I did 100% Promotion 😂

[raphsrevengeshop]

 lol i did 100% Promotion

What you earned

Order total: $7.77

eBay collected from buyer 

Sales tax: $-.48$

Selling costs 

Transaction fees: -1.77$

Ad Fee General -7.77$ 

total earnings: -1.81$

they had the nerve to charge me the selling fees 😂😂

so when i do taxes does this get reported as well? or do i have pay to the taxes on this “sale” too?

[ebooksdiva]

You would write it off as a loss.

It is probably at more of a loss since you didn't include cost to ship. So you basically sold an item to make eBay more money. 

Question.....Why on earth would you promote 100%? You should have known what would happen. 

[monica-sells]

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@raphsrevengeshop wrote:

so when i do taxes does this get reported as well? or do i have pay to the taxes on this “sale” too?

"...if you need to ask that question, that might be why you sensationalized the obvious..."

[hartungcards]

Whatever made you think they wouldn't charge you selling fees just because you made the absurd decision to promote at 100%?

[inhawaii · Accepted solution]

Thank you for bringing this to my attention.

In the future, I will make sure NOT to promote anything at 100%.

[meme6253]

WOW, I thought ebay made enough off of us, but you just literally gave them the entire sale & you lost money to boot, I will never understand this one!

[monroe67]

"lol i did 100% Promotion"

LOL ??   ROFLMAO !!

But seriously -- 

Your question:  "so when i do taxes does this get reported as well?"  eBay will report to the IRS and to you (and possibly to your state tax authorities) when you meet the minimum reporting dollar amount set by the IRS.  I believe that is currently $5,000, though I could be mistaken AND that dollar amount could still be changed before the end of this year.   (It was changed close to the end of the year during the last two years.)   

"do i have pay to the taxes on this “sale” too?"  No, you will not pay income taxes on the funds you lost in this transaction.  Income taxes are applied to profits.  The entire transaction was a loss for you.  Even the  additional $1.81 that you still owe to eBay.  Therefore, you did not profit on this sale transaction.  eBay's fees are business expenses which you are allowed to deduct when you are preparing your federal tax return and Schedule C next year.  

BTW, yes, it was a "sale" because your buyer did pay to purchase the item you sold.  YOU have a loss  only because YOU CHOSE to pay eBay 100% in advertising costs by CHOOSING that as your promoted listing percentage.   Why on earth would you choose 100% as your promoted listing percentage?
[Still chuckling.]  

[kensgiftshop]

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@raphsrevengeshop wrote:

 they had the nerve to charge me the selling fees 😂😂

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You didn't really think they would waive their fee's just because you didn't make anything did you?

[inhawaii]

Dear Ebay,

I recently sold something and lost money.

Is there any chance you will consider waiving my fees?

Sincerely,

Seller

[buyselljack2016]

@raphsrevengeshop 

Well, now you have sort of an answer to your ? from the 12th. No more "guessing". Now we know.

Thanks for being the test rabbit😊

Was this a "donation" listing?

[mantle1951]

Do you really think the IRS is going to come after you for $7.77?? LOL

[12345jamesstamps]

That could be interesting but I think it won't be added to net sales.

I had an auction I cancel on the last day cause it only had a bid of .99.

I got charged .10 cents for early cancel of an auction with a bid. LOL.

[luckythewinner]

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@raphsrevengeshop wrote:

so when i do taxes does this get reported as well? or do i have pay to the taxes on this “sale” too?

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Of course it gets reported. 

Managed Payments is required by law to report all gross payments processed on your behalf. If a buyer pays you through eBay, that is a gross payment that eBay processed on your behalf. 

It is up to you to report the expenses and make sure you get credit for the loss you took, just as you would for any other transaction where you took a loss. So you would only pay taxes if you made another bad choice (on top of the original bad choice of promoting at 100%).

The fact that this loss arose from high promotion fees rather than some other expense (ex. high inventory costs, not charging enough shipping, etc.) does not affect the reporting requirement at all.

[1786davycrockett]

@raphsrevengeshop 

Unless math has changed in the last 300,000 years, "100%" still means 100%.

That means all.  Everything.  The whole kit and kaboodle.

Leaving you with a handful of "Gimme", and a mouthful of "Much obliged."

[fashunu4eeuh]

@raphsrevengeshop 

Having a little laugh at the expense of the volunteer posters here?

It’s not funny .