Selling more that $600 a year on eBay ??

Smack

Smack

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When you thought it just cant get any more insane !

Better keep your receipts of what you paid for stuff so you can show a loss, or pay federal taxes on anything over

community.ebay.com

A big change to federal tax reporting laws that will affect small-scale sellers

We wanted to share an update about a change to federal tax reporting legislation that will impact people who sell on any online marketplace, including eBay. Here’s what’s changed As of January 2022, the IRS will now require all annual online sales over $600 to be reported using Form 1099-K...
community.ebay.com community.ebay.com
 
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Yeah, I'm so far over that it does not matter. Not that I'm on ebay anymore but that applies to etsy as well. Ridiculous for casual sellers though. Pretty sure they snuck that in on one of the Covid relief bills. How nice of them.

So this and pre paying the child tax credit, gonna be some surprised folks in March.
 
Just wait until washington comes up with a value added tax where tax is added in every step of manufacturing and supply chain.
 
you can sure bet that if i was doing sales from home on the internet that required getting taxed, my cable bill, my cell phone bill, my electrical bill, my mortgage, and food would suddenly become expenses. all of those things were needed to keep my place of business running. They might not normally be considered expenses for working outside the home, but when it becomes cheaper to get a good tax lawyer than to pay the taxes... that's what people do.
 
I would be very mad if I paid my taxes. You still legally owe nothing but irs just wants to make it even harder for you to notice that
 
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DrScaryGuy said:
you can sure bet that if i was doing sales from home on the internet that required getting taxed, my cable bill, my cell phone bill, my electrical bill, my mortgage, and food would suddenly become expenses. all of those things were needed to keep my place of business running. They might not normally be considered expenses for working outside the home, but when it becomes cheaper to get a good tax lawyer than to pay the taxes... that's what people do.
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Dont forget the square footage of the place/room you conduct business and keep records can be deducted.
 
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All this will accomplish is that the only sellers on eBay will be Chinese exporters, or larger companies able to do all the paperwork
I mean that is about all you see there now, but what a way to add another screwing to the little guy based in the US.

They want everything sold and delivered to you by Amazon, or by mail direct from China, stay home don't drive to the store, one delivery man can do your whole neighborhood in a day.

Your food orders are now being delivered, your meds, your clothes, pet food, the list is endless and with that they want more people working from home, small mom pop shops are going to completely disappear, soon you will be shamed for driving anywhere, get a bike you deplorable.
 
I’m amused that
draco88 said:
Dont forget the square footage of the place/room you conduct business and keep records can be deducted.
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Only do this if the location is rented or outside your primary residence.

cold1 said:
Let's make sure that the rich are paying their fair share!!!
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This old chestnut is Fudd worthy. Think about it.
It also happens to be largely untrue, the wealthy pay tons of taxes, when they don’t it makes big news. Friend of mine is cutting a check for more than $100mm next week to Uncle Sam.

More generally, I was unaware that ebay collected SSN’s, I certainly don’t remember ever giving them one.

For legal mumbo-jumbo, if your selling as a business then your costs are deductible, if you’re selling as a hobby then your expenses are deductible only to the extent of your revenue. This has long been the case, many people apparently have been failing to report this income. I see lots of folks dumpster diving at storage units or stealing from Goodwill dropoff locations to get stuff to sell, it’s a business for them.

The government is going to keep looking for these loopholes. Another that they’ll get soon is cash tips to bartenders and wait staff.
 
Smack said:
Your food orders are now being delivered, your meds, your clothes, pet food, the list is endless and with that they want more people working from home, small mom pop shops are going to completely disappear, soon you will be shamed for driving anywhere, get a bike you deplorable.
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my nearest any kind of store is a dollar general 4mi away. you pass 2 gas stations on the way to the next store (another dollar general) 5 miles past. I wouldn't trust any food that came out of one of the gas stations, and i trusted food from the other gas station once. ONCE.
 
JimB said:
More generally, I was unaware that ebay collected SSN’s, I certainly don’t remember ever giving them one.

For legal mumbo-jumbo, if your selling as a business then your costs are deductible, if you’re selling as a hobby then your expenses are deductible only to the extent of your revenue. This has long been the case, many people apparently have been failing to report this income. I see lots of folks dumpster diving at storage units or stealing from Goodwill dropoff locations to get stuff to sell, it’s a business for them.

