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.

[dogofwar777]

Another reason I stopped selling here. 

[dbfolks166mt]

     The hobby vs business discussion comes up often on these boards and there are so many IRS checkboxes on what constitutes the difference nobody should take any advice on these boards related to whether they are a hobby or a business. Tax professionals and the IRS are the best sources to make that determination. 

     Unless they revamp the IRS I highly doubt there will be many people audited who suddenly start filing schedule C's. The IRS simply does not have the resources to audit millions of filers who start reporting minor income, or losses, for a business venture. At the present time the IRS is still processing, not auditing, millions of returns from 2019 and 2020. I have a friend who is still waiting on their refund from 2020 and they have contacted the IRS multiple times and been told it is still in progress they are just backlogged. 

[the_fancy_fox]

Yeppers. I was just pointing out the basics to counter the “if you sell it you owe taxes on it”  I didn’t want to get into the full on how to. But since Ebay is sending out 1099’s all sales have to be accounted for to the IRS to show profit/no profit on them.

 The best thing is to keep very detailed records. Right now I do commission sales, sell the things I create and sell the things I have inherited. To say the least, it’s a lot of excel sheet data entry to keep it all straight. 

[johnrj1226]

You maybe be right or no so right but  depending on the current condition, make and model popular options - current mileage, condition inside  & out and working condition, tire, brake wear, and accident  repair from some whiskey wrinkle, flood soaking  or  a good old fashion  West Texas or Oklahoma sand storm blasting, etc - a lot  can happen  to a used car - that is why there  are 3 different conditions in the Kelley's Blue Book and optional feature  packages - right.  Those  percentages of increase in sales price are based on an AVERAGE selling price - some maybe be more and some may have increased  a  lesser amount.  Brand reputation may  have an  impact - ask any former Corvair or Pinto owner.

[johnrj1226]

Me thinks she  just wanted to find some person to agree with their view point  that  was over heard at the water fountain..