New Tax Requirements on selling. E bay it may be really bye bye

[lovett-1000]

Sad on e bay to have to report sellers with over $600 in sales profit. Free mailing is going to disappear on my listings.  About 95% of all things I sell I offer this service.  It is just going to be to much of a hassle to keep up with all the gas receipts.  Because after all them with the cost of my mailing supply's my taxes will be negative.  My innovatory is really very high since I sell wood.  But I keep it listed at a very low amount lately.  Because I sell on here as much as a share not really never hardly made any real $. Like I have a 1 pound $ 13.99 listing and make really about $2 for from 15 to 40 mins of my time. Be for real.  The fees more fees taxes and more taxes is about more than I want to share more for . I live 14 miles from the post office.  Make a trip almost every day, I know I could use them pick up but. I would be on their clock not mine and do not use.  My goal is fastest mailing.  I pay lots of taxes on my property and trees on it every year. I Pay taxes on all I buy. Then sell it and it is taxed twice again.  I am a very skilled man but staring to feel like a dummy.  So e bay may see the vacation I am on a go lots longer.  The I.R.S should be abolished.  It is nothing but another away saying you will never really own nothing America is a lie. Saying you own your home everyone knows that.  But now with this new tax deal you do not even own your anything. Because you better keep up with the receipts you paid for it.  And what you sold it for. On old items that have been taxed to death already who says what its worth ? in your innovatory. It went from 200 sales and 1000s of dollars to report to $ 600 to report. What dose that say about the jerks we elected.  Thanks and best wishes to all that read my post.  

[fern*wood]

There is no new tax deal.  Reporting our sales when we file our income taxes has been the law forever.   Never has been fun and never will be, but it's the law. 

[wildpitchsports]

Lots of sellers & hobbyists are in the same boat as you! Good luck in your future endeavors!

[janet9988]

"I Pay taxes on all I buy. Then sell it and it is taxed twice again. I am a very skilled man but staring to feel like a dummy."

Why are you paying taxes on items you buy and then selling them. A skilled seller would have a tax exemption  and buy using that to NOT pay the sales tax.

Sales tax and income tax are two different hings.

You should have been paying the taxes all along.  This not new.

[albertabrightalberta · Accepted solution]

@lovett-1000 

So you're admitting to evading taxes to the IRS in the past? 

[lovett-1000]

No the requirement were different.  Under new deal coming in 2022.  The new requirements are sick and ridiculous. You go figure.  Sorry your post was accepted as my solution I mashed the button wrong.  No way to change.   

[lovett-1000]

Its just the new requirements is showing how messed up it really is.  From $12,000 to $ 600. What a rip off.  On things that tax has been paid on more than what they are worth anyway since they were new. 

[lovett-1000]

You must have a very large selling deal. And use to ripping the government off yourself. Is it your wrongs bothering you or the wrongs of others you are afraid they are getting away with. I work hard for every penny I got and do not owe a system that is supporting welfare freeloaders. That make more than me sitting home on their tail. Not doing anything but using the system. I do not cheat the government on my taxes. But why support more than I have to when it is not going to good but bad.  

[7606dennis]

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@lovett-1000 wrote:

No the requirement were different.  Under new deal coming in 2022.  The new requirements are sick and ridiculous. You go figure.  Sorry your post was accepted as my solution I mashed the button wrong.  No way to change.   

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I'm not sure I understand where you're coming from.  While the change in the 1099 $600 requirement may be new, the requirement to report one's earnings is not.  The new requirement is one that affects the financial institutions handling the transfer of money between the buyer and seller.

With regard to your wanting to abolish the IRS, I'm afraid that you'll probably need to write your congressman about that.  However, I probably wouldn't hold my breath waiting to see it abolished though.

[lovett-1000]

On lots of items I paid taxes years ago. I just do not care about them as much or want to share to someone can use.  So taxes were paid.  To get you straight to assume I have not been paying taxes I have paid loyal all my life. Just did not file this e bay as it was a lost anyway.  Did not want to keep up with all the hassle of more paper work I made 0 off.  And e bay even as I requested would not give me a 1099. I got 0 in stupid stimulus. And am a retired veteran and do right by the government.  Taxes on my home that has been in my family for many years amount more than I could get out of it.  But I guess you love the I.R.S. 

[mrdutch1001]

awh poor fella...not ben declaring your online sales $ on income tax...boo hoo....

if this is a deal breaker for you, well so be it...bye bye

[dbfolks166mt]

     You are bundling several different tax topics into one post. First sales tax on e-commerce sales was the result of a Supreme Court decision. It simply applied already existing state sales tax laws toe commerce sales. The buyer is the one who pays the sales tax on eBay sales not the seller. It is no different than any other item you purchase or sell in the B&M marketplace. 

     The third party financial reporting requirement is NOT unique to eBay and/or the Federal Law that takes effect in 2022. Many states already have their own third party financial processor reporting requirements and for those of us that live in those states we have already been getting 1099's on the state required lower reporting thresholds. For those that have been paying taxes this is not a problem or an issue and is in fact a revenue validation check to compare against their own personal records. 

     As far as the political side it's really not relevant if you have been paying taxes all along. This is a done deal although I expect at some point in the future the reporting threshold will be raised a bit once the IRS determines the volume of incoming 1099's it is going to have to process. 

[kensgiftshop]

@lovett-1000 

The only thing that changed is the lower amount to be reported to the IRS.

You report your income like before, or like you should have been doing all along.

[7606dennis]

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@lovett-1000 wrote:

On lots of items I paid taxes years ago. I just do not care about them as much or want to share to someone can use.  So taxes were paid.  To get you straight to assume I have not been paying taxes I have paid loyal all my life. Just did not file this e bay as it was a lost anyway.  Did not want to keep up with all the hassle of more paper work I made 0 off.  And e bay even as I requested would not give me a 1099. I got 0 in stupid stimulus. And am a retired veteran and do right by the government.  Taxes on my home that has been in my family for many years amount more than I could get out of it.  But I guess you love the I.R.S. 

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Since the US doesn't have a VAT or National Sales Tax, the fact that you paid tax on the item when purchased is irrelevant to the IRS and any new reporting requirements associated with income taxes.  You will need to address sales/use tax issues with your representatives in your state legislature.

Thank you for your service but as a Vietnam vet myself, I don't see the relevance with regard to paying one's income taxes.  I'm assuming that you you're not referring to not having to claim VA compensation for service connected disability, of course.

With regard to property taxes on real estate, here to I do not believe that the federal government or the IRS has anything to do with those.

[southern*sweet*tea]

First off, this is NOT an Ebay thing. It's a Federal law requiring all entities that issue 1099s to send out a 1099 for $600 and above.

Your responsibility as a seller has not changed. Not one single bit.  The ONLY thing that has changed is the reporting requirements for entities that issue 1009s. 

Reporting your earnings on income tax started with President Lincoln to help pay for the Civil War.  At that time I believe the reporting requirements started at $500 yearly income.  For at least eight decades now (that's 80 years folks)  now it has been a Federal law that ALL income, no matter the amount or where it comes from, is to be reported. Using the appropriate deductions will very often lower this amount enough that it adds no additional tax obligation.

I get it - nobody likes taxes. I don't like them, and I don't know of a single person on this board who does.  It's a matter of civic responsibility - doing the right thing as a law abiding citizen of this country.  If people don't like the laws, they need to vote for people who will change those laws.  The way to do that is to stop with the party politics and actually vote for the person, not the party, but sadly that seems like it will never happen.