Taxes

[rdoubleus@aol.com]

Has anybody figured out how to beat the new 1099 tax bite? Is there a way to get paid for items sold on eBay that doesn't generate a 1099?

[wildpitchsports]

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@maxine*j wrote:

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@mr_lincoln wrote:

Seriously rdoubleus@aol.com ?  You are asking here how to evade taxes? ...

Mr. L

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And soliciting others to help him evade taxes which will carry for them, should they do so, serious penalties under the law.

=

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I can't even disagree with this

[assortedcollectibles]

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@wildpitchsports wrote:

The serfs don't have time for hobbies they need to work 3 jobs to keep paying more taxes

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b-but how would they get to those jobs without roads?

[wildpitchsports]

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@assortedcollectibles wrote:

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@wildpitchsports wrote:

The serfs don't have time for hobbies they need to work 3 jobs to keep paying more taxes

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b-but how would they get to those jobs without roads?

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I used to live in big cities, ie, New York, Tampa and I would have believed that.

Out here in nowwhereville, TX there are legit dirt "roads" that people have created with trucks lol

[monica-sells · Accepted solution]

just play by the rules and legally neutralize the amount.....

Quick & Dirty Sample...
(No Sales Tax State for sake of simplicity)
10 $60.00 Sales (14.55% Category)
Item Sale-55.00 ea. (X 10)
Shipping -5.00 ea. (X 10)
Gross Total-600.00 (Qualifies for a 1099-K)
Line Item on 1099-K 600.00
Amount transferred to your Schedule C - 600.00
Deductions from the Gross Amount
Shipping - 50.00
eBay FVF - 87.30
Fee - 3.00 (0.30 X 10)
(These are the 3 "Basic" deductions from the Gross)
Optional:
Promoted Listing Fee (7.2%) - 39.60
Leaving "Taxable" Income at 420.10
(420.10)
Additional deductions/expenses:
Original Price or Acquisition Costs:
(Receipt or Proof of Comparable Item Cost)
Each Item costs me $20.00 ($200.00 COG)
(220.10)
Shipping Material: ($69.00)
(Box/Envelope/Tape/Padding/Bubble Wrap/Labels)
10 Boxes @4.00 each/4.00 Tape/13.00 Bubble Wrap/12.00 Labels
(151.10)
Auto Mileage:
(Post Office Trips 5 miles each way)
10 miles X 10 Sales = 100 miles @ .56/mile
56.00
(Trip to Wholesaler/Market/Garage Sale/Flea Market)
50 miles (kept in journal I keep in car)
28.00
(67.10)
Internet Subscription
(% of use attributed to Listing)
120.00/month (25% ebay listing use) $30.00
(37.10)
Photography Material (Cameras, Tripods, Light Box etc....)
$35.00
(2.10)

....the list goes on and on

Net Taxable Income from 600 in Gross Sales is 2.10 without even trying hard

[wildpitchsports]

I like this breakdown, I guess it will be up to each individual to see if it makes sense for them to continue or not. For some it will be but I would think for a majority it won't

[wildpitchsports]

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@katzrul15 wrote:

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rdoubleus@aol.com wrote:

Has anybody figured out how to beat the new 1099 tax bite? Is there a way to get paid for items sold on eBay that doesn't generate a 1099?

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No.  And no one would/should try.

With the implementation of Managed Payments, any account you open on e-Bay would have the same common info to generate a 1099-k (i.e. SSNs, etc)

It's early.....perhaps you did not realize how you postured your question?  It appears you are asking other Sellers to share potential methods to evade taxation?

QuickBooks is your friend.  All the best!

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This is even too much for me ... agreed with your response

[maxine*j]

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@wildpitchsports wrote:

... I guess it will be up to each individual to see if it makes sense for them to continue or not. For some it will be but I would think for a majority it won't

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I agree it's an individual choice each seller must make, but I think that for the majority there's no reason to leave because of this new reporting requirement.

Most of the people who come here alternating crying and cursing about the new reporting requirement are unlikely to owe any taxes on income from their eBay sales. 

