Taxes in 2022

[sylvercoins]

Ebay will be issuing a 1099 for sellers to report any income over $600 and 1 sale! Starting Jan 1st 2022.

Currently it's 20k and 200 sales. Ebay should have sent every seller of this new tax law but they haven't! If you don't read it in the news your toast! I'm lucky enough to have read it and since closed my ebay store and selling all my coins at my local auctioneer with no tax to report. I'm all done selling on eBay it's becoming a very un lucrative site.

[tdrake]

---

@robparz59 wrote:

This is insanity just because something is a ow doesn’t make it right.. sir didn’t you know you can’t chain your alligator to the light pole..it’s a law it’s just sad how pathetic it is squeezing the small little 600$annually users t

what about the fees? What about the taxes we paid for these goods in the first place? Seems perfectly accurate how we pay a sales tax on an item then sell the same item (say repost something) you will never be able to survive the margins are already so small I sell dolls on mecari and say I get one for around 60+tax fees shipping ect..  and I sell it for let’s say DOUBLE( 120) after everything said and done I might make 10 dollars.. it just hurts my heart I literally everything into my collection/investment but now after all these micro fees/ new old taxes no one enforced are around I’ll surely lose everything I’ve worked so hard for but hey what’s it to me ?

---

There is nothing different happening in 2022 for YOU that wasn't happening in 2021. Your obligations will remain the same. The only ones affected by this change is ebay and other companies. THEY will now have to do more work and send out 1099's to more people. But you, as a seller, will see no difference in your obligations to report income.

As for sales taxes on sales taxes, if I read you post right, that all should be sorted out when you do your tax return.  

[downunder-61]

This starting to get very old.....

[lahoree]

How does this affect those who are selling unused items around the house? I mean it's not income when you paid let's say $100 for something and then sell it for $60? So that $60 is considered income? I mean I have a lot of blu-rays to sell, old games, random items I collected but have to part with. Transformers that have gone up in value, how does this work? I bought the transformers when I was in Japan and no longer have the receipts for them but I wanted to sell them as they're up in value. Do I pay tax on that sale? That would wipe out the entire gain I would make in the first place on these items. What is the point of collecting something that goes up in value only to pay taxes on them now. 

[stuff4divas]

---

@lahoree wrote:

How does this affect those who are selling unused items around the house? I mean it's not income when you paid let's say $100 for something and then sell it for $60? So that $60 is considered income? I mean I have a lot of blu-rays to sell, old games, random items I collected but have to part with. Transformers that have gone up in value, how does this work? I bought the transformers when I was in Japan and no longer have the receipts for them but I wanted to sell them as they're up in value. Do I pay tax on that sale? That would wipe out the entire gain I would make in the first place on these items. What is the point of collecting something that goes up in value only to pay taxes on them now. 

---

That's what 'write offs' are for.

And all you have to do is research what something sold for or was worth 'whenever' you bought it and compare to what you sold it for. If you can't find it, do an estimate.

As far as selling 'old' items, if you used them, you already got the value out and any monetary gain after that would have to be weighed against the original cost minus the use plus the money gained.

As long as you are showing an effort to work with IRS rules, they aren't going to audit you for pennies. IMO

[pauls_pasttime]

I believe we need tax reform. Hiring 87,000 more IRS agents to make sure “everyone is paying their fair share” (which is the redundant theme here)  and to go after people who haven’t paid taxes on sales of $600 to $20,000 is turning a blind eye to the wealthy among us again who have the means and political influence to avoid taxes. 

ProPublica recently  disclosed that Time Magazine’s Man of the Year Elon Musk paid ZERO income tax in a recent year. Financier billionaire George Soros paid ZERO federal income tax three years running.  Amazon’s Jeff Bezo paid so little income tax one year that he qualified for a child tax credit.

Yet here we are arguing amongst ourselves. The wealthy can sit back amused at how we are eating our own.

[fern*wood]

About three years ago the rich were even given more tax breaks.

[stephenmorgan]

---

@lahoree wrote:

How does this affect those who are selling unused items around the house? I mean it's not income Do I pay tax on that sale? That would wipe out the entire gain I would make in the first place on these items. What is the point of collecting something that goes up in value only to pay taxes on them now. 

---

How do you wipe out the entire gain by paying taxes?

There are many factors to be consider when calculating taxes due, but here is just a very basic example.

