competition.
All of the above are well, what you think they are.
02-05-2022 11:13 PM
@singular-source was responding to a post by Nobody's Perfect. They do NOT have a fake profile. They are a long time member of the community that has had great information to share with other members for years. If you would look at they profile, you'd find they have a whole lot of Solutions here on the threads. Only the OP of a thread can select a solution. And I might just add they are a Mentor as well.
02-09-2022 09:45 PM
Hello Wildpitchsports,
Thanks for posting this! I feel the same way. If not more strongly. I am elderly myself. We pay tax on our regular income, then another 10.25% if I buy an item where I live, and now you want another approximately 15% if I sell my used item that I Bought in after tax dollars. How did this slide through when it's just fundamentally wrong to essentially tax me 40% total. Who voted for this? Oh right, a bunch of wealthy politicians who "need" to keep their "jobs".
I actually was able to live for a time off buying and selling collectibles on eBay - don't expect that - but it's just wrong to tax me on what I already paid taxes on. 😞
02-09-2022 10:50 PM
@tinaburdo wrote:Hello Wildpitchsports,
Thanks for posting this! I feel the same way. If not more strongly. I am elderly myself. We pay tax on our regular income, then another 10.25% if I buy an item where I live, and now you want another approximately 15% if I sell my used item that I Bought in after tax dollars. How did this slide through when it's just fundamentally wrong to essentially tax me 40% total. Who voted for this? Oh right, a bunch of wealthy politicians who "need" to keep their "jobs".
I actually was able to live for a time off buying and selling collectibles on eBay - don't expect that - but it's just wrong to tax me on what I already paid taxes on. 😞
This is INCORRECT information. Just because you get a 1099K that doesn't automatically make whatever it says to be taxable income. Ebay doesn't make such decisions nor does the 1099K. It is merely a form.
The lowering of the threshold on the 1099K is based in good reasoning. Certainly many disagree, but those that disagree are sometime mistaken as to what it means or they have other reasons.
You need to do your homework. Income you make from selling stuff from around your home is NOT taxable. You will have to claim it on your Federal tax reports if you get a 1099K, but if you fill the forms out correctly, you won't owe any more income taxes on those monies.
So spend some time learning. It really isn't so complicated that you need an accountant, but if it makes you feel better it could be $100 well spend to visit a CPA and get the scoop. Otherwise you can do your own research and learn from it.
02-10-2022 02:10 AM
I guess a lot of 'hobby' sellers have never heard of deductions. There should be, or maybe is a book called Taxes for Dummies. Not calling them dummies, but because of Volkwagons for Dummies I was able to tear an engine apart, fix it, and put it back together. True story, and I'm a female. Of course I was braver then.
02-10-2022 05:08 AM
@nobody*s_perfect wrote:
@singular-source wrote:is this income actual income? Not at all. ..
You're allowed to have your own ideas about what is income, but if you get a 1099-K from eBay, then the IRS believes that's income.
The IRS understands that what is put on a 1099-K is GROSS income, and they know that only NET income is taxable.
02-10-2022 06:27 AM
And if you don't report the 1099-K amount somewhere on your 1040, you will get a bill for back taxes that has inferred that it's also your net.
02-10-2022 06:31 AM
I think your leaving off one type.
02-10-2022 10:16 AM
@pgh_pen wrote:
@nobody*s_perfect wrote:
@singular-source wrote:is this income actual income? Not at all. ..
You're allowed to have your own ideas about what is income, but if you get a 1099-K from eBay, then the IRS believes that's income.
The IRS understands that what is put on a 1099-K is GROSS income, and they know that only NET income is taxable.
The funds represented on a 1099K has NEVER been "Gross income". It is and always has been Gross Receipts. The total amount of money that came into your account BEFORE any deductions of any kind to include refunds and cancellations.