ebay posts about the new IRS Rules ( the $600 Reporting Rule)

[my-cottage-books-and-antiques]

https://community.ebay.com/t5/Announcements/A-big-change-to-federal-tax-reporting-laws-that-will-aff...

[loco4locos]

Over the years I've purchased over $100,000 on postwar Lionel trains in anticipation of my retirement. I had intended to, over my retirement years,  tinker with, fix up,  and re-sell these trains on eBay. All my past sales have ALWAYS be at a loss but I never intended to make a profit. The entire process was done just for fun and to keep me busy and to keep old Lionel trains working and bringing pleasure to people. When I started out your sales limit was $20,000 and 200 listings. Never did I imagine the IRS would swoop down and ruin my retirement plans!  Now the reality is I am required to go back and find records each purchase and calculate whether I made a profit or not on it's sale. I would have to hire an accountant to calculate my tax liability. Too much work for too little reward. My selling days on eBay are over!. I cancelled my current listings that would have put me over the new $600 limit because I don't want to be bothered with another layer of the IRS.  I just wish they would be as focused and concerned about their own wasteful  spending as as they are about my little hobby eBay transactions. I.m starting to feel suffocated living in my own country!!! 

[downunder-61]

If you read the link provided by the OP a lot of your concerns willl be addressed. 

[mr_lincoln]

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@loco4locos wrote:

Over the years I've purchased over $100,000 on postwar Lionel trains in anticipation of my retirement. I had intended to, over my retirement years,  tinker with, fix up,  and re-sell these trains on eBay. All my past sales have ALWAYS be at a loss but I never intended to make a profit. The entire process was done just for fun and to keep me busy and to keep old Lionel trains working and bringing pleasure to people. When I started out your sales limit was $20,000 and 200 listings. Never did I imagine the IRS would swoop down and ruin my retirement plans!  Now the reality is I am required to go back and find records each purchase and calculate whether I made a profit or not on it's sale. I would have to hire an accountant to calculate my tax liability. Too much work for too little reward. My selling days on eBay are over!. I cancelled my current listings that would have put me over the new $600 limit because I don't want to be bothered with another layer of the IRS.  I just wish they would be as focused and concerned about their own wasteful  spending as as they are about my little hobby eBay transactions. I.m starting to feel suffocated living in my own country!!! 

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@loco4locos   100K on Lionel trains ... that must be quite a collection, not to mention the space required to store and display the engines, cars and accessories ... personally, I would love to see that.  I've seen a few large collections and they quite are impressive.  Please don't take this the wrong way but Americans are required to report additional income and internet sales up to the previous 20K threshold (pretty much for all venues, not just eBay) qualifies as that.   I am sure a lot of Sellers have not done that over the years but now they will have to or like yourself, stop selling.

As it relates to what you have I suspect that you could easily make a profit on everything you sell in that category. 

Regards,

Mr. L

[sakic92710]

The selling forum is getting boring when most of what I see is about taxes.  Go to Google & research it.  Why does it have to be a steady topic here?  I want steady boring topics, over & over again, about lousy sales!  lol  Why is it that I am making as much, per week, on eBay as I did 30 years ago working part time for a carpet store at $7 an hour??  Who the **** can live on $200 a week??!   Happy ****ing New Year!   😛  

[dq3141]

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@sakic92710 wrote:

Why is it that I am making as much, per week, on eBay as I did 30 years ago working part time for a carpet store at $7 an hour?? 

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Every business person I know makes about as much money as their business acumen allows them to make.

[sakic92710]

The problem isn't my business acumen.  It's the buyers who don't have the purchasing acumen to buy my items!  LOL   🙂   I had to do it.  😛

[dq3141]

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@sakic92710 wrote:

The problem isn't my business acumen.  It's the buyers who don't have the purchasing acumen to buy my items!  LOL   🙂   I had to do it.  😛

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Whatever helps you get through your $7/hour day.

[wildpitchsports]

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@mr_lincoln wrote:

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@loco4locos wrote:

Over the years I've purchased over $100,000 on postwar Lionel trains in anticipation of my retirement. I had intended to, over my retirement years,  tinker with, fix up,  and re-sell these trains on eBay. All my past sales have ALWAYS be at a loss but I never intended to make a profit. The entire process was done just for fun and to keep me busy and to keep old Lionel trains working and bringing pleasure to people. When I started out your sales limit was $20,000 and 200 listings. Never did I imagine the IRS would swoop down and ruin my retirement plans!  Now the reality is I am required to go back and find records each purchase and calculate whether I made a profit or not on it's sale. I would have to hire an accountant to calculate my tax liability. Too much work for too little reward. My selling days on eBay are over!. I cancelled my current listings that would have put me over the new $600 limit because I don't want to be bothered with another layer of the IRS.  I just wish they would be as focused and concerned about their own wasteful  spending as as they are about my little hobby eBay transactions. I.m starting to feel suffocated living in my own country!!! 

