eBay

trading-post-619 · ‎03-12-2021

So, this seems to be going around now that the new stimulus bill was signed. on it, ot states, if you make 600.00 you will now get a 1099 not the 20k + 200 trans.

anyone else hear about this?

azh-71 · ‎06-13-2021

@duffy4444 wrote:
OOOOOH, I can't wait until next January and February to hear the squealing on this and other Ebay forums about all the under-$20,000 sellers who got away with avoiding (evading??) reporting income for the last 25 years.

Let me put things in perspective here. Last year my gross receipt were a hair shy of $50k. After taking all the deductions the net was around $6k. This makes me think that $20k limit was very reasonable, and the government may have been saving money with it. Sure, there will be money made by the IRS next year, because so few people know about it and a ton of them will be caught unawares, but having paid once everyone will learn their lesson right quick.

There's another issue. Do you remember the recent outcry when it turned out that $600 a week are taxable. Now imagine the same story in an election year and the justified shrieking that the Democrats are squeezing the last penny out of the regular folks while tax the rich proposal have gone nowhere. It ain't gonna be pretty.

vwbus78 · ‎06-13-2021

Exactly........Just because I sell $500 a month doesn't mean I MAKE $500 a month. Guess I will get to deduct all those expenses now. And since Uncle Sam wants to stick his nose into my hobby income, I will get more back at the end of the year.

dbfolks166mt · ‎06-13-2021

One of the nice things about MP is the new reports that are available under that format. I can easily generate a detailed report that shows sales, fees, currency exchange charges, shipping.................. for the entire year. The only things I have to add in as you said are the COGS, mileage, shipping materials/packing supplies and other operating expenses like computer software and area of the house used to support operate the selling/shipping.

stamplotsforyou · ‎06-13-2021

some of the snide comments on here are interesting... because I am sure everyone on here who uses Facebook Marketplace or sells items at a garage sale rushes to accurately report every dime they make.... Of course you...DON'T.... and if you say you do, you are lying.

With that said, yes these are the new rules for online sales. For those of us who have been meeting the threshold for years it's business as usual but it certainly will cause others to either get off online sites or start accurately accounting for expenses to offset their sales so the taxes do not kill them.

sylvercoins · ‎08-10-2021

I buy stuff to flip.

Buy on eBay for $100

Add $7 shipping

Plus 6% tax = $113 total costs

Sell on eBay for $150

EBay fees 13%

= $17 profit

Subtract 33% government tax

= $11.39 left for me!

Sorry but I'm out!!!

Not worth it anymore

sylvercoins · ‎08-10-2021

EBay will lose millions of sellers next year

You own eBay stock

Sell it now!

dbfolks166mt · ‎08-10-2021

There is a whole set of government defined parameters on what puts you in the hobby category and what puts you in the business category from a tax perspective. Business losses are deductible but hobby losses are not.

mudshark61369 · ‎08-10-2021

@dbfolks166mt,

"There is a whole set of government defined parameters on what puts you in the hobby category and what puts you in the business category from a tax perspective. Business losses are deductible but hobby losses are not".

Not to take your last reply too lightly, but I have to quote Lili VonSchtupp's line from Blazing Saddles.

"It's twooo, It's twooo..."

Not only will hobby sellers not be able to deduct losses, but sales may be taxed as capitol gains. Most think capitol gains are charged only on investments and properties. However, any item that has increased in value over time can be taxed as capitol gains. Which means if audited, a seller listing items in categories such as Antiques and Collectibles could end up with a higher tax bill. I pity some of the sports card sellers.

What's worse is that the IRS info on the 1099K form still has the $20K - 200 online sales threshold, but there is a "special circumstances" $600 reason for receiving a 1099K, which even my tax guy is having trouble figuring out. I suggested that he check to see if the transfers from foreign accounts could be one of the special circumstances for a 1099K form being issued at $600. No answer about that yet.

"THERE IS NO SUCH THING AS FOOLPROOF, BECAUSE FOOLS ARE SO DARNED INGENIOUS!" (unknown)

katzrul15 · ‎08-10-2021

@mudshark61369 wrote:
@dbfolks166mt,

"There is a whole set of government defined parameters on what puts you in the hobby category and what puts you in the business category from a tax perspective. Business losses are deductible but hobby losses are not".

Not to take your last reply too lightly, but I have to quote Lili VonSchtupp's line from Blazing Saddles.
"It's twooo, It's twooo..."

Not only will hobby sellers not be able to deduct losses, but sales may be taxed as capitol gains. Most think capitol gains are charged only on investments and properties. However, any item that has increased in value over time can be taxed as capitol gains. Which means if audited, a seller listing items in categories such as Antiques and Collectibles could end up with a higher tax bill. I pity some of the sports card sellers.

What's worse is that the IRS info on the 1099K form still has the $20K - 200 online sales threshold, but there is a "special circumstances" $600 reason for receiving a 1099K, which even my tax guy is having trouble figuring out. I suggested that he check to see if the transfers from foreign accounts could be one of the special circumstances for a 1099K form being issued at $600. No answer about that yet.

Will ask our CPA about the $600 box. Has not came up in discussions.

We had a paper audit in '09 for tax year 2008. 6 months later, the IRS owed us around $130. We have always filed Schedule C and itemized, etc. Paper audit was intense. CPA did a great job for us.

2009 we switched everything to quick books and we pay IRS/State quarterly to avoid owing anything (or very little) at tax time.

Little painful at first, but well worth it to stay abreast of what you owe. CPA devised a tax burden rate for us per item sold.

And you potentially "owe" the federal and state tax whether you report your earnings or not. Just kidding yourself if you think the rules do not apply to you.

(On our paper audit, they went back 2 years...they can go back farther should they choose to do so).

....... "The Ranger isn't gonna like it Yogi"......... Boo-Boo knew what he was talking about!

Posting ID Only.......
Yes, I have no Bananas, only Flamethrowers.......

wrong66 · ‎08-10-2021

Nonsense.

sextons-sweet-deals · ‎08-10-2021

correct! The state of Illinois and I believe one or two other states where already requiring this pre 2020 elections.

nobody*s_perfect · ‎08-10-2021

Vermont, Massachusetts, Virginia, and Maryland already have thresholds of $600, and Illinois is $1000.

releasethekraken_1 · ‎08-10-2021

@sylvercoins wrote:
I buy stuff to flip.
Buy on eBay for $100
Add $7 shipping
Plus 6% tax = $113 total costs
Sell on eBay for $150
EBay fees 13%
= $17 profit
Subtract 33% government tax
= $11.39 left for me!
Sorry but I'm out!!!
Not worth it anymore

Since you were supposed to be paying income tax on that profit already, why were you ever in?

7606dennis · ‎08-10-2021

@sylvercoins wrote:
I buy stuff to flip.
Buy on eBay for $100
Add $7 shipping
Plus 6% tax = $113 total costs
Sell on eBay for $150
EBay fees 13%
= $17 profit
Subtract 33% government tax
= $11.39 left for me!
Sorry but I'm out!!!
Not worth it anymore

If your selling $500 a month that means your hobby income $6k which you were suppose to be reporting as income all along. Your expense deductions should reflect the difference between gross income and net.

"It is an intelligent man that is aware of his own ignorance."