I you purchased your collectable for $10 and sold it for $100 you have a Capital Gain of $90.  The $90 is all that may be subject to tax.  Collectables are taxed up to 28%.  If you had to pay the highest rate of 28% on the $90 that tax would be $25.20.  So from the $100 sale you still have $74.80 remaining.  Not bad for something that cost $10.  

If you are dependent on Government Benefits that are based on your income then that $100 sale could disqualify you from future benefits.

[keynesguy]

Do you really think that the "hobby farm" presumption applies to ebay sales? Seems a stretch to call selling household bric-a-brac a "hobby." More like a chore.

[keynesguy]

No, your have a $50 loss, which is not taxed, but which you cannot deduct.

[dimraeey]

Well the way I see it, if you're worrying about you paying taxes as competition, you are the stupidest person on the planet. So Verizon, Amazon, and all the big corporations who don't pay taxes are NOT a problem, but you're worried about someone who might make a little extra money in a pandemic to try to get ahead shows you're just mad. I can care less whether the average person pays taxes or not because they are an individual. That's not my business that's the IRS and States' business. Those that do this as their sole source of income well good for you. For the person who just wants to get rid of something because it's valuable, well I find our government to be very egregious with it. If our government is going to bend us over backwards and continue to let large corporations off the hook, well we're the idiots pointing are finger at each other, which is what they want. This means the taxes that should have been collected form them, are now being pushed on us who are treading water. Also the companies like eBay and Paypal lose money as less people are going to want to sell. So who is winning, no one. We might as well just fork over our paychecks entirely to get nothing in return. 

[stuff4divas]

---

@dimraeey wrote:

... So Verizon, Amazon, and all the big corporations who don't pay taxes are NOT a problem, but you're worried about someone who might make a little extra money in a pandemic to try to get ahead shows you're just mad. I can care less whether the average person pays taxes or not because they are an individual. ...

---

You mean like Musk? LOL

Musk will most likely face a tax bill of up to $10 billion for Tesla stock options that expire in the summer of next year, according to Insider, and so far the billionaire has exercised about 15 million of the 22.9 million Tesla stock options he was given in 2012 but still has 7.9 million options left to sell. 

A 2018 ProPublica investigation revealed that Musk paid nothing in federal income taxes that year, according to Fortune, and paid less than $70,000 in taxes in 2017 and 2015. 

Musk is currently the richest person on the planet with a net worth of $255 billion, according to the Bloomberg Billionaires Index.

[wildpitchsports]

Yeah the government wants tax revenue for everything so they can keep giving unnecessary stimulus out to people with kids to buy future votes. Garage sales if you use an online form of payment and it is over $600 yup. Anything & everything. 

And also if you believe the "Chatty Cathy's" here -  and since the apparently IRS has all this time and money to blow - they will hunt you down like an animal and throw you in jail for not claiming income on your 10 cent lemonade stand you had when you were 4 and call you a tax evader.

Some people just enjoy watching others suffer. 

The actual facts are on the IRS website and ebay's own post about the matter.

[e2bay_ca]

Can you share the exact link for all the losers including myself that really want to see the site but .. can’t bring themselves to focus on something this depressing long enough to stick to the plan & figure out how to get to exactly the page you’re talking about? I’d appreciate it. By the way, I share the same views as you & I am disgusted by how oblivious so many people are to the true nature of what’s going on here.  
($600 is not an amount you place a reporting threshold at if you’re trying to catch the wealthy in foul play…. $600 is what you place a threshold at when you’re so weak & poor you don’t dare go after the rich because they’re running you - not the other way around.) $600 is cut throat dog eat dog bottom of the barrel broke status desperation. When your government starts nickeling & diming anybody with $600 or more … & when your governments only remarks about a cargo ship crisis are assuring you you overseas purchases will be here soon/by Christmas  rather than advising it’s people to stop buying overseas or to buy less in general … SOMETHIN’s WRONG. 

[keynesguy]

Income is income -- that's not nickel and dining -- it's the law.  My concern is imposing a paperwork burden when the amount raised will be very little because -- sorry to say this -- it will be paid by people who will pay little or no income tax anyway. 

[us_bmich]

Just FYI, you wouldnt owe a dime using the example you just gave, in fact, not counting depreciation of the item, you would actually be able to show a loss on your Bluetooth against another item that gained.

The IRS is not going to come after you for selling your old stuff, as long as you report your yearly gains or losses.

Its part of owning your own business or sidehussle. Always remember, you only pay taxes on PROFIT, minus deductions.