Best way to sell bigger ticket items for a friend

[tecton7777]

I've been helping a friend sell some collectible game cards.  Not too much money - largest sale about $300, & so I just write a check to him, minus the fees & shipping.  I don't mind if I pay taxes on it since it's small. 

However he dug up something that's worth a lot more than that, and I would prefer the money go directly to him.   I spent a long time searching, but couldn't find a good answer on using my ebay account but his bank account as a second account.  I suspect that's not possible but......  

Simplest might be for me to just open his own account on ebay and I'd just do the legwork for him.  Downside there is he'll have zero feedback and will be selling some expensive stuff.  Is there any way to add his bank account to my ebay account, alongside my own?  Probably not, but thought perhaps one of you has experience and/or advice with this.

Thanks!

[m60driver]

Selling for friends is rife with danger, especially to the friendship.  Better to just purchase the item and sell it yourself.  And on the rare occasion when I do sell for someone, I split the sale 50-50 and pay the fees out of my half.  I also wait 30 days before sending money to my friend in case an issue arises.  Currently the only person I sell for on consignment is someone I have known for over 50 years who is also a long time seller on Ebay (his store has become highly specialized) and is someone who knows the ropes.

[luckythewinner]

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@tecton7777 wrote:

Simplest might be for me to just open his own account on ebay

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Smartest might be for him to just open his own account on ebay

[dugoldstuff]

I had predicted with the new $600 threshold to trigger a 1099, that this very scenario would become a problem. When I posted my idea, all the shills attacked me by saying, "Freeloader! You didn't pay taxes and ha, ha, now you have to." However, nothing could be further from the truth.

The point is previously, a 1099 was not triggered until $20,000, which was a high threshold. Now, with a low $600 threshold (starting next year), it will be.

If someone has a gross sales figure of (for example) $10,000, but only (for example) $5000 is his or her own gross and then he or she pays taxes on the profit (for example) of $2000, I am betting a flag will go up at the IRS: What happened to the other $8000? The seller, if audited, will have to point to his or her friends. The IRS will have to go after them if they didn't pay. And so, what if the friends deny their payments from the seller? What happens then?  Or, are the friends/family going to pay the seller the money for the income tax for the seller to pay? If so, what if the seller and family/friend are a different income tax bracket? And, would that even be allowed? What if the seller pockets the in-kind payment instead, and says he never got itt? The possibilities for issues are endless.

 I AM NOT SAYING TAXES SHOULDN'T BE PAID, NOR AM I AGAINST THE NEW RULE, NOR AM I SAYING THE NEW RULE IS EBAY'S FAULT (OH THE HORROR, ON THAT LAST ONE). I am actually for the new rule, so hyperventilating shills can hold your fire.

All I am saying is that the $600 threshold will greatly complicate anyone selling for friends/family, which will cut into the overall amount of selling that happens on eBay when sellers become leery of selling for friends/family, just like this post indicates.  All I am saying is that eBay stands to lose sales volume due to the new rule. I am saying a huge can of worms is now open. Just an observation. Nothing else. 

[a_c_green]

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@postingid7659 wrote:

Having a new to eBay member start selling expensive items is a recipe for disaster.  He'll draw every scammer from New York to Los Angeles. 

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Absolutely. I would suggest to him that since he's happy to sell on consignment, he should do so via someplace local that deals in such items and can pay him in cash at the end of the day.

[luckythewinner]

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@dugoldstuff wrote:

The seller, if audited, will have to point to his or her friends. The IRS will have to go after them if they didn't pay. And so, what if the friends deny their payments from the seller? What happens then? 

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The seller should be retaining proof of the payment to the friend (receipt, check stub, online transaction detail, etc.) to document the expense, just as a seller should do with any other expense they deduct. 

If the "friend" later decides to lie to the IRS, then the selelr should choose better friends. 

[postingid7659]

This is why you buy the items from the friend to sell yourself.  Then you can show a purchase price, a profit, and pay a tax based on that profit. 

[7606dennis]

One issue that many sellers don't take into consideration when thinking of selling for someone else is that some states laws require licensing when acting as an agent for someone else.  I would advise you to check with your state's Department of Business and Professional Regulation or whatever you state calls it to make sure you don't run into a problem.

I also suggest getting any arrangement made with your friend in writing so that there is no misunderstandings later on.  Too many friendships have been destroyed by misunderstandings about money. 

[tecton7777]

Thanks everyone for the wise words!   Will review at length and decide how to proceed.

[sodelight]

Sounds like you've been selling numerous items for your friend, been successful, and now they want you to delve in deeper with higher ticket. It's a shame your friend didn't simply open their own account from the get-go. They would have been more established by now, with lower ticket sales under their belt and a higher ticket transaction would be less risky. They seriously need to open their own account and start over with lower ticket. 

You sound like a very nice individual, it seems like this friend is taking advantage of that, especially by now asking you to list higher ticket, and keep assuming risk. A real friend wouldn't have asked you to sell for them in the first place. They may ask for help getting started, but to expect you to continue to make $ for them with nothing for yourself is not the best plan, except for them! If you don't put an end to this, it never will.

JMHO

[maxine*j]

Do you sell high-value items for your friends?  Would you be willing to do so?  I know "high value" is relative, but we know OP is talking about something worth more than $300, evidently considerably more. 

=

[stacy_pme]

Finally the right answer.  Thank You!

[dbfolks166mt]

Regardless of the path you end up going down tell your friend the #1 rule of selling on eBay is to never post anything you cannot or are not willing to loose or take a loss on. Also remember what some of the high target items are for the scammers. 

[dugoldstuff]

The seller should be retaining proof of the payment to the friend (receipt, check stub, online transaction detail, etc.) to document the expense, just as a seller should do with any other expense they deduct.

OF COURSE.

Never even suggested otherwise. The lecture is not needed.

This always happens when I post. Shills find a way to argue against something not even remotely stated.

All I am saying is the days of selling for friends/family on eBay may well be over with the new rule.

AGAIN: I am for the rule and for paying taxes. This is JUST an observation, due to the OP.

Okay?

[katzrul15 · Accepted solution]

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@tecton7777 wrote:

Thanks everyone for the wise words!   Will review at length and decide how to proceed.

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Good luck with whatever you decide!!  Let us know how it turns out!