All they need to do is keep the most fundamental records, in a simple database on their computers or just in a notebook, get receipts and put them in a shoebox, and then use that  info with an easy tax app or take it all to a tax preparer at tne end of the year.  Nothing complicated.

But rather than solving this simple problem, people prefer to make this all about partisan politics and to fling themselves about and make announcements and pronouncements. 

Really, it's just the ordinary stuff of life.  And, as Fran Varady said, "But even a change of problems is something, and the way life goes, sometimes it's the best you can hope for."

=

[kensgiftshop]

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@myboardid wrote:

You have just admitted that you plan to (already have?) cheat on your taxes.  Not a smart idea.

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There seems to be a lot of that around here.

[wildpitchsports]

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@maxine*j wrote:

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@wildpitchsports wrote:

... I guess it will be up to each individual to see if it makes sense for them to continue or not. For some it will be but I would think for a majority it won't

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I agree it's an individual choice each seller must make, but I think that for the majority there's no reason to leave because of this new reporting requirement.

Most of the people who come here alternating crying and cursing about the new reporting requirement are unlikely to owe any taxes on income from their eBay sales. 

All they need to do is keep the most fundamental records, in a simple database on their computers or just in a notebook, get receipts and put them in a shoebox, and then use that  info with an easy tax app or take it all to a tax preparer at tne end of the year.  Nothing complicated.

But rather than solving this simple problem, people prefer to make this all about partisan politics and to fling themselves about and make announcements and pronouncements. 

Really, it's just the ordinary stuff of life.  And, as Fran Varady said, "But even a change of problems is something, and the way life goes, sometimes it's the best you can hope for."

=

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Very true, very true. Usually I am anti-tax blah blah but honestly posting this kind of question to literally ask what they did is even too much for me.

[7606dennis]

What new tax bite?  Since the accurate reporting of income has always been a requirement of the tax code what tax bite are you referring to? 

The lowering of the amount at which a 1099k must be issued is an administrative issue for the payment facilitators and shouldn't be an issue for anyone that is currently accurately reporting their income and has been doing so all along.  However, it does eliminate at least one way for those evading income taxes to do so. 

Frankly, to post a question asking for ways to get around this would seem to be drawing attention to one's past indiscretions and probably not the best thing to be doing on a published forum such as these boards.  

[7606dennis]

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@kensgiftshop wrote:

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@myboardid wrote:

You have just admitted that you plan to (already have?) cheat on your taxes.  Not a smart idea.

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There seems to be a lot of that around here.

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Yes, there does seem to be a lot of people outing themselves on these boards over this issue.  I wonder if the IRS has people monitoring this and others to find likely people to audit.  That would seem a more efficient use of our tax dollars than randomly choosing people to audit.  😉 

[gatefold]

This "misinformation" is what drives so many of these misconceptions...

Type this long tail search query into Google:

"how much can i sell on ebay without paying tax"

Do You Have to Pay Income Tax on Stuff Sold on eBay?

https://money.howstuffworks.com › ... › Taxes

Jan 27, 2022 — You can sell up to $20,000 or have a maximum of 200 transactions on eBay before you must pay income tax on your earnings.

This is the Number 1 search query return....

sad...........

[dnasilver]

What tax bite? A 1099K has nothing to do with if you owe income taxes. It shows how much money a company sent you. So, why would that concern you? You decide how to handle that 1099K on your yearly Income taxes. No different than any other year, you make money, you tell the IRS, based on laws and how your situation falls within the law will determine if you owe taxes, break even, or have a tax loss.

[714ricki]

Instead of trying to figure out ways to avoid the tax bite, I would say just report all your earnings & pay your required taxes. You will sleep better & avoid the specter of the IRS. 

[dnasilver]

Yep the last administration removed all the tax deductions that were available for hobbyist and selling of unwanted/no longer needed personal items. Really a bummer the last administration did that, but hey the ultra-rich got big tax credits for buying a new jet.