New Tax Laws

[keystone911]

Anyone else thinking of closing their Ebay stores and sales due to the new tax law? $600 is a low threshold for taxes. For me I don't make enough for the loss of taxes

[itsjustasprain]

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@itsjustasprain wrote:

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@keystone911 wrote:

$600 is a low threshold for taxes. For me I don't make enough for the loss of taxes

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So if your taxable income was $50000 and now it will be $50600 how much higher will your tax be?

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Have you worked this out yet, or did you want more time? (Use the 2020 tax tables as an example.)

[57treb]

i have stopped my store and auctions as a matter of principle,,, we all need to pay our taxes,,but guys like me who are small -time,,will be better served just swap-meeting,,flea markets ,garage sale,,,these folks who make 100k per year on ebay can afford to pay accountant every month ,,i cant. ill sell elsewhwere,,im done w/ ebay.

[57treb]

i cant argue w/you ,, all true,,but for casual folks who dont want to work at itemizing everything,,,and just want to subsidize their soc. sec.,,,well just to much like work,,,i have sold on ebay for a good long time and feel they dont take care of sellers as they should anyway,,ill swap-meet from here on out,,no more for me,,,i think ebay and other selling forums are gonna die a slow death,,but good luck to those who stay,,,

[dq3141]

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@57treb wrote:

i cant argue w/you ,, all true,,but for casual folks who dont want to work at itemizing everything,,,and just want to subsidize their soc. sec.,,

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And who just want to evade taxes.

And who clearly aren’t just selling stuff from around the house.

eBay is just obeying the law.

[nobody*s_perfect]

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@57treb wrote: ...  for casual folks who dont want to work at itemizing everything,,,and just want to subsidize their soc. sec.,,,well just to much like work,,, 

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If you are just "subsidizing your Social Security," then there might be no need to keep track of expenses or deductions at all.  

If you have no other taxable income and if the amount on your 1099-K is below (1) the standard deduction and (2) the limit where SS reduces your SS check (if you're below "full retirement age"), then just reporting the full amount on your 1040 line 8 will not affect what you owe.

For 2022, the standard deduction will be $12,950 for an individual and $25,900 for a couple. If you're below full retirement age then you can earn up to $19,560 before SS starts deducting from your benefit check.  If you're at or above full retirement age, then there's no earnings limit.

Frankly, working at itemizing everything sounds like a lot less effort than packing up and spending the day at even just one swap meet.

[maxine*j]

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@57treb wrote:

i cant argue w/you ,, all true,,but for casual folks who dont want to work at itemizing everything,,,and just want to subsidize their soc. sec.,,,well just to much like work,,,i have sold on ebay for a good long time and feel they dont take care of sellers as they should anyway,,ill swap-meet from here on out,,no more for me,,,i think ebay and other selling forums are gonna die a slow death,,but good luck to those who stay,,,

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Two points:

Most people on Social Security, whether or not they reach full retirement age before they begin to draw benefits, will owe no taxes on their eBay income. 

All those folks drawing Social Security can do so because their empoyers did everything straight -- hired above board and then paid their own and their employees' share of FICA.  Good thing for them their employers were on the up and up with Uncle Sam.

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[divwido]

NO.

[heckofagame]

To those of you choosing to sell elsewhere, I hope you will be taking cash as all payment processors are required to follow this revised reporting rule. 

[maxine*j]

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@my_boston_baked_beans wrote:

Great point as a small seller myself selling clothes from my closet that I have acquired throughout the years new with tags. Retired. downsizing, clearing house. My items are nicer than a yard sale or Goodwill.

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You have received 1,750 unique feedbacks as a seller, so you have cleared a minimum of 1,750 items (and likely a great many more) from your home in nearly 14 years of downsizing.   You surely can't have much left to get rid of, so you might just donate it and be done with the hassle of selling, eh?

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[yuzuha]

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@maxine*j wrote:

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You have received 1,750 unique feedbacks as a seller, so you have cleared a minimum of 1,750 items (and likely a great many more) from your home in nearly 14 years of downsizing.   You surely can't have much left to get rid of, so you might just donate it and be done with the hassle of selling, eh?

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Yeah, it becomes very hard to believe claims of "closet cleaning" or "downsizing" when people have seller feedback in the multiple hundreds or thousands. Sorry, but at that point you're running a business whether you personally think of it that way or not.

[maxine*j]

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@heckofagame wrote:

To those of you choosing to sell elsewhere, I hope you will be taking cash as all payment processors are required to follow this revised reporting rule. 

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And, having opted to become part of the all-cash underground economy, they'd better be good at (a) watching their backs to be careful about whom they deal with and where they meet them;  and (b) recognizing counterfeit currency, in which they will sometimes be paid (as someone here recently experienced).

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[maxine*j]

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@57treb wrote:

i have stopped my store and auctions as a matter of principle,,, we all need to pay our taxes,,but guys like me who are small -time,,will be better served just swap-meeting,,flea markets ,garage sale,,,these folks who make 100k per year on ebay can afford to pay accountant every month ,,i cant. ill sell elsewhwere,,im done w/ ebay.

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Anyone literate enough, and computer literate enough, to sell on-line is easily capable of doing the basic book-keeping and fundamental record-keeping needed to track income and outgo for tax purposes.   It really is not at all hard.   I think you do yourself a disservice if you think you are incapable of it.

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[quayvar]

You opened a can of worms by asking this question. Notice how the big debate started, the accusations fly, and the infighting ensued? One side accuses the other of screaming, while they are basically doing the same instead of offering some helpful advice or information. Good grief. In the end, each person has to make a choice for themselves wheather they wish to roll with the changes, or close. End of story.

[nobody*s_perfect]

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@yuzuha wrote: ... Yeah, it becomes very hard to believe claims of "closet cleaning" or "downsizing" when people have seller feedback in the multiple hundreds or thousands. ...

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On my main selling IDs I have thousands of feedback from selling personal items.

Some families have a LOT of stuff.  I am an anomaly in a family that is borderline hoarders. For the first ten years I sold on eBay, I would just go into the attic, grab a box, and list the stuff.  One year at prom time, I had a whole month of selling my late husband's vintage cuff links and sets of tuxedo studs. When my mom died, it took me two months to list all her dolls. The stuff in my dad's basement workshop could keep an eBay store going for years, he has the spare parts from converting the furnace from oil to  gas in 1987, plus the antique tools from his own dad's carpentry shop. He and my sister each live alone in 4-bedroom houses that are packed full. My nephew has 3 storage units full of stuff that's probably worth selling.

[dq3141]

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@quayvar wrote:

You opened a can of worms by asking this question. Notice how the big debate started, the accusations fly, and the infighting ensued? One side accuses the other of screaming, while they are basically doing the same instead of offering some helpful advice or information. Good grief. In the end, each person has to make a choice for themselves wheather they wish to roll with the changes, or close. End of story.

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This is a discussion forum. If people wanted to just “roll with the changes or close”, they can do it without starting a discussion thread, where their comments will be discussed.