What point do you count Ebay sales when its IRS time?

[billjustbill]

What point do you count Ebay sales when it's IRS time?

After going through the July garage sale, the heat was the real killer. I know that the IRS says you can have 2 garage sales a year and not report the money. Selling things is really a matter of buying something in better condition than you have, and selling the lesser quality to equal the new item and/or make a little for the expenses of going to the sales and newspaper ad, etc. I haven't sold on Ebay, but in this heat of "Prep Work, Sale Days, and Clean Up time", Ebay looks better and better.

At what dollar point do you feel you have to report Ebay's income at Tax Time for when Uncle Sam comes auditing, since there is certainly a 'Paper trail' ?

 

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[clovis97]

We ebay and flea market for a living, so we report everything.

 

[batcap]

There was a new law that came out over the last couple of years that spelled out just when eBay has to disclose your activity to the Federal government. The formula was "THIS MANY SALES" and "THIS MUCH $".
Although I capitalized everything else, the operative word above is "and". You have to meet both requirements. What is the count and amount? I've never gotten close enough to either mark to keep tab. Someone here knows and can fill in the blanks. If eBay ain't offering it up, neither am I.

 

[NJcigarman]

Bill I had a good thing going on eBay in 2010/11. I was pocketing an extra $1000 @ month. Then in January 2012 I received a 1099 from PayPal for $21,000. Talk about a shocker I just can't get this Governments hand out of my pocket. Needless to say I was selling volume and squeezing a small profit. But PayPal reports the entire transaction. For instance I was getting new radar detectors for $99 @ piece. Selling them for $125 with free shipping. So a $26 profit minus the shipping. The current formula is 200 sales AND $20,000 you will get a 1099.

 

[isabella1]

I just talk to a tax accountant last week. She said keep receipts. If its yard sales give a cash receipt and keep the carbon receipt for my records. Milage too... It's .56.5 miles you can claim. All expences too. I guess no difference then running a normal business. I was taxed for $25,000 last year. Ended up I made less the $12k profit.

 

[jerseyben]

Bill I had a good thing going on eBay in 2010/11. I was pocketing an extra $1000 @ month. Then in January 2012 I received a 1099 from PayPal for $21,000. Talk about a shocker I just can't get this Governments hand out of my pocket. Needless to say I was selling volume and squeezing a small profit. But PayPal reports the entire transaction. For instance I was getting new radar detectors for $99 @ piece. Selling them for $125 with free shipping. So a $26 profit minus the shipping. The current formula is 200 sales AND $20,000 you will get a 1099.

Give me a break...

If you earn the income you have to pay your taxes. Plain and simple.

 

[wingmaster]

Unless your one of the ultra rich, then you'll just put most of your money in an offshore account and not pay your fair share on the rest that you bank here.

Give me a break...

If you earn the income you have to pay your taxes. Plain and simple.

 

[Coldshuz]

Unless your one of the ultra rich, then you'll just put most of your money in an offshore account and not pay your fair share on the rest that you bank here.

Do you seriously believe that?

 

[billn1956]

yes i do, if you work out of the states and stay out for so long and leave the money in a off shore account or invest it threw a off shore bank.You never pay tax on it until you bring it home.

 

[JerseyGirl71]

Bill I had a good thing going on eBay in 2010/11. I was pocketing an extra $1000 @ month. Then in January 2012 I received a 1099 from PayPal for $21,000. Talk about a shocker I just can't get this Governments hand out of my pocket. Needless to say I was selling volume and squeezing a small profit. But PayPal reports the entire transaction. For instance I was getting new radar detectors for $99 @ piece. Selling them for $125 with free shipping. So a $26 profit minus the shipping. The current formula is 200 sales AND $20,000 you will get a 1099.

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I was doing group buys for craft items.
My personal profit was 6k but I had form stating my PP made $26k.
Royal PITA.
I had to get a program and list out my expenses...ie product bought, shipping, shipping materials....
Now I keep track of the 20k and then use my husbands PP account.

I plead the 5th....it worked for Lois Lerner.

Mk

 

[dieselram94]

I have wondered this myself. As far as taxes go it's a shame we even need to worry about taxes from a garage sale. On top of that most items the average guy Will. Sell at a garage sale were purchased new and sold for a fraction of new price. Therefore no gain and no taxes...

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[diggummup]

The 16th amendment should be nullified. While we are at it the entire US gov. should be overhauled. Many need to be held accountable and imprisoned, starting at the very top.

 

[Maburger]

Give me a break...

If you earn the income you have to pay your taxes. Plain and simple.

Post says Pay Pal reports the entire transaction. Only the profit should be classified as income. A storefront business doesn't claim the total sale $$ as profit because the math says differently.

My question is; who made the 200 sales and $20,000 "formula" PP or IRS?

 

[bush13st_beav3r]

Do you seriously believe that?

Watch Jesse Ventura on goldman Sachs and the government... The rich get away with 99% of their wrong doing... ...when one of the G.S. CEO's make 38 MILLION q year JUST in bonuses...(EACH, ceo mind you...not all together)....and the entire company and employees only had to pay 1 million n taxes....1 mil....when the total revenue of the company and employees as a whole is in the MULTI-BILLIPN $ range....that's just stupid... My father owns his own machine n fabrication shop, and he gets hit over the head on taxes...something fierce.. ....I'm not tryin to b an ahole...but, I'm just putting the point out there, rules don't apply to the rich, as they r the ones making them

-beav3r

 

[jerseyben]

Tax Tips for Online Auction Sellers

 

[Cojones]

Post says Pay Pal reports the entire transaction. Only the profit should be classified as income. A storefront business doesn't claim the total sale $$ as profit because the math says differently.

My question is; who made the 200 sales and $20,000 "formula" PP or IRS?

I believe it was the IRS.

Amazon also uses the same standard.

 

[wingmaster]

I call them like I see them, ever wonder what happened to the swiss bank account story? They was supposed to disclose who here had money in swiss bank accounts, never heard anymore about it as too many of are politician's have money over there and I'm not quite sure the people here would like it if they only knew. I can't believe everybody doesn't see the obvious and how many trust everything they see on the news or what the government says to be the truth the whole truth and nothing but the truth.

Do you seriously believe that?

 

[JerseyGirl71]

Post says Pay Pal reports the entire transaction. Only the profit should be classified as income. A storefront business doesn't claim the total sale $$ as profit because the math says differently.

My question is; who made the 200 sales and $20,000 "formula" PP or IRS?

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That little new law was in the 1,000 plus pages of Obamacare. Once it passed, we found out what was in it.
Yes....PP just totals up the entire thing. The burden of proof is on the account holder.

See....if I thought I was a business...I would have tracked and saved receipts from day one. It took me 2 months to compile everything to prove that I didn't actually earn that much.

MK

 

[dieselram94]

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That little new law was in the 1,000 plus pages of Obamacare. Once it passed, we found out what was in it.
Yes....PP just totals up the entire thing. The burden of proof is on the account holder.

See....if I thought I was a business...I would have tracked and saved receipts from day one. It took me 2 months to compile everything to prove that I didn't actually earn that much.

MK

This is why Pelosi and all the other jokers who passed Obamacare need to be thrown out of office...

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[trdhrdr007]

The law requiring Paypal to send 10-99's might have been in Obamacare. It was a horrible piece of legislation that most people don't even begin to understand. That doesn't change the fact that taxes were required to be paid on that income long before then.