mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@andshe_21 wrote:This is where you are wrong! I bought a garmet from a shop and paid taxes - used it for 2 years and selling it for a loss (pay attention to the word loss) I am not making money I am losing money - and yet it is taxable ? how about when I am returning it - perhaps it is taxable too? why dont we tax it when I wear it - or better why dont we ask people to wear a tag on their forhead showing the depreciation ? com on - every transaaction is not a taxable transaction and not a business transaction stop pushing your head down the dune !
First you need to understand the difference between Sales Tax and Federal Income taxes. Sales tax and what is taxable is driven by each individual state. So no I'm not wrong, you just misunderstand.
Now the amount you sold that item for does belong on your Federal Tax return as does the deductions for your expenses. If that nets out to a loss on the item then it has no impact on your taxes owed to the federal government, but you still need to claim it.
You are confused about Claiming income on your Federal tax return and if it increases your taxes owed. Those are not the same thing and don't always happen. Still you need to claim your income and deduct your expenses on the Schedule C of your Federal tax return.
@franciscoclouds wrote:I rather starve to death than giving my SSN to this suckers
That is simply an over reaction.
@rob-benson wrote:Not everyone on eBay "makes money". I sell old games and such that I already bought (often years ago) and paid taxes on. I don't (overall) make a profit. My sales count as an "occasional garage or yard sale". There is no reason they need my SS#. Oh, other than the fact that eBay wants to manage the payments. They should have just grandfathered the long term users and just made all new ones sign up -- or have those who sell over a certain limit. I'm not too keen on giving a company that just had a huge data breach 4 years ago access to my banking info AND social security number. I've been on eBay since 1999, but there are other places to sell online these days that don't need that info. I will still buy stuff, but I won't sell here anymore, which to be honest doesn't really matter to eBay at all. I'm not the kind of seller they are looking to attract now.
Yes but by selling stuff you have around your home you do put money in your pocket that you otherwise would not have had. So in a sense you are profiting. You got the use of the item for all the years you had it and used it and then was able to get a little money out of it at the end. I personally see that as a good thing. And lots of sellers are in that position.
If that is all you ever do, sell your own stuff that you no longer have use for or for whatever reason you have, while you may need to claim that as income on your tax reports, once you deduct your expenses, to include your original purchase price, you won't likely have any income to claim or increase your taxes. So for most in your position, it would never translate to more taxes you need to pay. But that doesn't mean you don't have to claim them. The Schedule C form is really pretty easy to get through. What is harder is tracking all your expenses and keeping receipts.
You are however incorrect that there is no reason for MP needing your MP. They still have laws and regulations to follow and the SSN is necessary for proving your identity.
Whether or not you make a profit is not a determining factor on if you have to report your sales on your federal income tax. If it was, then people could just tell IRS that they didn't make a profit and be done with it, no matter if they did or not if IRS didn't require you to PROVE IT. If you can prove it, all is good and all it will cost you is a little of your time filing out forms.
Grandfathering people in is just not an option.
You are aware, or at least I hope you are aware, that Ebay lost ZERO financial or private account information in that hack of 7 years ago. Not a crumb of info was reached by the hackers. Ebay's encryption held up to the task. That should make you have MORE faith they can protect your data instead of less.
But you need to do whatever you think is best for you. Just make sure you do your homework so you know and understand what the other sites can offer you. Good luck in whatever you decide to do.
@nobody*s_perfect wrote:My sales count as an "occasional garage or yard sale". There is no reason they need my SS#.
eBay has no way of knowing whether you're selling your own personal items, vs making a nice profit selling items that you purchased for 50 cents at a somebody else's yard sale. That's a matter between you and the IRS; eBay just processes the payments.
" just made all new ones sign up -- or have those who sell over a certain limit."
The federal threshold is $20,000 but in many states the limit is just $600. Even if a seller isn't located in one of those states, eBay can't take a chance that a seller will go over that threshold and then move to one of the states where eBay is required to provide a 1099-K to the state. PayPal and other payment processors are affected by the same laws, so you might find that all venues require your SSN now.
Just for a little clarity, if a seller doesn't qualify for a 1099K does NOT mean they don't have to claim their internet sales on their Federal and maybe state tax returns.
@nobody*s_perfect wrote:Oh, absolutely. This was about eBay's obligation to provide a 1099-K, not about the seller's obligation to report his income.
Sorry, I had just come from a conversation where some were saying if you didn't have a 1099 you didn't have to claim the income. Bad info for sure. Thank you for your clarification and I should have read more of the post surrounding your comment. 😍
@rob-benson wrote:1) Your password IS personal account information. 2) "Encryption holding up" is not a thing. Once data is taken, encrypted or not it is considered compromised. It does suck more when unencrypted data is taken, but there is no absolute knowledge that anything has "held up" once it has been taken. For the record I work as a Network Security Admin (over 10 years) and have had the sheer joy of dealing with data breaches by a couple of our venders and some of our subordinates. You can check my social profiles and confirm that pretty easily. I mention this because I don't want people mislead by sugar coating or whitewashing the the situation. To be fair it has been a bad couple of years for security in general and I think most people should be concerned about increasing their exposure at a time when the best security advice is to reduce it. eBay did not do a terrible job, but past performance is an indicator of possible future risk.
As far as I can tell eBay could continue processing through Paypal as they have for years. This new request is part of their managed payment system, and is the result of a policy decision that could be reversed -- they could just allow people to "opt in" to that managed payment system, unless I am missing something there.
Look if you want to make it a big deal, then it is a big deal to you, don't let the facts get in the way. Fact is they did get SOME encrypted passwords. They did not use any of them likely because they were never able to unencrypt them. So it didn't do them any good and they never actually got anyone's password. It scared us all. It was an important event. But unlike you that sees only the fact that they got the encrypted information, I see the other side which is that Ebay did protect us and they were not able to use anything they had so ALL members information remained safe and secure.
They didn't get other encrypted information, encrypted passwords was what they were able to get to for some accounts. So since they were never able to unencrypt the passwords they were not able to come back to Ebay and gain access to all the information on the members accounts.
A simple Google search would show you that this is accurate information.