The government is going to keep looking for these loopholes. Another that they’ll get soon is cash tips to bartenders and wait staff.
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you don't think they need a SSN to know who you are, do you?
you have to give your name, your address, your phone number, and access to some kind of account for payment. that's more than enough ID for the ~90,000 new IRS agents to figure out who you are. If they have any question, they'll pull your phone gps data, because google and apple will probably gladly hand it all over, and pair it with all the records they keep on your internet browsing.
 
JimB said:
Only do this if the location is rented or outside your primary residence.
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It does not need to be rented nor outside the home as in garage/add on/outbuilding/etc. The deducted space can be an interior room of the home. If you mean outside the primary residence as in an interior room or portion thereof used for nothing else, then yes.

The only qualifications for deducting a percentage of the home for home office space is it be a space within the overall home that is used regularly and exclusively for business related purposes.
 
draco88 said:
It does not need to be rented nor outside the home as in garage/add on/outbuilding/etc. The deducted space can be an interior room of the home. If you mean outside the primary residence as in an interior room or portion thereof used for nothing else, then yes.

The only qualifications for deducting a percentage of the home for home office space is it be a space within the overall home that is used regularly and exclusively for business related purposes.
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sheesh. you mean we could have been deducting my wife's home office these last 2 years? she worked from home in NC, for her dad's company, registered in FL, managing a warehouse in NV. The only part of that room that isn't for her work is my gun safe in the corner, but that safe acts as a really tall table for all the network gear our cable/wifi needs
 
DrScaryGuy said:
sheesh. you mean we could have been deducting my wife's home office these last 2 years? she worked from home in NC, for her dad's company, registered in FL, managing a warehouse in NV. The only part of that room that isn't for her work is my gun safe in the corner, but that safe acts as a really tall table for all the network gear our cable/wifi needs
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Im not a tax man, I am only repeating to you what my tax man told me. We do deduct for home business, but the business is wifey owned, registered at our address. It is not a business owned by another individual and registered at a different address.
Yours is not an apples to apples comparison to us and specifics q&a's should be directed towards your tax man.
 
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draco88 said:
It does not need to be rented nor outside the home as in garage/add on/outbuilding/etc. The deducted space can be an interior room of the home. If you mean outside the primary residence as in an interior room or portion thereof used for nothing else, then yes.

The only qualifications for deducting a percentage of the home for home office space is it be a space within the overall home that is used regularly and exclusively for business related purposes.
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Didn’t say that you can’t, said not to. I also mean the garage or any other related property.

The issue is fairly easy when you’re taking the deductions, even for allocated space in your home, just figure out basis and depreciation. Doing this does increase audit risk. The cost and complexity comes when you sell your home. That portion of your home that was used as a business, or deducted hobby expenses, is excluded from the gain on sale of a primary residence exclusion. So now you’re working on the basis for that room, the proceeds from the sale for that room, and the taxable gain for that room. In theory you do delay taxes and shift some ordinary income to capital gains if you have enough profit each year and your house doesn’t appreciate significantly. For most home businesses it’s rarely worth the risk and complexity for what might actually might be additional taxes.
 
I'm really starting to just think "nah" when it comes to lots of things and then when I think of the punishment I'm also just like "nah."
 
DrScaryGuy said:
you don't think they need a SSN to know who you are, do you?
you have to give your name, your address, your phone number, and access to some kind of account for payment. that's more than enough ID for the ~90,000 new IRS agents to figure out who you are. If they have any question, they'll pull your phone gps data, because google and apple will probably gladly hand it all over, and pair it with all the records they keep on your internet browsing.
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Agreed, they can get it from the linked bank account. I never linked a bank account, it’s been a long time.

I was once responsible for the credit for a bunch of customers for a fortune 500 company. Had a new customer fill out an application and leave SSN blank. My staff told him that it needed to be completed, he spent the better part of a day working up the organization to me. I looked him up and asked him to confirm that blah blah was his SSN, he was kinda dumbfounded. And this was 20+ years ago.
 
JimB said:
Didn’t say that you can’t, said not to. I also mean the garage or any other related property.