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@loco4locos    I am sure a lot of Sellers have not done that over the years but now they will have to or like yourself, stop selling.

As it relates to what you have I suspect that you could easily make a profit on everything you sell in that category. 

Regards,

Mr. L

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Mr. L you still have 271 items up, you may already be on the hook.

[loco4locos]

Why are so many of you so eager to support the collecting of additional tax dollars for the Federal government to just waste and give to people who don't deserve them. Do you actually support the hiring of 10,000 additional IRS agents who's job it will be to inspect every single eBay account over 6 $601?  Can you imagine  the positive effect on the federal budget if those same people's job would be to oversee government spending??  I'm for reasonable tax collection when I know my government is scrupulously overseeing the spending of our tax dollars. But that has not, and continues to not be the case. When will people start demanding LESS taxation and MORE CAREFULL spending of our tax dollars?????? Until that time I"m not participating in selling on eBay and having to prove to the IRS through a lot of paperwork and wasted time that I have never made a profit selling ANY of my trains. Purchasing a train in addition to paying for shipping always has resulted in a net loss when I have re-sold the same item. It's never been for profit, it's always been for fun. But the IRS and government have changed all that. Good luck to all of you remain selling on eBay!

[fern*wood]

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@loco4locos wrote:

Why are so many of you so eager to support the collecting of additional tax dollars for the ...

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I haven't heard many people ever say they are eager to pay taxes or enjoy messing with the paperwork, but I never thought it was an option--you know the saying about death & taxes.   Anyway, you mention $20k/200 items and seem to feel if you stayed under that, sales never had to be reported.  That just isn't the case.  We have always needed to report them--we just didn't get a 1099k unless that threshold was passed.   

[downunder-61]

It really is concerning, there honestly seems to be a lot of people who are not aware that they are even doing anything wrong, simply not understanding tax thresholds and reporting requirements.

Sure, there are the ones that spout off about ''I AM NOT blah blah'' openly flouting the law, but I am amazed by the number of people simply  uninformed - this could be a lesson very well learned - and at a very high $$  cost to them.

[mr_lincoln]

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@wildpitchsports wrote:

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@mr_lincoln wrote:

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@loco4locos wrote:

Over the years I've purchased over $100,000 on postwar Lionel trains in anticipation of my retirement. I had intended to, over my retirement years,  tinker with, fix up,  and re-sell these trains on eBay. All my past sales have ALWAYS be at a loss but I never intended to make a profit. The entire process was done just for fun and to keep me busy and to keep old Lionel trains working and bringing pleasure to people. When I started out your sales limit was $20,000 and 200 listings. Never did I imagine the IRS would swoop down and ruin my retirement plans!  Now the reality is I am required to go back and find records each purchase and calculate whether I made a profit or not on it's sale. I would have to hire an accountant to calculate my tax liability. Too much work for too little reward. My selling days on eBay are over!. I cancelled my current listings that would have put me over the new $600 limit because I don't want to be bothered with another layer of the IRS.  I just wish they would be as focused and concerned about their own wasteful  spending as as they are about my little hobby eBay transactions. I.m starting to feel suffocated living in my own country!!! 

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@loco4locos    I am sure a lot of Sellers have not done that over the years but now they will have to or like yourself, stop selling.

As it relates to what you have I suspect that you could easily make a profit on everything you sell in that category. 

Regards,

Mr. L

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Mr. L you still have 271 items up, you may already be on the hook.

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@wildpitchsports   LOL, check it now!  Under 200 ... actually my target is to have 400 plus listings.  I am in a low point for inventory acquisition AND I just diverted over 1/3 of my listings to a different venue.

I understand the OP's frustration but it's apparent that they have not been reporting their internet sales for many years.  I'm not sure if they understand they can actually report a Loss ...

Do I like paying taxes?  No but I do ...

[zoso926]

Just toss the form in the Garbage.  The IRS is not coming after everyone.  This is beyond Government over reach and abuse.  eBay has it's duty to just provide you the form and that's it, just toss the form in Garbage

[downunder-61]

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@zoso926 wrote:

Just toss the form in the Garbage.  The IRS is not coming after everyone.  This is beyond Government over reach and abuse.  eBay has it's duty to just provide you the form and that's it, just toss the form in Garbage

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.......... and hope that the IRS tosses the form they receive as well, LOL

[sidmund]

 People who like this just don't understand us small sellers. I sell my old computer parts etc.. on ebay  when I upgrade to newer equipment. It's always at a loss and most of the parts and old pc's are sometimes 10yrs old but now if I make over $600 i get a 1099 that I have to report on my taxes. Now the burden of proof is on me to fine and maintain receipts for everything I buy and I sure don't have ones from 10yrs ago. I never make a profit and now will have to deal with filling out more tax forms to justify my losses on say $601. they could have at least been more reasonable I mean $20,000 down to $600?  More taxes on the little people is all this is and I hope all the little people that supported this legislation who sell on poshmark, mercai, ebay, and all the other platforms are happy they get to pay taxes on their sales.