eBay

frumme2u · ‎10-09-2021

All my item are used and have already been taxed and if i get them at goodwill it is taxed again.

Next year if a seller makes more than $600. they will be taxed. Should I /can I just have tax included on every item? And if there used do I need to collect taxes on those item even if I paid taxes on items already.

I live in Florida

a_c_green · ‎10-09-2021

@frumme2u wrote:
All my item are used and have already been taxed and if i get them at goodwill it is taxed again.
Next year if a seller makes more than $600. they will be taxed. Should I /can I just have tax included on every item? And if there used do I need to collect taxes on those item even if I paid taxes on items already.

I think you're confusing sales tax with income tax. You (the buyer) pay a tax on the sale. The seller pays a tax on his income.

eBay collects the sales tax and remits it to the state, so the seller does not need to collect or pay that. He does need to pay income tax on his tax return, so you (as a seller) will want to track your expenses in order to apply as many deductions as possible.

theteamsetguy · ‎10-09-2021

No different than when you buy a used car from the dealer. You pay sales tax when you buy a used car from the dealer. Lets say you keep it for 3 years and trade it in to the dealer for another car. When the dealers resells the car again you just traded in the new buyer has to pay sales tax.

In this example sales tax would have been collected 3 times on the same car. The buyer that bought brand new paid sales tax, you paid sales tax when you bought, and the new buyer paid sales tax when they bought it.

It doesn’t matter whether an item is new or used. Sales tax is collected EVERY time there is a SALE. There is no limit on the number of times an item is resold.

buyselljack2016 · ‎10-09-2021

@frumme2u wrote:
All my item are used and have already been taxed and if i get them at goodwill it is taxed again.
Next year if a seller makes more than $600. they will be taxed. Should I /can I just have tax included on every item? And if there used do I need to collect taxes on those item even if I paid taxes on items already.
I live in Florida

Next year a 1099-K will be sent for sales total of $600 or more.

It has nothing to do with being taxed, or not. All profit is taxed(income tax) 1099, or no 1099.

richard1rst · ‎10-09-2021

And when you die whatever you have left over will be taxed again.

"Laissez-faire capitalism (AKA The Great Material Continuum) is the only social system based on the recognition of individual rights and, therefore, the only system that bans force from social relationships." ~ Ayn Rand

femmefan1946 · ‎10-09-2021

A sales tax is a tax on the sale, not on the item.

If something is sold six times, there are six taxes on six sales.

Usually the selling price on each sale goes down as the item gets more and more used even obsolete. Sometimes it may rise- if a collectible item becomes more in demand (For example the postage stamp Scott Canada #158 originally cost 50cents, but today catalogues between $300 and $1500.)

The tax on the sale is based on a percentage of the payment for the sale.

nobody*s_perfect · ‎10-09-2021

As you have seen at Goodwill, even used items are subject to sales tax. It's a tax on the sale (the transaction) not on the item, so an item is subject to sales tax no matter how many times it's resold.

On eBay, the sales tax is based on the buyer's location (well, on the address that the item is shipped to, to be more specific). Florida is one of many states that require eBay and other "marketplace facilitators" to collect and remit the sales tax for online purchase that are shipped to FL. Sellers don't participate in this activity at all.

As noted in the other post, income tax is a whole separate tax, payable to the federal government nd also most states. It's paid by the seller. If your transactions go over the federal thresholds, then you'll get a 1099-K from eBay/Adyen. But even if you don't, the income is taxable.

downunder-61 · ‎10-09-2021

The same item can be taxed over and over?

Yep - just like The same question can be asked over and over

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coolections · ‎10-09-2021

Ebay automatically charges the buyer tax. The amount is adjusted depending on which state they are buying from. You don't need to do anything. As far as "income" tax that is something different and how that works is whatever you make on Ebay, (item cost -selling price), is called income. That is what you add to your federal and state tax returns as far as how much you earn a year.

simba6 · ‎10-09-2021

It's not the item, it's the act of selling it that is taxed. That goes on and on.

bbravo65 · ‎10-09-2021

@downunder-61

...the same question can be asked over and over but...the answer might be different depends on the responder...

chapeau-noir · ‎10-09-2021

@downunder-61 wrote:
The same item can be taxed over and over?

Yep - just like The same question can be asked over and over

LOL - no kidding. And there doesn't seem to be much notion that tax assessment isn't just magicked out of thin air - the cost required to assign 'new' and 'used', taxed versus untaxed on 10s of millions of transactions and then provide an audit trail for every single one of these transactions (verifiable AND provided by the item owner), proving taxable event would be enormous.

Hell is empty. And all the devils are here.

bbravo65 · ‎10-09-2021

@richard1rst

...estate taxes and inheritance taxes = death taxes, theses taxes are assessed against your property after you die...

...having a Wills somehow can reduce the impact of those taxes...better ask a lawyer...

7606dennis · ‎10-09-2021

I imagine that many antique and art collectors would love it if items that were taxed when purchased by their original owners weren't subject to sales tax. Of course, being that you're in Florida you don't have a state sales tax.

However, since you're the seller your buyers will have to pay their state's sales tax on their purchases from you. The good news is that eBay will collect it and remit it to the appropriate state, since I believe that all the states that charge their residents sales tax now have marketplace facilitator laws in place. Of course, I recommend contacting the Florida Department of Revenue to see how they want you to account for those sales on your DR15 return.

"It is an intelligent man that is aware of his own ignorance."