The issue is fairly easy when you’re taking the deductions, even for allocated space in your home, just figure out basis and depreciation. Doing this does increase audit risk. The cost and complexity comes when you sell your home. That portion of your home that was used as a business, or deducted hobby expenses, is excluded from the gain on sale of a primary residence exclusion. So now you’re working on the basis for that room, the proceeds from the sale for that room, and the taxable gain for that room. In theory you do delay taxes and shift some ordinary income to capital gains if you have enough profit each year and your house doesn’t appreciate significantly. For most home businesses it’s rarely worth the risk and complexity for what might actually might be additional taxes.
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You said "only do this if..." without any further qualification as to why or why not.
Clarity and knowledge are our friends here, especially when dealing with the .govs regulations. The things you mention could be a very real concern for some. Perhaps you could have qualified the original statement with some version of what you just said as a why not.
 
draco88 said:
You said "only do this if..." without any further qualification as to why or why not.
Clarity and knowledge are our friends here, especially when dealing with the .govs regulations. The things you mention could be a very real concern for some. Perhaps you could have qualified the original statement with some version of what you just said as a why not.
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Was making pineapple salsa.

edit: and now I’m eating it, awesome on a pulled pork taco!
 
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I don't recall giving ebay my ssn as that would have been a deal breaker.
 
DrScaryGuy said:
you can sure bet that if i was doing sales from home on the internet that required getting taxed, my cable bill, my cell phone bill, my electrical bill, my mortgage, and food would suddenly become expenses. all of those things were needed to keep my place of business running. They might not normally be considered expenses for working outside the home, but when it becomes cheaper to get a good tax lawyer than to pay the taxes... that's what people do.
Click to expand...

draco88 said:
Dont forget the square footage of the place/room you conduct business and keep records can be deducted.
Click to expand...

Yes and yes. One of the benefits of having a business run out of the home. My wife does the taxes and is not quite as "creative" as I am. But we expense a lot of stuff. As a buddy told me, find business uses for stuff you can also use.

Smack said:
All this will accomplish is that the only sellers on eBay will be Chinese exporters, or larger companies able to do all the paperwork
I mean that is about all you see there now, but what a way to add another screwing to the little guy based in the US.

They want everything sold and delivered to you by Amazon, or by mail direct from China, stay home don't drive to the store, one delivery man can do your whole neighborhood in a day.

Your food orders are now being delivered, your meds, your clothes, pet food, the list is endless and with that they want more people working from home, small mom pop shops are going to completely disappear, soon you will be shamed for driving anywhere, get a bike you deplorable.
Click to expand...

Ebay takes care of state sales tax. It's not much of a burden on the seller. Just a PIA. You incorporate the income into your taxes. Don't get me wrong, the threshold is dumb and way too low. I do a DBA (Doing business as) and file my income, expenses, etc along with my regular job income.
 
chiefjason said:
Yes and yes. One of the benefits of having a business run out of the home. My wife does the taxes and is not quite as "creative" as I am. But we expense a lot of stuff. As a buddy told me, find business uses for stuff you can also use.



Ebay takes care of state sales tax. It's not much of a burden on the seller. Just a PIA. You incorporate the income into your taxes. Don't get me wrong, the threshold is dumb and way too low. I do a DBA (Doing business as) and file my income, expenses, etc along with my regular job income.
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I'm an idiot but it looked like to me deductions didn't do anything on a 1099 as far as the social security scam and they still want the entire how dare you beself employed penalty.
 
chiefjason said:
Don't get me wrong, the threshold is dumb and way too low. I do a DBA (Doing business as) and file my income, expenses, etc along with my regular job income.
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I'm pretty sure the "we tax anything over $600" rule has been in effect since I did my first taxes at 14, nearly 30 years ago. I remember not entering certain drawings because i didn't think the tax on a prize over $600 would be worth the prize itself.
In 30 years, the value of $600 has gone WAY down. Federal minimum wage back then was 4.25, and is 7.25 now, so if we're being consistent, they should adjust that $600 up to over $1,000
 
DrScaryGuy said:
I'm pretty sure the "we tax anything over $600" rule has been in effect since I did my first taxes at 14, nearly 30 years ago. I remember not entering certain drawings because i didn't think the tax on a prize over $600 would be worth the prize itself.
In 30 years, the value of $600 has gone WAY down. Federal minimum wage back then was 4.25, and is 7.25 now, so if we're being consistent, they should adjust that $600 up to over $1,000
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It ain't no accident. Give big tax packages to giant companies and go after small shops to push them out.
 
