Social security number wanted.

[rc66gto]

I have been a Ebay member buyer/seller since 1999 untill recently my account was frozen because I refuse to give up my SSN. No one should have to give up there SSN.the reason is that you will be reported to the IRS so that you will have to pay more taxes because its earn income.most of us who rely on making a few dollars are tax those of us who are retire and living on fix social security income depend on flea markets and garage sales for extra cash it's going to get to a point if you stop to use a restroom you will be tax it's out of control . I will close my account with Ebay and sell where I'm not under pressure to keep them happy the more you sale on Ebay the better they look there employees get pay and there stocks go up.

[cdwm]

I will NEVER give out my SSN. Identity  theft once..but not again.  Hello Goodwill!

[ers_usa]

I still don't get it, If I buy a car for $20k, I'll pay the car price plus taxes. If I sell that car 10 years later for $2000 to a buyer on craigslist, I don't pay any taxes on that, has anyone? Is the buyer supposed to give me a 1099K? I don't get it. 

I don't remember giving my ss# to paypal, but I just checked and it's there. There's also a 1099K now. I've been selling on ebay and using paypal for accepting payments for years but never even checked for a 1099k on PP and PP never sent me one. I only sell maybe $2k a year and last year I sold $1500. Am I supposed to include that on my 1040?

[nobody*s_perfect]

Yes, you are supposed to report your eBay income on your 1040. Most sellers would use Schedule C. If you are truly selling at a loss, then the Schedule C will show no net income (after you deduct allowable expenses) and you won't owe any income tax on it.

Your transaction with that car buyer does not fall within the requirements for 1099-K transactions.  Neither of you is a "marketplace facilitator" processing online payments. But (in my state at least) the buyer will be expected to pay sales tax on that $2000 purchase in order to register the car.

[ers_usa]

looks like I found it, Illinois just implemented it in 2020

https://sovos.com/blog/2019/12/10/illinois-enacts-form-1099-k-reporting-requirements/

[coastaltechsolution]

YES

You are supposed to report any income on your federal tax returns 

Does not matter if you do or do not get a 1099-K

To the IRS it is your responsibility to report income 

[ironmand5018ak]

I'm also done after being a member since almost the beginning. I just sell random things from time to time, not a business. I guess I'll try Facebook marketplace or something. I think ebay will lose a lot of users with this move. I can understand if the IRS is forcing this on them, but not using PayPal after 2023 is the nail in the coffin for me.

[mam98031]

---

@ironmand5018ak wrote:

I'm also done after being a member since almost the beginning. I just sell random things from time to time, not a business. I guess I'll try Facebook marketplace or something. I think ebay will lose a lot of users with this move. I can understand if the IRS is forcing this on them, but not using PayPal after 2023 is the nail in the coffin for me.

---

@ironmand5018ak 

I think you have a misunderstanding.  Just because the current contract with PP ends in 2023 doesn't mean their won't me a new contract as that time approaches for a few more years.  Heck that is the way it has always been done.  Don't listen to the gossip and assumptions of others.  Buyers like to use PP and therefore PP is highly likely here to stay unless buyers change and no longer want them.  Contracts renew as ending dates approach.  That is true in all kinds of businesses.

You are a business.  Every single transaction you have on Ebay is a business transaction.  There are no personal transactions on Ebay and there never has been.  To be a business doesn't mean you have to be a corporation or something.

[no_zero369]

I think another key point is that IF you can legitimately show a LOSS on your Scheduled C, then that loss lowers your Adjusted Gross Income and therefore lowers the tax you pay over all!  So why wouldn't you keep careful records?

Yeah, I know, show too much loss or consistent losses over the years and one might trigger an IRS issue, something about "hobby selling" as not a legit Schedule C.

And I won't even go into the concept of "loss carry forward" which could be of use in reducing taxes over all.

But hey some people pay taxes, the smart people only pay the taxes they owe!

[merk89]

I get the tax liability stuff but I cannot in good faith trust eBay with my SS number. So in my case I am simply done selling here. I will still buy but I am a small time seller. Just a few things occasionally to either get some real dollars or avoid having to land fill it. It was fun while it lasted.

[mam98031]

---

@merk89 wrote:

I get the tax liability stuff but I cannot in good faith trust eBay with my SS number. So in my case I am simply done selling here. I will still buy but I am a small time seller. Just a few things occasionally to either get some real dollars or avoid having to land fill it. It was fun while it lasted.

---

@merk89 

May I ask why?  Ebay is 25+ years old and has never lost personal or financial data for the site.  Ebay has had this data for years from sellers.  From birthdates to credit card numbers and bank accounts.  Sellers can set up auto payments on their Seller Invoices and they can have a back up funding source.  So info has been there for many years on many sellers.

