eBay

mydisneylife200 · ‎08-12-2021

I received a letter in the mail today from the IRS claiming I owe thousands in taxes for stuff I sold through eBay.

Anyone else receive a letter like this??

If this is the case I think I am done with eBay… I own thousands in collectibles which I purchased from many retailers and paid taxes upon purchasing. I sold stuff on eBay that I no longer wanted to collect with the money gain I purchased other collectible for my current interests. I think from now on I rather sale through garage sales or on platforms where people meet up and pay cash.

Anonymous · ‎08-22-2021

I think the current state of this country and the future is terrifying.

I never said that online selling should be tax-free. You really feel that all online selling needs to be reported? What if you only sell 2 or 3 things a year? "For reals?" = lol. THAT is going back to the Bill Clinton years.

redmodelt · ‎08-22-2021

1 or 2 or 3, still is income. All sellers on eBay whether you have a store or not, are considered a business. eBay has not been a tag/garage sales platform for a long time, in fact it never really was when it come to paying taxes due.

Anonymous · ‎08-22-2021

Well, it's the truth. You can ask my husband. This house is full of dolls and Care Bears that didn't walk in here last night. Some of the Care Bears, my parents bought for me in the mid-80's (I was born in 81'.). Some of the items I've sold are for my mom. Most all of the handbags are. Those, I know very little about. My husband said I didn't have to include those since the money goes to her (and I have copies of the checks written to her both in my bank records and in my check book). I have written them down, anyway.

Anonymous · ‎08-22-2021

I don't have any problem with paying taxes. I just never knew I had to and never thought about it. When I started selling more was when my husband said that I should be writing down my sales.

reallynicestamps · ‎08-22-2021

Sometimes husbands are right.

He should also have told you to write down your other costs, eBay and Paypal fees, packaging supplies, cost of shipping labels and postage. Perhaps even the cost of using part of your house as a selling centre.

You need a tax accountant with a specialty in online selling. Not H&R Block.

You'll have a hard time explaining that Loki and Space Jam merch that was produced in 2021 as "part of your longstanding collection". Hope you saved the receipts for those.

Anonymous · ‎08-22-2021

I don't even know what Loki is and the Space Jam toy was a giveaway with a purchase. I don't know what you're trying to say or prove, but ok. I don't have time for whatever it is. I don't know you care so much about me or my sales, either. It's creepy when people on here do stuff like that. Good luck to you!!

Anonymous · ‎08-22-2021

BTW, the Space Jam toy was from a Happy Meal I got. You think I got a receipt for that? Go harass someone else. I am a good and honest person. I don't know why people here insist on harassing others. I won't let it affect me. I haven't said anything the least bit wrong or untrue. #karma It comes around. Some people need a free toy in their lives or something....

reallynicestamps · ‎08-22-2021

Loki is the highest priced item the OP is selling - based on the streamed Disney Plus series of July 2021.

I'm a little surprised that the US MacDonalds gives out Funko Pops with Happy Meals, but apparently you added on to another seller's post, and I didn't notice there were two sellers with the same problems.

axiombody · ‎08-22-2021

I can't accept this is not a business when you sell items from Jungle cruise movie a month or two old. These aren't your own collectibles. What exactly are you trying to claim besides buying stuff to sell which is in fact a business.

releasethekraken_1 · ‎08-23-2021

@Anonymous wrote:
BTW, the Space Jam toy was from a Happy Meal I got. You think I got a receipt for that?

Since you got it for free, your cost basis is $0.00, so there's obviously no need for a receipt. The full amount that is sells for is taxable income.

Anonymous · ‎08-23-2021

I didn't get it for free - Happy Meals cost almost $5, you know.

I don't buy stuff to sell. I buy stuff because I have fairly severe mental health issues that cause me to attach to toys and dolls, especially those from my childhood. It is almost like a compulsion. In fact, it can sometimes not be stopped. I had a terrible childhood so a part of me will always be locked back in the time of my life before it got really bad.

I rarely ever make anything esp since I'm now giving away brand new toys with purchases. I often ask myself why I do this, but then I get a message from someone saying that my listing made their day. I think I just like setting up displays with them more than anything. You can look at my prices and look at what similar items sell for. You really think I get my items for free or at thrift stores? This city has nothing but a small Goodwill, and it never has anything. You can look it up if you don't believe me.

I'm not asking anyone to feel sorry for me. Just don't make up lies about me and accuse me of things. I 100% don't understand what I'm even being accused of. I'm staying off this thread now for my own good. Thanks for making me upset and trying to ruin my day! You didn't succeed. Evil people... #KARMA 🙂 Don't be jealous and hate on good people. Just do better, and be better. You can find your own success that way.

Anonymous · ‎08-23-2021

Who are you even talking to? If you're going to make off-topic accusations to random people on this thread, at least directly respond to the person so we can know who you're talking to. If you are talking about me, I never said anything about being a business or not (?).

Every time I go on these boards, I am really sorry I came here. I would rather dip myself in boiling water than ever ask for help in this toxic place again.

stainlessenginecovers · ‎08-23-2021

I don't think most replying are trying to give you a hard time. We're trying to tell you that many of the items you are currently selling look to be 'bought for resale'.

A couple things you should know, and you can talk to a CPA (and should) on all of this.

1.) Your husband is wrong; unless you now give your mother a 1099 for the money you gave her, or she would need to give you a receipt for the cost of each and every item you sold for her...but bottom line, it went into your PP account from your Ebay sales and you either get a receipt for the cost of the item to offset the sale of it, or you will be paying the IRS on taxes for 100% of the sale of that item (minus shipping and ebay/pp fees if you can locate that information). Checks to Mom do not qualify as a write off if you are audited, but if she purchased those handbags, maybe she has original receipts that you can now use?

2.) A give away given when you purchase something, ie. you purchased a 'happy meal' and that toy is considered 'free' by McDonalds. Therefore, anything you now sold that toy for is 100% profit and 100% taxable (as far as vs. item cost, not including fees and shipping paid). You ate the food. That's what you paid for. The toy was free; if you sold it for $10, you made $10.

Again- not trying to beat you up; just trying to give you fair warning. It appears obvious from the items you are currently selling and have sold the past 90 days looks to be different than the story (all simple publicly accessible information by clicking your id, your listings, and then sold listings..anyone can see this).

The IRS is not stupid...so I'm just telling you that you will need proof of the Cost of Goods to help OFFSET the profit that you will be taxed on.

releasethekraken_1 · ‎08-23-2021

@Anonymous wrote:
I didn't get it for free - Happy Meals cost almost $5, you know.

Unless they charged you more than the going rate for the Happy Meal, the toy was free (as they advertise), and your cost basis is $0.00. If you were joking, great. If not, you desperately need an accountant.