Reporting eBay Income For Tax Purposes

[soh.maryl]

Personally, am no longer a seller, but here's just one thought from a seller's perspective:  If every seller who claims they have plans on leaving because of their outrage about reporting eBay income does actually leave, doesn't that mean less competition for the guys who decide to stick around? 

[this*old*attic]

I suspect many of the low ballers not paying/realizing their tax obligations … are the exact same people (or overlap with the group) who: don’t know you can’t give buyers a neg, never realized s/h (and later taxes) were subject to FVF, fail to learn policy and negatively impact buyers, and indulge in a host of other generally unbusinesslike practices that harm the overall buying experience on the site.

 I’m just not sympathetic to their complaints.

[membersince1996]

I think most of those sellers aren't going to leave but will sell $500ish on ebay (just enough not to get it reported). If there are a lot of people that actually don't sell, this will probably hurt ebay's profits a little which means they will probably raise selling rates for the people that are still selling here (or add extra charges to things).

[forward-motion]

Hopefully! And I will be sticking around! 

[fredgsanford712]

You really need to learn what you're talking about before you start typing.  You sound inane.

The new law is any total sales over $600.]

Instead of going after huge corps that hide their assets so they don't have to pay tens of thousands in taxes, they go after the little person who's reselling items they already paid taxes on when they bought the item new.

The new law is making a hardship on the low-income while letting the privileged get away with the same thing.

[dhbookds]

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@fredgsanford712 wrote:

You really need to learn what you're talking about before you start typing.  You sound inane.

The new law is any total sales over $600.]

Instead of going after huge corps that hide their assets so they don't have to pay tens of thousands in taxes, they go after the little person who's reselling items they already paid taxes on when they bought the item new.

The new law is making a hardship on the low-income while letting the privileged get away with the same thing.

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To me.........that's the same old saw of I shouldn't get the speeding ticket because others who are speeding didn't. 

[fredgsanford712]

Boy, you all really have NO IDEA what you're talking about. You sound so inane.

Unless someone's getting paid in check, cash or money order (or bank transfer, if one can do that for small-scale transactions), they are going to be 1099'd for any total incomes of $600 on any 3rd-party payment option.

If one buys something online, they typically use Venmo, Google Pay or other online payment option.  The likelihood of a CL seller actually making $600 in sales via check or cash is nonexistent.  I know. I sell on there also.  Even on CL, people want to pay via the 3rd-party payment options.

This includes Venmo, PayPal, and pretty much all online transaction services.

You know how LITTLE $600 is?  That's typically not even one month's rent payment on an apartment?!?!!

This is truly hurting the little gal, while continuing the mega-corps hide their assets so they don't have to pay tens of thousands of dollars in taxes.

I'm a reseller.  I already paid taxes on my items when I bought them. Now I'm going to have to pay taxes on them when I resell them.  It wasn't  an issue when the threshold was $20,00 ~as I NEVER sold near that much any year since I've been a reseller.

But now they want charge taxes (and the hassle of filing them) for such a low amount of $$$ when the Ritchie Mcwhite's of this world are making billions without paying their fair share?  I call foul on that nonsense.

I'm going to leave my items here on because I took so long setting up the listings. But I'm not going to be adding more items.

My partner & I share an account. It's in his name.  He doesn't want to have to deal with the 1099 nonsense, being he makes very good money at his real job.

My partner doesn't even buy off eBay anymore.  He uses Amazon for all his purchases.  The only reason this account is active is because I use it for reselling.

All the sales on this account have been made by me.  I don't use Amazon to purchase . . . . ever.

I frequent only the sales sites I utilize myself.  SO when I finally decide to take my remaining items off eBay, I probably won't be buying on here as much.

I used to be homeless. I know how cruddy laws like these keep the impoverished 'in their place'.

This is the home of the Caucasian and land of the wealthy.  There's no equality here.  The gov passes laws to make sure to keep this status quo.

[Mike drop]

Additional options

[dhbookds]

I'm a reseller. I already paid taxes on my items when I bought them. Now I'm going to have to pay taxes on them when I resell them.

Surely you understand you paid SALES TAX on items, and the subject concerns INCOME TAX........and if you didn't make profit reselling items, you don't pay INCOME TAX on the sale.    If you work a job, you get a W2.......which shows what you earned.......and can take the allowable deductions on that........what is the difference?