If you don't want to move into MP, you don't need a reason beyond you simply don't want to do it.  But if that is the direction you are going my best advice to you is to know the actual facts about the program so that you can make an informed business decision instead of one based on assumptions and / or incorrect info.

I wish you the best in whatever you decide to do.

[tahiti81]

Here is the deal.  First, how can they tax you based on your sales?  For one it is considered "gross" sales, not net income.   For example if you bought a shirt for $20 and sold it on Ebay for $25 why do you have to pay income taxes on $25:  you only made $5 off the sale.  Are we now supposed to keep receipts of what we paid for these items like we are a business?   What if you are selling a vintage kitchen table and chairs that you recall buying in 1980 for $2,500 but you don't have the receipt any more?  And you sold the item for $1,000.   Do you have to pay income taxes on the $1,000 sale on that when in a sense you "lost" money selling it?   And since you technically lost $1,500 can you offset that "loss" against "gains" from other sales???  If Ebay has to report this to the IRS  (if not now you know it'll eventually happen)  it will be an accounting nightmare.

[coastaltechsolution]

eBay reports what you earned, how are they supposed to know what you paid for an item?

YES it is up to you the individual selling the items to maintain records 

Why would you think otherwise? 

If eBay sends you a 1099 saying 25k in sales then it is up to YOU the seller to report on your taxes your actual numbers 

[mam98031]

@tahiti81 

Here is the deal.  First, how can they tax you based on your sales? 

Ebay doesn't.  Ebay has nothing to do with how you file your federal income taxes, they just supply the information to sellers as required by Law for those in MP.

For one it is considered "gross" sales, not net income.   

It is neither on a 1099K.  It is Gross Receipts.  So that is the number BEFORE cancellations, refunds, etc.

For example if you bought a shirt for $20 and sold it on Ebay for $25 why do you have to pay income taxes on $25:  you only made $5 off the sale. 

For the answer to that, you need to talk with IRS, not Ebay.  

Are we now supposed to keep receipts of what we paid for these items like we are a business?   

YEP.  As you should have been doing all along.  Every single transaction on Ebay is a business transaction.  There are NO personal transactions on Ebay and never have been.  While you may not consider yourself a "business", that doesn't mean you aren't functioning as one.  And IRS no longer has a minimum about you can earn before claiming your income on your Federal Tax returns and haven't for years.  So if in past years you haven't been claiming your sales from Ebay or any other internet site, you may have a problem as you are likely required to.

What if you are selling a vintage kitchen table and chairs that you recall buying in 1980 for $2,500 but you don't have the receipt any more?  And you sold the item for $1,000.   Do you have to pay income taxes on the $1,000 sale on that when in a sense you "lost" money selling it?   And since you technically lost $1,500 can you offset that "loss" against "gains" from other sales??? 

Go do some Google searches for this kind of stuff.  IRS does provide for how this is to be handled, you just need to go and discover how it is they want you to take care of it.  Few things are worth what you may have paid for something or more after you use it for a few years.  There are depreciated values.  Of course there are collectibles that increase over the years, but I encourage you to do your research and find what is acceptable to IRS for accounting for this.

If Ebay has to report this to the IRS  (if not now you know it'll eventually happen)  it will be an accounting nightmare.

Not really.  It is accounting you should have always been doing and has been required by IRS for a long time.

https://www.irs.gov/pub/irs-prior/p525--2019.pdf

Sale of personal items. If you sold an item
you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. Report it as explained in the Instructions for
Schedule D (Form 1040 or 1040-SR). You can't
deduct a loss.
However, if you sold an item you held for investment, such as gold or silver bullion, coins,
or gems, any gain is taxable as a capital gain
and any loss is deductible as a capital loss.
Example 39. You sold a painting on an online auction website for $100. You bought the
painting for $20 at a garage sale years ago. Report your $80 gain as a capital gain as explained in the Instructions for Schedule D (Form
1040 or 1040-SR).

[rogue74]

I noticed today that my account is now blocked from new listings, yet my Dad's account, who has sold a LOT more, including collector cars is not, and he's a power seller. He does not have his bank account linked. Seems like they might be giving leeway to people making them a lot of money while going after small time users. It would seem they would be more concerned with the people making a lot of money on here.

[slippinjimmy]

---

@rogue74 wrote:

I noticed today that my account is now blocked from new listings, yet my Dad's account, who has sold a LOT more, including collector cars is not, and he's a power seller. He does not have his bank account linked. Seems like they might be giving leeway to people making them a lot of money while going after small time users. It would seem they would be more concerned with the people making a lot of money on here.

---

You dad's account, has it been moved to Managed Payments or he still using PayPal?

Sellers are being included in Managed Payments on a somewhat random basis and spread out over months and months. I have two active selling id's one is in MP the other is not, luck (or bad luck) of the draw.