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.

[wrong66]

When you bought the dress, that was Sales tax. When you sell the dress, the amount is declared for Income tax. 

[7606dennis]

---

@erd33sage wrote:

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.

---

That is not the way the tax laws work.  Recommend that you consult a tax professional.

[7606dennis]

---

@erd33sage wrote:

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.

---

Of course you realize that the taxes that you must pay are not sales tax levied by a state.  Those are the responsibility of the buyer.  Rather, we are talking about Income Taxes which you, the seller, may be required to pay on income received from your sales on eBay.

[7606dennis]

---

@erd33sage wrote:

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,

---

Did you inform your tax professional of the income that you were making from your eBay sales activities?  Whether or not you received a 1099, you were required to include your eBay income in your gross income on your tax return.  If you informed your tax professional about receiving that income and they didn't include it, I'd find a different tax professional.

[thexfactor42]

One of the many reasons I stopped selling on this dumpster fire of a website last May. Craigslist works just fine (sales are actually up), plus now I don't have to worry about shipping, shipping costs, buyers fake complaining about "never received", "damaged", "not as described but I still want if for for free", the State or Feds double-dipping on taxes- none of it.

[the_fancy_fox]

Except when you buy something for personal use and sell it at a loss you don’t pay income tax on it. They may need a tax professional to show them how to do their taxes to reflect this.

[the_fancy_fox]

The only time you pay tax on sales of personal items is if you make a profit. 

here’s from Turbo Tax

Do I have to report personal items that I sold?

SOLVED•by TurboTax•598•Updated 2 weeks ago

Only if you sold it for more than what you originally paid.

Most of the time, personally-owned stuff like cars, appliances, clothing, furniture, and other household items decrease in value after the initial purchase. If you later sell them, it's almost always for less than what you paid, so there's no gain to report. There's also no loss. The IRS won't let you deduct losses on personal items.

[johnrj1226]

It isn't  a matter of  what  you feel.   But there is a big difference between a sales tax (what the end user pays at retail) and income tax based on revenue received - it is up to the individual to determine how  much they mail on the gross amount you received whether you received a 1099K or not..  There are 5 states that don't have a sales tax they are: Alaska, Delaware, Montana, New Hampshire, and Oregon - I'm certain they  have other taxes (aka revenue sources/streems) to make up the difference.

[johnrj1226]

In 1998 I bought a vehicle (SUV) paid $18,000 I drove it for  several years  accumulated 276,000 miles I sold it for fair market  value 3  years ago for $850 it was still running and it was a Ford Explorer.  I can't  claim I lost any money but I did use it and it depreciated in value,  just like clothes/shoes, boots, cell phone do and their current value is based on what a willing buyer is willing to pay for  at a resale price and/or retail price  based on   several factors - condition being one.-..

[anjofak]

Buying our merchandise,  moving our merchandise,  PROPPER storage of our merchandise,  sorting/ cleaning/ listing if we do, then plus postage and propper packaging..

With higher quality experience than the average 👌 

[theteamsetguy]

I don’t get why there are so many people against paying taxes? Would you rather live in a country like Russia or China where most of the people don’t pay any taxes but have no freedom? 

The US is a great country but everyone has to pay their fair to keep the country great. Someone has to pay for the roads, schools, military, police, and social programs for the needy.

[theteamsetguy]

However, if I was the one that bought it from you three years ago and drove until I sold it recently for $5,000.00 because the price of used cars have gone bonkers. I would have to claim the $4150.00 as income.

[714ricki]

Besides deducting, the shipping cost, maybe shipping supplies, fair market value for the item, I would talk to a  tax professional about other tax deductions. Ideally, you would want a tax professional who is familiar with ecommerce transactions. That discussion with the tax professional should help you!!!

Good luck!

[soh.maryl]

The state sales tax is on the transaction, not on the item.

And why would you, the seller pay shipping on something you sell? The buyer pays you and you pay the shipper.  

[bearswatching]

I have a feeling a lot of people who do their own taxes for the first time are going to be paying income tax on non-existent “income “. A LOT.