eBay

carstannar-0 · ‎12-06-2023

I have noticed if you sell something for instance that you purchased in the past and paid New York sales tax on it already and you only make a few more dollars than you had bought it for or even at a loss you are still taxed on it making the intent of EBay and other selling sites a moot point. Example if I purchase an 1879 Carson city Morgan dollar for 150, have to sell it later on to pass it down for 125 why would a state even consider taxing me on the full amount? The only way to make a profit is to sell from outside the United States or if you happen not to have to pay for what you sell. It’s ridiculous.

asset_liquidators · ‎12-06-2023

Then it becomes a loss of $25 on your taxes at the end of the year. No one knows what you paid for it until you file your taxes so how can you expect them to know you took a loss?

kensgiftshop · ‎12-06-2023

If you bought it for $150 and sold it for $125, there wouldn't be any profit to tax.

Have a great day.

fern*wood · ‎12-06-2023

Are you talking about sales tax or income tax?

buyselljack2016 · ‎12-06-2023

@carstannar-0

So, what is your concern here ?

Income tax?

Sales tax?

ebeths_eclectic_collectibles · ‎12-06-2023

Your post is kind of confusing as you refer to taxable profit and loss and sales tax. As far as selling at a loss it wouldn’t matter what country you sold the coin in as a loss is still a loss. Probably better to sell j the USA since you could take the loss your taxes.
Sales tax is based on the transaction amount and it paid by the buyer. You would pay sales tax as the buyer(unless you had a resale license) and when you sold it the buyer would pay sales tax

maxine*j · ‎12-06-2023

Are you talking about state sales tax? Sales tax is not a tax on merchandise. It is a transaction tax, a type of consumption tax. Each buyer who "consumes" the item, so to speak, pays the consumption tax at the time of the transaction.

Are you talking about income tax? No two people are in exactly the same income tax situation. Some people must file federal returns and state returns, some must file only one or the other, some do not have to file any return. Of those who file, some will owe federal and/or state income tax on income of $20 and others won't owe any tax on income of $20,000.

Whatever your complaint is, you need to make that complaint clear if you want useful info or comments.

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stainlessenginecovers · ‎12-06-2023

Almost ALL items are taxed every time they are sold. (see Thrift Stores, Antique Stores, Used Car/boat/atv sales etc.)

monroe67 · ‎12-06-2023

Like other posters, I am unsure of whether you are talking about sales tax or income tax.

You mention two specific states in your title, New York and Michigan.

Both of those states impose sales taxes on postage as well as the cost of items you purchase on eBay.

You also mention a very specific collectible coin, a Morgan dollar.
Here in the eBay Selling Community, there have been many many posts about sales taxation of coins. Part of the problem is that sellers don't always list their coins in the appropriate non-taxable category. Maybe the Resident Coin Expert will drop by with his words of wisdom.

". . . why would a state even consider taxing [you] on the full amount?"
Because the states need the money they get from sales taxes.

a_c_green · ‎12-06-2023

@carstannar-0 wrote:
Example if I purchase an 1879 Carson city Morgan dollar for 150, have to sell it later on to pass it down for 125 why would a state even consider taxing me on the full amount?

Basically, buyers pay sales tax and sellers pay income tax. Two sides of the same transaction. While you will have the full sales amount of $125 recorded on your tax return (as part of the gross total reported on your 1099), you would report the $150 cost of goods acquired, and thus you would have a $25 loss. You would not be taxed on that.

The 1099 you receive from eBay shows the money you took in for that year, which they must report to the IRS, but that's just the gross income. It's up to you at tax return time to report the deductions against that number (costs of acquisition, expenses, fees, etc.), so by the time you've taken all your deductions, your net income is going to be a much lower amount, and that's what you will eventually get taxed on.