Taxes

[erd33sage]

This is the first year I have gotten a tax form from Ebay. I cant believe I owe taxes on selling personal items! I tried to write off the shipping, but I still have a small profit. What are people doing? I have been on ebay for 20 years and would hate to leave.

[mtgraves7984]

Will the small profit put you into a higher tax bracket? Was your profit larger this year than in years before?

Remember that there are more deductions than just shipping costs...

[b86fiero]

You say you have been on eBay for 20 years.  Have you been selling on eBay during that time?  Have you never claimed the income from selling and not paid the taxes due?

You might have a problem.  Contact a tax professional asap.

[monroe67]

What are people doing?

People are paying their taxes.   Like they always have been required to.  

The reduction of the reportable amount of income is meant to encourage people to pay taxes on that income.   

[a_c_green]

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@erd33sage wrote:

This is the first year I have gotten a tax form from Ebay. I cant believe I owe taxes on selling personal items! I tried to write off the shipping, but I still have a small profit. What are people doing?

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You have other expenses as well, such as cost of materials for your shipping, and you can make a fair estimate of what you spent to acquire the items originally, which would probably come close to zeroing-out what "small profit" you made from their resale. The IRS is not going to come tromping into your house to demand receipts for the couch you bought from Sears in 1967.

That aside, your "small profit," when added to whatever else you're declaring as income for the year, is not likely to nudge the needle on your tax bill (or refund) all that much. People seem to freak out over that $600 threshold, when in fact the actual net income after expenses and before taxes is not going to be that much.

[katzrul15]

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@erd33sage wrote:

This is the first year I have gotten a tax form from Ebay. I cant believe I owe taxes on selling personal items! I tried to write off the shipping, but I still have a small profit. What are people doing? I have been on ebay for 20 years and would hate to leave.

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Your post is confusing.

Did you do your taxes or a tax professional?  Most Sellers work to be a "for-profit" enterprise.  Are you selling more than just items lying around the house?

20 years is a long time to have benefitted from online selling to result in a quandry now?

We have a burden rate that we add/apply to every listing to work to cover taxes.  It was developed by our CPA.

Good luck as you work to sort this out. 

[erd33sage]

I just feel like I already paid taxes when I bought these items. For example I bought a dress for $100, wear it,  sell it for $30 pay $5 shipping and then pay taxes on the $25.00 profit... oh wait ebay fees too. I didn't buy things whole sale. I am not a store.

[erd33sage]

It does change my tax situation. I have sold more items in the past. I wish I had receipts for these items. I cant even remember what I sold as ebay takes it off the system after some time.

[erd33sage]

I didn't realize items like a phone i bought paid taxes on,  used for a period of time, and sold on ebay for less with fees and shipping was subject to another layer of tax.

[erd33sage]

Thank you

[monica-sells]

+...I bought a dress for $100, wear it,  sell it for $30..."

You do realize you just answered your own question....right?

you LOST $70.00 on that item.....so there is no change in your taxable income....

take a minute to learn how to make the tax system work for you, not against you....

[wrong66]

You're confusing sales tax with income tax.

[erd33sage]

I have a tax professional. This was the first year I received something from ebay.

I am only selling personal items. School books, clothing, toys it adds up but is around $1000 a year. I have had some years that were greater than this.

I like the idea of a burden rate. Thank you,

[iart]

You've had an unfair advantage over the rest of us who do pay our taxes, for 20 years!  You've been able to undercut prices and save a ton of time record keeping.

No tears here.

[erd33sage]

Sorry I was referring to income tax