Selling more that $600 a year on eBay ??

There are other places to sell stuff online. Between the Ebay fees, charging sales taxes for interstate transactions, splitting off from Paypal which also charged exorbitantly, I just quit their BS all-together. FWIW, I started selling on Ebay in 1999 and I stopped in 2019 after selling over $100K worth of merchandise in 20 or so years.....
 
Notacop said:
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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Yeah, that first payment number that pops up on the taxes will scare you good. First year I was pissed! Basically, before deductions the Feds wanted 100% of my profit. Yeah, no. Deductions brought it down to being more manageable. Not going to claim to be happy about it though.

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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I blew past that years ago, even at the $20K mark. Don't worry about me. Once I crossed that threshold I just mashed the gas and went. The best way to offset that tax burden is just to make more money.
 
chiefjason said:
Yeah, that first payment number that pops up on the taxes will scare you good. First year I was pissed! Basically, before deductions the Feds wanted 100% of my profit. Yeah, no. Deductions brought it down to being more manageable. Not going to claim to be happy about it though.



I blew past that years ago, even at the $20K mark. Don't worry about me. Once I crossed that threshold I just mashed the gas and went. The best way to offset that tax burden is just to make more money.
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Well I'm sure I got cheated but I did plenty of cheating too
 
Amps 13 said:
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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I'm by no means upset at you, but extremely frustrated when you (generalizing) bring things like this up, and someone (whether it's a friend, a colleague, or whatever) just has to chime in with "Welllll akkkchuallyyyyy..." and give some excuse and why it's *not that bad*. - They're always the same people, two years down the road, that say, "How did it get this bad?"
 
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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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What your brother failed to realize is that if he purchased a bike for $1000 dollars a few years ago, and then sold it for $700 on eBay, he would get a 1099-k form from them at the end of the year with the $700 dollar sale, he would then have to dig up the receipt of the bike he bought a few years ago, and then show the loss so as to not have to pay taxes on the the sale of the bike, ask your brother it he was to sell 10 things over the course of a year on eBay, gunbroker, Esty, and had to show purchase prices on every item that was listed as a sale for 2022 from those sites since they would send him sales records with the 1099-k if he would have his tax guy do the taxes for him and at what cost, and would the tax guy file the extra form at no cost, or does your brother have extra time and years of boxed receipts with everything he bought for personal use in them.

How about the $300 dollar loss on the bike he cant claim that because it was personal use, but at the same time if he rode that bike a few years and sold it for $300 more than he paid now its profit, so you see loss wont count from personal use, but profit on the personal use is taxable per this new tax the rich BS
 
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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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Here is what I expect to happen, you can believe it or not, but think about it.

Assuming that they have your SSN, eBay will be creating the 1099‘s and sending them to you and the IRS, you don’t create your own 1099. If they don’t have your SSN I don’t think that they can complete a 1099 which means that they probably aren’t reporting to the IRS and all this is just noise; maybe they’ll send you an annual summary, who knows. Lets assume that they have your SSN somehow.

eBay has no idea what your basis (cost) was for your bike. They’ll send a 1099 for the gross amount of your sale since that’s the only info they have.

The IRS computer will attempt to match that 1099 to your tax return, if it doesn’t show up you’ll get a letter, bill, audit notice, or something else mildly unpleasant.

Most likely you’ll put the amount from the 1099 on your return as gross income, subtract your basis and sales cost, and report the greater of the net gain or $0 as taxable income.

So, your brother is right about only paying tax on profit, but the 1099 will be for gross sales and he’ll have to report the gross sales and then be able to support his costs in order to prevent the IRS from assuming that it’s all taxable income.
 
JimB said:
Here is what I expect to happen, you can believe it or not, but think about it.

Assuming that they have your SSN, eBay will be creating the 1099‘s and sending them to you and the IRS, you don’t create your own 1099. If they don’t have your SSN I don’t think that they can complete a 1099 which means that they probably aren’t reporting to the IRS and all this is just noise; maybe they’ll send you an annual summary, who knows. Lets assume that they have your SSN somehow.

eBay has no idea what your basis (cost) was for your bike. They’ll send a 1099 for the gross amount of your sale since that’s the only info they have.

The IRS computer will attempt to match that 1099 to your tax return, if it doesn’t show up you’ll get a letter, bill, audit notice, or something else mildly unpleasant.

Most likely you’ll put the amount from the 1099 on your return as gross income, subtract your basis and sales cost, and report the greater of the net gain or $0 as taxable income.

So, your brother is right about only paying tax on profit, but the 1099 will be for gross sales and he’ll have to report the gross sales and then be able to support his costs in order to prevent the IRS from assuming that it’s all taxable income.
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Prove to me you don't owe me money
 
Forking taxes... I work one 8hr day every week just to pay the "dole" as it works out each year.

Then every single thing I wish to spend the remainder on from milk to property is also taxed.

But somehow the government needs to make more...

Our government is the only business in history to remain afloat while never coming close to making a profit...
 
Went down the rabbit hole:

Federal income tax
State income tax
Social security tax
Property tax
Wealth tax
Excise (gas) tax
Vehicle tax
Capital gain tax
Estate and inheritance tax
Gift tax
Value added tax
Payroll tax
Gross receipt tax
Tangible personal property tax

I probably missed a few as well. The average American,however that is defined, spends 44% of what they make in taxes totaling to over 500k in their lifetime (some more,some less). Question is when have we, as a citizenry, had enough? The first revolution was fought over taxation without representation. The next one will be over taxation because of the representation.
 
Trevillian said:
Forking taxes... I work one 8hr day every week just to pay the "dole" as it works out each year.

Then every single thing I wish to spend the remainder on from milk to property is also taxed.

But somehow the government needs to make more...

Our government is the only business in history to remain afloat while never coming close to making a profit...
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yeah, we're at about 25% of our money going to ss/medicare, fed/state income, and sales taxes.
and property tax takes another 3% or so...
Gasoline is another big necessary expense, and that seems to vary 20-30% tax...
 
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