Ebay totally sucks. Be careful

[Tunaman]

They are now sending your info to the IRS for any sales over 600 bucks. You must provide a social security number or you dont get paid. They are charging final value fees that now include shipping and tax(which the buyer pays). So 12.55% +30 cents plus you have to report it on your federal return and state return so I figure add 30% at least to your asking price. 119 dollars plus is what they charged me on an 850 dollar sale. Not worth it if you ask me.

[nak81783]

I wondered what someone on another forum was talking about when he mentioned an IRS tax. I'm curious, is this for all sellers or just businesses?

[dstud2000]

Get ready for it to hit PayPal too


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[Tunaman]

Get ready for it to hit PayPal too


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Yes. All sellers and not just one item either...all of your sales combined over 600 will get reported. Charge accordingly. And stop voting Democrat if you do.

[scottieb]

Man, that is steep!

Time to revert to old school money orders or cashiers checks. Do your business on the message boards or FB and privately handle everything.

[dstud2000]

I wonder if that will hit Craigslist


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[Tunaman]

I wonder if that will hit Craigslist


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Probably so. They are trying anything they can to steal more money from us taxpayers so they can give it to illegals and pay for the new wall around Bidens delaware house.

[BigEvil]

This will be the end of Ebay and paypal

Support the parallel economy.

[knownothingmags]

This will be the end of Ebay and paypal

Support the parallel economy.

good,
time to buy puts on paypal

[maniacmechanic]

I remember forums where you could BST with folks ya trusted , didn't need PP or ebay
The only way around it is F & F and cash

[captian pinky]

to be clear it is more than just ebay. The banks are also required to report deposits over 600 if i am not mistaken.
This will also happen to paypal and venmo for purchases. I expect it will happen to all electronic money transfers.

[rawbutter]

This isn't really new, although the threshold now is much lower than it used to be. You were always supposed to report sales like this on your taxes. If you've never done it before, you might have been breaking the law. Oops.

The eBay change makes it easier to do this, honestly. I used to keep track of all this on a spreadsheet, and sometimes I would forget stuff. It will be nice to have someone else keeping track of it.

The good news is that you only owe taxes on profit, not sales (even though all sales over $600 have to be reported). If you bought a marker a few years ago for $600 and then sold it for $500 this year, you won't owe taxes on that. If, however, you've been making your own parts to sell, or you're buying wholesale and then reselling to a store, that's different. You're making profit on that, which is income, and so it's taxable. Because it's income.

So, all you have to do is keep track of how much you paid for stuff. Once you plug in those numbers while doing your taxes, chances are you'll owe no additional taxes, or very little. I've made a few thousand dollars making SPAR valves over the last few years, for instance, and I paid less than $100 in taxes for all that once I deducted all my costs for raw materials and whatnot. Considering all the money I've made, that seems more than fair to me.

(By the way, if you're scared of giving eBay your social security number because someone might hack into their files and steal you information, you should really set up a credit freeze with the major credit reporting agencies. This is a little bit of a hassle. It takes some time to set it all up since you have to do it with each of the three big credit bureaus. But it is free, and once it's all set up you really have complete peace of mind. I did it a few years ago when there was that huge Experian hack, and I've never regretted it.)

[pimped mag 01]

This isn't really new, although the threshold now is much lower than it used to be. You were always supposed to report sales like this on your taxes. If you've never done it before, you might have been breaking the law. Oops.

The eBay change makes it easier to do this, honestly. I used to keep track of all this on a spreadsheet, and sometimes I would forget stuff. It will be nice to have someone else keeping track of it.

The good news is that you only owe taxes on profit, not sales (even though all sales over $600 have to be reported). If you bought a marker a few years ago for $600 and then sold it for $500 this year, you won't owe taxes on that. If, however, you've been making your own parts to sell, or you're buying wholesale and then reselling to a store, that's different. You're making profit on that, which is income, and so it's taxable. Because it's income.

So, all you have to do is keep track of how much you paid for stuff. Once you plug in those numbers while doing your taxes, chances are you'll owe no additional taxes, or very little. I've made a few thousand dollars making SPAR valves over the last few years, for instance, and I paid less than $100 in taxes for all that once I deducted all my costs for raw materials and whatnot. Considering all the money I've made, that seems more than fair to me.

(By the way, if you're scared of giving eBay your social security number because someone might hack into their files and steal you information, you should really set up a credit freeze with the major credit reporting agencies. This is a little bit of a hassle. It takes some time to set it all up since you have to do it with each of the three big credit bureaus. But it is free, and once it's all set up you really have complete peace of mind. I did it a few years ago when there was that huge Experian hack, and I've never regretted it.)

How is lowering the threshold from $20,000 to $600 a good thing? Truly spoken like a lifelong state employee. Also explain to me why you're paying tax on something that was already taxed once when it was new. Anyone else that uses eBay try private messaging the seller and see if you can do a cash sale outside of eBay to work around it.

Govern me harder daddy

[maniacmechanic]

Another instance of the Govt turnin the common man into a criminal
The IRS is the most feared of law enforcement agencys , they don't need warrants to shut down bank accounts , you are automatically Guilty , it's up to you to Prove your innocents

[Xyxyll]

How is lowering the threshold from $20,000 to $600 a good thing? Truly spoken like a lifelong state employee. Also explain to me why you're paying tax on something that was already taxed once when it was new. Anyone else that uses eBay try private messaging the seller and see if you can do a cash sale outside of eBay to work around it.

Govern me harder daddy

No one's paying more tax than they owe with this change. The tax rules are literally the same. It just requires you to keep better books, which is, let's be honest, extremely annoying for a hobby and frankly is targeting the wrong people. If the govt wants to collect more income taxes, they should audit bigger companies, not mow down the little guys.