[rapidreplay]

Most everything I made on eBay goes right back into buying on eBay. I call it a trading platform 

the Sellers are buyers.  So it may be a negative effect. sometimes I buy for market research on how others pack things.  I'm also a collector. That is what started eBay 

[skeletonstore]

Not necessarily because this site is currently being run by amazon dropshippers who will fill the void,  quickly.  The site is teaming with amazon sellers.  Ebay knows this.  Their entire business would collapse overnight and I'm talking their stock go to pennies a share if amazon pulled the plug on them.  Ebay has turned a blind eye to the deceptive selling practices they use.  They use fake tracking generated by a program that is designed to generate fake tracking when ebay rules say you can only use certain shippers.  They lie about location and availability. However like i said it is ebay's current and only business model.  Ebay caused this problem by fighting government to keep these con artists protected by not allowing government to force sellers to show their address.  At the same time ebay did nothing to protect sellers from the new tax the poor program. It might be a new opportunity for another site mirroring what ebay used to be.  The people leaving aren't the chinese dropshippers though and other cons.  It used to be what made ebay great was they helped sellers bring buyers to their listings they no longer do that and that's pretty much how other sites run so you might as well sign up for a godaddy or shopify store and find your own customers.  You're still going to get a 1099 unless you accept cash only and then you might get audited.  

[wildpitchsports]

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@chapeau-noir wrote:

@wildpitchsports  The etailing environment is still evolving quickly, and acquisitions like that will definitely impact.

I sell pre-owned clothing and several high-end, reliable brands sank out of sight when the designers retired and quit producing them.  A couple of other brands shipwrecked when Walmart bought them and they lost their value due to the association. Stuff like this is always happening and one has to keep hustling along to keep up because of the outsized impact on sellers in the secondary market.

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Oh okay I know what you're referring to. Those people have loyal customers that shop those brands!

Yeah the market I am in is going through rapid transformation as well, it's been pretty much the same for many,many years and with this new high bankroll manufacturer in the game - literally effective today - it will change how the market operates as a whole. Think I'll just take a step back. Baseball is on lockout anyway lol

[katzrul15]

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@yuzuha wrote:

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@katzrul15 wrote:

@yuzuha 

If you click on "edit", you can view your full info on file .

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Aha, thank you!  Yeah, my full SSN is there. I'm wondering how other people got around giving that because I distinctly remember that it wouldn't let me sign up for MP until I did.

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Agreed.  My memory as well.  Confusing how some are under the radar.

[chapeau-noir]

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@wildpitchsports wrote:

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@chapeau-noir wrote:

@wildpitchsports  The etailing environment is still evolving quickly, and acquisitions like that will definitely impact.

I sell pre-owned clothing and several high-end, reliable brands sank out of sight when the designers retired and quit producing them.  A couple of other brands shipwrecked when Walmart bought them and they lost their value due to the association. Stuff like this is always happening and one has to keep hustling along to keep up because of the outsized impact on sellers in the secondary market.

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Oh okay I know what you're referring to. Those people have loyal customers that shop those brands!

Yeah the market I am in is going through rapid transformation as well, it's been pretty much the same for many,many years and with this new high bankroll manufacturer in the game - literally effective today - it will change how the market operates as a whole. Think I'll just take a step back. Baseball is on lockout anyway lol

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It's just the impact acquisitions and brand changes have in general - we have similar experiences.

[mam98031]

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@soh.maryl wrote:

Personally, am no longer a seller, but here's just one thought from a seller's perspective:  If every seller who claims they have plans on leaving because of their outrage about reporting eBay income does actually leave, doesn't that mean less competition for the guys who decide to stick around? 

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Without reading this entire thread, what I find amazing is how many believe that this is all Ebay's fault or is a requirement specific to Ebay, which I know you know is completely incorrect as it applies to every Marketplace that processes the money and every money processor.

[chapeau-noir]

Life in a bubble, I guess.

BTW, I don't read the crying and complaints nor attempts to use this issue for political grandstanding on forums for younger sites - just questions and requests for some guidance.  Is eBay turning into some kind of backwater?  (I know that like 1% of anybody comes to these forums so I probably have a skewed view).

[yuzuha]

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@katzrul15 wrote:

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Agreed.  My memory as well.  Confusing how some are under the radar.

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As I recall, it wouldn't even let me add a bank account until I had given them my SSN. That came before anything else that I did regarding MP.