Notacop said:
I'm an idiot but it looked like to me deductions didn't do anything on a 1099 as far as the social security scam and they still want the entire how dare you beself employed penalty.
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I run a 30% ish profit margin on my shop. No way I could do that if the Gov took 30% of my gross. I'm pretty meticulous on how I pay for stuff and keeping records or getting access to digital payments so I can use them for deductions. The deductions are not great IMO. But I generally cut my tax bill in half or better between initial payment based on gross and adjusted payment with deductions.


DrScaryGuy said:
I'm pretty sure the "we tax anything over $600" rule has been in effect since I did my first taxes at 14, nearly 30 years ago. I remember not entering certain drawings because i didn't think the tax on a prize over $600 would be worth the prize itself.
In 30 years, the value of $600 has gone WAY down. Federal minimum wage back then was 4.25, and is 7.25 now, so if we're being consistent, they should adjust that $600 up to over $1,000
Click to expand...

I remember that. But for ebay/etsy/etc the threshold was 100+ sales and $20k in sales. Now for the technicality. That was the threshold for those companies to issue a 1099 to the IRS and seller. So lots of folks took that to mean you didn't have to report under $20k in sales. Technically, that's wrong. But in reality, the IRS would never know unless they dug into your personal accounts. Now they will 1099 at $600.
 
chiefjason said:
I run a 30% ish profit margin on my shop. No way I could do that if the Gov took 30% of my gross. I'm pretty meticulous on how I pay for stuff and keeping records or getting access to digital payments so I can use them for deductions. The deductions are not great IMO. But I generally cut my tax bill in half or better between initial payment based on gross and adjusted payment with deductions.




I remember that. But for ebay/etsy/etc the threshold was 100+ sales and $20k in sales. Now for the technicality. That was the threshold for those companies to issue a 1099 to the IRS and seller. So lots of folks took that to mean you didn't have to report under $20k in sales. Technically, that's wrong. But in reality, the IRS would never know unless they dug into your personal accounts. Now they will 1099 at $600.
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I'm just a no step snek retard not paying my taxes. My filings are a mess and I have no idea what I'm doing. It sure looked like they wanted to stomp me to death by ignoring deductions on ss
 
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12151791 said:
Just wait until washington comes up with a value added tax where tax is added in every step of manufacturing and supply chain.
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It already is, it’s just ALL past on to the consumer. Jus sayin…
 
I told my brother about this cause he sells a lot on eBay. He did a little research and what he found is that you will only need to pay if you are selling for a profit. So for example: if you bought a bike for a $1000 dollars and two years later you sell it for $700 you would not need to do a 1099 and be subject to taxes.
if you make your own holsters and sell for a profit and make more the $600 in a year you would be subject to taxes. Sorry @chiefjason....
 
Amps 13 said:
I told my brother about this cause he sells a lot on eBay. He did a little research and what he found is that you will only need to pay if you are selling for a profit. So for example: if you bought a bike for a $1000 dollars and two years later you sell it for $700 you would not need to do a 1099 and be subject to taxes.
if you make your own holsters and sell for a profit and make more the $600 in a year you would be subject to taxes. Sorry @chiefjason....
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That's still extra bullshit you have to explain.

screw govco - It's all nonsense, and if it's not theft, it's a violation of the 4A. The amount of people making excuses for them in this thread is nauseating.
..well only if..

it's only when...

I used to...

...have you not yet realized it never ends there?

Btw, get your shot before you go into the office. If you don't get the shot you can't go to work. If you can't go to work you can't pay for food. If you can't pay for food your kids starve.

But hey, it's just $600, and only if you make a profit.
 
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IrishCannon said:
That's still extra bullshit you have to explain.

screw govco - It's all nonsense, and if it's not theft, it's a violation of the 4A. The amount of people making excuses for them in this thread is nauseating.
..well only if..

it's only when...

I used to...

...have you not yet realized it never ends there?

Btw, get your shot before you go into the office. If you don't get the shot you can't go to work. If you can't go to work you can't pay for food. If you can't pay for food your kids starve.

But hey, it's just $600, and only if you make a profit.
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I never said in my post it wasn’t BS and that I was ok with it. I was just trying to add some more clarity to it. Don’t shoot the messenger shoot the ones who came up with the BS in the first place. I can’t have your back if you aiming at me instead of the ones who passed this.
 
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