mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@bigandy! wrote:
@streggiari wrote:Everyone here seems to be missing the point. It's not that it's eBay's fault, nor that people shouldn't pay taxes. It is that the government should not be taxing you on these sales unless you're a business anyway. The tax basis for this is making a profit. Most occasional sellers on eBay sell things at a significant loss. But if you now have to start reporting the sales as income, you have to have some record to show your profit basis (original receipts). For a business, this would be expected and one probably wouldn't be selling an old baseball glove your father gave you and you have no receipt. Most of you are probably too young to remember selling things in the classified section of the newspaper, but no one taxed those sales. In fact, the eBay is a victim here. The government is wasting taxpayer money by funding employees and programs to track and audit on something that should never be taxed in the first place. The $12K limit is **bleep** If you sell $12K worth of stuff at a loss, it's still a loss and not taxable. What law says that at $12K you're now a business and should have to prove your original cost basis with a receipt?
Feeling sorry for ebay?? Are you freakin serious?? There should be a way for people like you to give them more money than is required.. would that make you less "sorry" for them?? So a "once in a month" seller has to pay taxes on a $10 garage item???, Some little girl has to pay taxes on a sold $3 rubber ducky?? " NO RESISTO " as Julius Cæsar said so long ago.. Is that how you are going to cave to this?? Come at me chump.. I'm waiting....
You are blaming Ebay for something they have NOTHING to do with other than they are FOLLOWING the State LAWS they are REQUIRED to follow. Ebay didn't create these taxes nor did they support internet sales taxes. Ebay fought for YEARS against internet sales taxes. And they likely are responsible for the delay in them taking place. Unfortunately in the end we lost. SCOTUS decided in 2018 that states could charge sales taxes on internet sales.
So if you actually want to fight having to pay sales tax on internet sales, stop blaming Ebay and put your efforts into addressing the matter with your own State. It is the STATES that have to change the law they passed called MFLs [Marketplace Facilitator Law]. Ebay has zero power to do that.
@bigandy! wrote:Oh, so you enjoy tyranny do you? Just wait until the REAL soviet style regime comes in... then you will wish you weren't so snarky on that last reply....
I never said any such thing. Now if you would like to have a CIVIL conversation about something, I'm happy to do that. But if your only desire is to insult or make snarky remarks, there is no point.
@bigandy! wrote:
@pjsalerno wrote:So let me get this straight. We already paid income tax on the funds we originally used to buy a new item. We also paid state and local sales tax on that item. Months or years later when we sell the same item for much less than we originally paid, those funds are taxed as income? "Posts by people who are trying to avoid paying their share aren't really all that popular." We have already paid our share, wake up.
DUDE, the billionaires, TRILLIONAIRES (whatever!!) need a gold ashtray for their Bentleys... and they want US to pay for it!!!!!!!!
Statements that have no basis in truth aren't helpful. @pjsalerno simply has a misunderstanding of the IRS rules for selling our items from around our home. Snappy remarks are not going to assist them or you in learning the actual facts of how this works.
https://www.irs.gov/newsroom/five-things-to-remember-about-hobby-income-and-expenses
@bigandy! wrote:
@andshe_21 wrote:I think the whole thing is a sham - rich people pay no taxes - middle class pay double on selling a used item which they have already paid taxes on. IRS cant collect taxes from big corporate America and china ? so lets milek already struggling old, poor and miserables? it is a misery distribution for all - welcome to the new America
jeff " bozos " and elon " Lone Scum " musk strut around and brag on how they made $13 Billion in one afternoon on some day during 2020.... and we get crucified for selling a $10 garage item or a $3 rubber ducky.... sad eh?
P.S.- The Founding Fathers warned us about this. It's called tax tyranny.
You simply misunderstand the rules for when to claim your income and when you don't have to. You are making assumptions instead of seeking out the facts. I provided a link for you in an earlier post.
@bigandy! wrote:
@vineyardedge wrote:We gave it to PayPal way before giant company hacks were a thing. Ebay can be hacked for our info too leaving us subject to identify theft.
It depends on how bad the hackers want to get in. I've been hearing that PP was WAY better at protecting info than evilbay. That's just the talk, I don't know for absolutely sure. I'm with you, that we should be at the very least a little skiddish on giving them a number as powerful as our #SSN. Well, evilbay wants to run the whole show, and they're going to go hell or high water to do it. Unfortunately, security breaches happen all the time, and sadly have to "hope" we don't get hit by one.......
You are likely aware that Ebay use to own PP until 2015. Ebay and PP share much the same security system. Ebay is no more at risk for hackers that every single other internet site. It is a concern for ALL of them always.
Also Ebay is NOT the first of the larger sites to require their own payment program to be used, in fact they are the LAST of the bigger sites to require this.
@pjsalerno wrote:Who said anything about hobby for profit income? @mam98031 simply has no understanding why selling old stuff for a loss that is lying around our homes should be taxed twice. Get a life, Snappy
Hobby is simply what IRS calls it. It doesn't mean it is a literal hobby as we most would think it to mean.
You might have seen where people will say they don't consider themselves a Business on the threads. It is likely that how those poster define a business is quite different that how the IRS sees it.
The link I gave you will help you to determine if the sales you do on the internet are taxable or not taxable as far as claiming as income.
Do you always bite the hand that is trying to help you? It is highly likely that what you sell is NOT taxable, nor does the IRS expect you to report it as income. The link I gave you earlier will supply you with that information. But it is fine if you prefer to assume rather than learn. That is on you, I simply provided you with the information that would help.
Here is a little more information for those that may like to have it.
https://www.antiquetrader.com/collecting-101/behind-gavel-hobby-become-business
https://www.1040.com/blog/2019/7/12/selling-stuff-online-taxes-for-etsy-ebay-letgo-and-more/
@varebelrose wrote:"If you had a PayPal account - yes you did give them your Social Security Number otherwise no PP account."
People keep spreading this misconception. Not everyone was required to provide a SSN to Paypal, just as not everyone had to have their PP account linked to a bank account. Neither is true.
I think it comes from back in 2011/2012 when PP had to collect many sellers SSN due to IRS creating the requirements for the 1099K form. It affected a lot of sellers that used PP and I think that there are some assumptions being made that PP required the SSN from everyone, but they didn't for their smaller customers.
However this will change for everyone whether they are using PP or some other money processor in 2022 when the threshold for 1099Ks gets dropped down to $600 per year. Unless the Congress is successful in appealing this recently passed bill.
@chris90242 wrote:And the truth is the IRS did not push for this new measure. It was sneaked into the last Covid relief bill by a few democrats. That's all it was. And mostly aimed at Driver App incomes. That business boomed over the last few years.
They did not "sneak" it in. It was simply part of the bill. A way to allow the Federal Goverment to earn a little more money to help pay back the enormous deficit caused by the Stimulus checks.
The thing to remember is NO ONE should be fearing the lowering of the 1099K. At least no one that has been reporting their income like they are required to anyway. The ONLY people this will have any negative effect on will be those that were trying to keep their online income from IRS finding out about it.
For those that have been reporting there income as required by Federal Law they have nothing at all to fear. It is just business as usual.
Driver Apps or online selling, we all are required to report our actual income to the IRS. I personally take no issue with lowering the threshold on a 1099k. It won't affect me at all. Since I started my online business many years ago, I have always claimed my income.
FYI, this clause was in the Stimulus bill when Trump was the president too. It was just removed before the bill was passed.
