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Forums10
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Most Online1,344 Apr 29th, 2024
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Joined: Jan 2002
Posts: 1,490 Likes: 82
Sidelock
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OP
Sidelock
Joined: Jan 2002
Posts: 1,490 Likes: 82 |
I have a personal account on Ebay and Paypal. I sell a few non gun items and once in a while I sell a personal case or two or some used items. Well now both paypal and Ebay are requesting my social security#. if I sell $600 or more in a year they will report that as income to the IRS. Does not matter that it is my personal items, they still plan to report it. Its all reported as income. Even though it is not all profit and some is at a loss just to broom it out, it still gets reported as full income. Also, with all the data breaches I am very cautious about giving out my ss willy nilly as I have had my identity stolen twice.
I will expect gun broker will be next at this request
John Boyd
John Boyd Quality Arms Inc Houston, TX 713-818-2971
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Joined: Mar 2002
Posts: 7,731 Likes: 489
Sidelock
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Sidelock
Joined: Mar 2002
Posts: 7,731 Likes: 489 |
As of Jan 1, 2022, the IRS requires eBay to provide you with a Form 1099-K if you receive $600 or more in sales during the 2022 tax year. Last year it was 200 transactions or $20,000.00. Never miss a chance to tax anyone who is making a effort to do anything other than wait for free. Sad times. You might be ab oe to deduct the cost of items sold if you can prove the cost. Yeah, big chance I know.
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Joined: Aug 2013
Posts: 666 Likes: 45
Sidelock
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Sidelock
Joined: Aug 2013
Posts: 666 Likes: 45 |
I got mad so I Googled it. At least they will take into account the basis. "No need to worry— you only pay taxes on profits. You won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 last year and then sold it on eBay today for $700, that $700 you made would generally not be subject to income tax." https://www.ebay.com/sellercenter/payments-and-fees/2022-changes-to-ebay-and-your-1099-keBay is no longer for small sellers. I used to love it, now it is largely just the same crap that is on Amazon.
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Joined: May 2022
Posts: 24 Likes: 10
Boxlock
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Boxlock
Joined: May 2022
Posts: 24 Likes: 10 |
I'll tax the street (If you try to sit, sit) I'll tax your seat (If you get too cold, cold) I'll tax the heat (If you take a walk, walk) I'll tax your feet...
Some things never change.
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2 members like this:
Mills, John Roberts |
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Joined: Jan 2002
Posts: 13,165 Likes: 1155
Sidelock
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Sidelock
Joined: Jan 2002
Posts: 13,165 Likes: 1155 |
Use Amazon and eBay when you can benefit from them. You owe them nothing, they owe you nothing. When they no longer can provide a service worthy of your time someone will take their place who can.
Changes in their policies are not worth getting mad about. When they no longer provide you a worthy service, move on.
May God bless America and those who defend her.
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3 members like this:
craigd, John Roberts, Entropy |
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Joined: Jan 2002
Posts: 1,490 Likes: 82
Sidelock
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OP
Sidelock
Joined: Jan 2002
Posts: 1,490 Likes: 82 |
Did not remember nor did I save the receipt of the used gun case i recently sold but purchase 10 years ago
I guess everybody saves all receipts and remembers their historic costs of everything they purchased
I will have to do better
John Boyd
John Boyd Quality Arms Inc Houston, TX 713-818-2971
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Joined: Mar 2002
Posts: 7,731 Likes: 489
Sidelock
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Sidelock
Joined: Mar 2002
Posts: 7,731 Likes: 489 |
John nobody does, that’s the rub. They ought to make a simple exception for those who are selling personal stuff. But the problem is dealers who try to run their business as just selling their personal stuff. Some have multiple ids trying to get around the old $20,000 limit. So the IRS over tightened the rules. I guess you could claim your real cost of goods but if audited you might have a problem. The IRS is not your friend.
About five years ago, I cleaned out my gun room and sold a lot of factory stocks, new in box recoil pads, stock blanks and gun stuff I would never get around to using. Raised about $7,000. And I think I paid 13% for the privilege, but overall was happy. Today I would make a lot less. Last time I looked they wanted 13% on shipping. Use to be that was not included in the sale price. Might be different now. The problem was, wise dealers would sell an item for .99 and charge $25.00 shipping when it cost a couple bucks. Buyers did not care if the valued the item for more than 25.99. EBay only got a percentage on the .99 not the total of $25.99 so they changed the rules. EBay, like the IRS is not your friend as well.
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Joined: Nov 2006
Posts: 3,437 Likes: 34
Sidelock
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Sidelock
Joined: Nov 2006
Posts: 3,437 Likes: 34 |
There is another approach that may work, depending on your marginal federal and state tax income brackets, and on whether you itemize deductions or take the standard deduction. Donate the items to an eligible charity (college shooting team, FFA, Boy Scouts, etc.) and take a non-cash charitable deduction for the current market value of the items. Up to $500 per donation, all you need is a donation receipt and some documentation of current fair market value (from eBay, auction sales, GunBroker sales, etc.). Over $500, you'll need all that plus a letter from the charity. Over $5000 in a single donation, you'll need a formal, professional appraisal of the market value. You can do the math, but in a high tax state like California it's easy to have a combined marginal rate well north of 40%, which means you net 40 cents on the dollar of whatever FMV you can establish. And you don't have to find a buyer for your stuff or pay fees to sell and ship the stuff. Another alternative, if you still want to sell stuff, is to split up the sales among different venues (eBay, GunBroker, this site, Auction Arms, local auctions, gun shop consignments, etc.), and keep the gross receipts for each venue under $600 per year. And split your sales between 2022 and 2023. Lots of ways to work the system and still stay completely legal.
Disclaimer: I am neither a CPA nor a lawyer, but I am an Interdisciplinary Obfuscator, so please take this advice as a guideline and follow up with a trusted professional. This is off the top of my head, and tax rules are constantly changing.
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Joined: Oct 2010
Posts: 969 Likes: 38
Sidelock
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Sidelock
Joined: Oct 2010
Posts: 969 Likes: 38 |
Wonder how these rules will apply to international sales, between let us say Hong Kong suppliers and US buyers.
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Joined: Jan 2002
Posts: 9,740 Likes: 97
Sidelock
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Sidelock
Joined: Jan 2002
Posts: 9,740 Likes: 97 |
the horror...the absolute horror...
keep it simple and keep it safe...
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