Ebay Paypal and 1099K

[trishkay]

I have removed all my items from ebay after getting a notice that I would be receiving a 1099K for my January sales for a friend.. I know ebay is not at fault but the Government and their $600 limit has just totally destroyed the senior population who sold their antiques (collected over the past 50 years) and now have to pay taxes on them.. More of the Liberal plan to make everyone rely on the Government.. No more Ebay No more Paypal for me

[fern*wood]

I guess I don't understand why some states were already using the lowered threshold if it didn't start until March of this year.

[monica-sells]

just the facts ma'am..........

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The 1099-K reporting requirement was part of the American Rescue Plan Act of 2021 passed last year by Congress and signed into law by President Joe Biden. The effective date for these new changes is January 1, 2022

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Originally this requirement took effect in 2011, and Form 1099-K was first issued in 2012. It uses third party information reporting (banks and credit card merchants) in order to increase tax compliance and improve IRS tax assessments under President Barack Obama

[theteamsetguy]

Faerie_fae,

So, using your logic if I bought a 1955 Chevy for $10k with money from my w2 income which I have paid taxes on 5 years ago and I sold it tomorrow for $20k I shouldn’t have to pay taxes on the $10k profit?

I don’t think it works that way. 

[mdaneke]

After being a moderate seller I too am retiring. First the state started with taxes and now I have to report to federal for selling a couple thousand dollars of stuff so I can pay for my medicine and doctor bills. Goodbye EBay, It’s been a good run.

[mdaneke]

Absolutely! Anything over 600 dollars the federal government will send you a bill 2 years later for the 10,000 profit.

[nobody*s_perfect]

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@mdaneke wrote:

Absolutely! Anything over 600 dollars the federal government will send you a bill 2 years later for the 10,000 profit.

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If you don't report the income and declare your valid expenses, then the tax bill will be based on the full amount, in this example the $20K selling price. And it will probably also have penalties and interest.

[wildpitchsports]

It started 1/1/22 and those states (mostly blue) were simply greedy for more revenue

[monica-sells]

Quick & Dirty Sample...
(No Sales Tax State for sake of simplicity)
10 $60.00 Sales (14.55% Category)
Item Sale-55.00 ea. (X 10)
Shipping -5.00 ea. (X 10)
Gross Total-600.00 (Qualifies for a 1099-K)
Line Item on 1099-K 600.00
Amount transferred to your Schedule C - 600.00
Deductions from the Gross Amount
Shipping - 50.00
eBay FVF - 87.30
Fee - 0.30
(These are the 3 "Basic" deductions from the Gross)
Leaving "Taxable" Income at 462.40
(462.40)
Additional could be:
Original Price or Acquisition Costs:
(Receipt or Proof of Comparable Item Cost)
Each Item costs me $20.00 ($200.00 COG)
(262.40)
Shipping Material: ($69.00)
(Box/Envelope/Tape/Padding/Bubble Wrap/Labels)
10 Boxes @4.00 each/4.00 Tape/13.00 Bubble Wrap/12.00 Labels
(193.40)
Auto Mileage:
(Post Office Trips 5 miles each way)
10 miles X 10 Sales = 100 miles @ .56/mile
56.00
(137.40)
Internet Subscription
(% of use attributed to Listing)
120.00/month (25% ebay listing use) $30.00
(107.40)
Photography Material (Cameras, Tripods, Lighting etc....)
$30.00
(77.40)

....the list goes on and on

Net Taxable Income from 600 in Gross Sales is 77.40 without even trying hard

[mandisattictoyz]

Wait, the government?  Or Biden?  

[wildpitchsports]

The party in power of the government enacted these changes in March of 2021. President signed it.

[micba-7276]

I am a casual seller here on E-Bay...I enhance my hobby of building and operating large scale R/C cars by being able to buy and sell different models to enhance my enjoyment and not to operate or promote the hobby as a business, especially  a means to generate profits from sales. I purchase different R/C vehicles in order to try them out and see if I really like or not. I have resold several and lost money on the transaction. My point is, I do not buy and sell for reasons of monetary profit,  It's just because I share a love for the Hobby along with many others and now I am being punished and treated unfairly for that enjoyment as though I am trying to avoid paying my fair share of  Income Taxes.  I have paid my selling fees to E-Bay. I will not be selling any other items on E-Bay under the present circumstances. I am just an individual, not a business.

[kensgiftshop]

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@micba-7276 wrote:

I am a casual seller here on E-Bay...I enhance my hobby of building and operating large scale R/C cars by being able to buy and sell different models to enhance my enjoyment and not to operate or promote the hobby as a business, especially  a means to generate profits from sales. I purchase different R/C vehicles in order to try them out and see if I really like or not. I have resold several and lost money on the transaction. My point is, I do not buy and sell for reasons of monetary profit,  It's just because I share a love for the Hobby along with many others and now I am being punished and treated unfairly for that enjoyment as though I am trying to avoid paying my fair share of  Income Taxes.  I have paid my selling fees to E-Bay. I will not be selling any other items on E-Bay under the present circumstances. I am just an individual, not a business.

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Doesn't matter if you're a business or individual, you're supposed to be reporting your income anyway.

[deltilogical]

We've all grown up conditioned to accept taxes on every transaction and movement of money. 

I watch a lot of westerns and it reminds me of a time when people just opened their business and ran them.   Citizens didn't pay an "income tax".    The Fed made its income from customs fees.   There was no sales tax.  I'm sure someone has calculated what this unpaid mandate really costs individuals.   When it says a tax form will take 4 hours to complete - you will never get those 4 hours back in your limited supply of life. 

In 1913 an income tax was imposed (some say the Congressional vote was illegal).   It was pitched as being only for the rich.

yep, we like smooth roads but what is going on is way beyond that - and I believe 40% is paid to service the National Debt.   

People are now being conditioned to accept government surveillance of all individual data.  

[chapeau-noir]

Getting a little tired of people playing the senior card.

[gloryglorygifts]

I think that $600 threshold is going to scare a lot of seniors into retirement from market sites, or better yet, back to flea markets and fairs where they can sell in cash. But, it doesn't necessarily mean that you're going to pay taxes. It's all about the accounting.

I wish you well though!