11-19-2022 07:05 PM
Sellers should NOT receiving a 1099… for products sold to Buyers… through EBay. Surely we have some Tax Accounts out there knowledgeable in this area (?)… In this cases… eBay is a Third Party transaction payment processor. Sellers are paid by our Buyers “ through “ eBay. In the world outside eBay… When an Individual sells a product or service to a Buyer… The seller does not receive a 1099 from the buyer… unless the transaction exceeds $500.00. We ebay sellers do not sell products to ebay … and ebay does not buy(pay us) for products. IF this goes into effect… It will create a real headache for all of us. I am relatively sure I am correct… but stand to be corrected… A 20 year eBayer.
11-20-2022 10:47 AM
I've run out of words over this topic.....
11-20-2022 11:37 AM
"20 year seller here..."
11-20-2022 12:43 PM
"I realized that being told that they're looking at nothing more than a minor change . . . . is somehow beyond their ken."
True !!
11-20-2022 12:48 PM
" A 20 year eBayer.:
A twenty three year Ebayer, who, when I was selling, always declared my Ebay sales.
11-20-2022 01:02 PM
@kensgiftshop wrote:It's only going to be a headache for the ones that haven't been reporting their income.
Those of us that have been reporting our income like we are supposed to be doing, we'll be ok.
Amen and AMEN.
Not sure what "headache" the OP is referring to??
11-20-2022 01:20 PM
@kensgiftshop wrote:It's only going to be a headache for the ones that haven't been reporting their income....
It's going to be a headache for the ones who haven't been reporting their income because they don't have any.
A significant number of eBay sellers are small-scale "garage sale" type sellers who have a net loss at the end of the year due to selling personal possessions (clothing, household goods, collectibles) for less than they originally paid for them. These sellers don't have a net profit, and therefore don't owe any income tax, never did, but now have to fill out paperwork because they grossed over $600 so eBay sent a 1099-K to the IRS.
This may actually be a good thing for anyone selling at a net loss. The loss can be used to offset other tax liabilities for a limited number of years or if you are a corporation forever. As always seek the advise of a professional tax preparer you may come out ahead.
12-19-2022 10:37 AM
So do sellers have to maintain receipts for anything they have bought that they might sell on eBay in the future, or provide some sort for research on current value, as to provide a cost basis (like anything else..stocks etc.)?
12-19-2022 10:46 AM - edited 12-19-2022 10:49 AM
@1steph_18 wrote:Sellers should NOT receiving a 1099… for products sold to Buyers… through EBay. Surely we have some Tax Accounts out there knowledgeable in this area (?)… In this cases… eBay is a Third Party transaction payment processor. Sellers are paid by our Buyers “ through “ eBay. In the world outside eBay… When an Individual sells a product or service to a Buyer… The seller does not receive a 1099 from the buyer… unless the transaction exceeds $500.00. We ebay sellers do not sell products to ebay … and ebay does not buy(pay us) for products. IF this goes into effect… It will create a real headache for all of us. I am relatively sure I am correct… but stand to be corrected… A 20 year eBayer.
Where have you been? Under a rock? The $600.00 threshold for 1099 was announced months ago. And it was passed by Congress. It is already in effect. So complain to your congressman. Not eBay, eBay is just following the law.
Where do you get the idea that 1099s come from buyers? No it comes from eBays accounting department.
It only creates headaches for those who don’t file their taxes properly every year. Any moneys made from eBay sales are considered taxable income whether is is $1.00 or 20,000.00.
12-19-2022 10:52 AM
In all actuality, Biden in March of this year included this as part of the stimulus package he distributed at that time.
12-19-2022 11:05 AM
The only difference this year will be the form.
How have you been doing it up to now?
12-19-2022 11:56 AM - edited 12-19-2022 11:56 AM
Does anyone know if the 1099k issued from eBay will be TOTAL SALES or NET SALES (total Sales LESS eBay selling costs) ?
12-19-2022 01:09 PM
@nobody*s_perfect wrote:
@kensgiftshop wrote:It's only going to be a headache for the ones that haven't been reporting their income....
It's going to be a headache for the ones who haven't been reporting their income because they don't have any.
A significant number of eBay sellers are small-scale "garage sale" type sellers who have a net loss at the end of the year due to selling personal possessions (clothing, household goods, collectibles) for less than they originally paid for them. These sellers don't have a net profit, and therefore don't owe any income tax, never did, but now have to fill out paperwork because they grossed over $600 so eBay sent a 1099-K to the IRS.
If they sell anything, it's income.
It's up to the seller to prove if they made a profit or not, which isn't that hard.
The items I sell, I've had them for years or they were given to me to sell.
I don't have any receipts and never have had any.
At the first of the month, log your total income from last month and any expenses.
Do it every month and you have everything you need to file your taxes.
12-19-2022 01:13 PM
12-19-2022 01:21 PM
Yes you need to be corrected. You will receive a 1099K for your 2022 sales some time in January 2023. if your total revenue was 600 or more.
12-19-2022 03:26 PM
Yes-eBay is the "middleman" for processing the cash payments and the IRS requires the middleman to report those transactions if $600 and over. It's just like stock transactions. If I tell my stockbroker to sell 100 shares of Microsoft stock, the investment firm (being the middleman) handles the payments processing and is required to send me a 1099 even though I did not sell to the investment firm but rather to another person.