For those of you wondering on the significance of the change... Just incorporate if you flip coins. Seriously, there's zero reason to not at this point.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
I think the point being missed is how our government just changed the rules mid year last year and made it retroactive to January 1st.
I only know this because I researched it. PayPal and Ebay totally dropped the ball by not notifying it's sellers that this change would be implemented at some point in the future so affected sellers could plan accordingly.
Instead they are blindsiding sellers with notifications after they have already passed the point of no return.
Changing the rules after the game has started is not right and Ebay will pay the price as most smaller sellers will just stop doing business with them.
Also, this ongoing debate of paying your taxes is rubbish since our country was founded on fighting the British over unfair taxes!🇺🇸🇺🇸🇺🇸
@DelawareDoons said:
Man, there is going to be straight carnage next year after some people realize they're gonna get smacked with multi thousand dollar tax bills. Ugh.
So true. Think about the young Moms selling bows and smocked dresses on Etsy to offset the cost of putting kids in similar outfits. Photographers upgrading camera lenses…. Lots of people. Early 2023 when 2022 reports will push a lot of small time people away from selling on eBay and Etsy. Not worth the headache.
Why should everyone else subsidize them? If all the cheaters would pay up, the government wouldn’t need to discuss raising taxes as much even to cover its bloated spending.
Thank you for the laugh! 😂🤣
Ok. Fair point. At least it would bring down the national debt some. 😂
Nope. The fat government piggies will just spend it and not use it to pay down the debt. I think you have been brainwashed!🤣😂
@WQuarterFreddie said:
I think the point being missed is how our government just changed the rules mid year last year and made it retroactive to January 1st.
I only know this because I researched it. PayPal and Ebay totally dropped the ball by not notifying it's sellers that this change would be implemented at some point in the future so affected sellers could plan accordingly.
Instead they are blindsiding sellers with notifications after they have already passed the point of no return.
Changing the rules after the game has started is not right and Ebay will pay the price as most smaller sellers will just stop doing business with them.
Also, this ongoing debate of paying your taxes is rubbish since our country was founded on fighting the British over unfair taxes!🇺🇸🇺🇸🇺🇸
It is not retroactive. Begins next Jan 1st
Some individual states like Maryland sneakily lowered the state tax reporting tax thresholds to $600 last year. Maryland passed the law in June 2020 and made it retroactive to January 2020.
As someone who pays all their taxes, I would like the government to crack down in the evaders. I'd especially like them to crack down on sales tax cheats at coin shows.
I strongly suggest before you buy a coin to be upfront and mention this to all dealers. Do you walk away upset that sales tax was not added to your total or just walk away hoping they are paying SLT’s?
Oh man....don't try and debate him....you are headed down a rabbit hole my friend! Just move along and save yourself the time and aggravation.
This public service announcement was brought to you by your friends on the PCGS forum!🤣😂
@WQuarterFreddie said:
I think the point being missed is how our government just changed the rules mid year last year and made it retroactive to January 1st.
I only know this because I researched it. PayPal and Ebay totally dropped the ball by not notifying it's sellers that this change would be implemented at some point in the future so affected sellers could plan accordingly.
Instead they are blindsiding sellers with notifications after they have already passed the point of no return.
Changing the rules after the game has started is not right and Ebay will pay the price as most smaller sellers will just stop doing business with them.
Also, this ongoing debate of paying your taxes is rubbish since our country was founded on fighting the British over unfair taxes!🇺🇸🇺🇸🇺🇸
It is not retroactive. Begins next Jan 1st
Some individual states like Maryland sneakily lowered the state tax reporting tax thresholds to $600 last year. Maryland passed the law in June 2020 and made it retroactive to January 2020.
Really? I live in MD, but did not receive a 1099
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
I am done selling anything anyway and was just tying to keep up with everything they are doing. If there is a 2ay politicians can screw everybody they will find it and still keep on linen there own pockets.
@OPA said:
Will PCGS be required to issue 1099 eventually for transactions on their BST board? And how are they exempt?
They aren't taking payments or issuing payments so they wouldn't be responsible. No more than an old fashioned classified ad or craigslist listing.
This is how GC gets around it by my understanding. They don't process payments, a third party does, and sends them the money. GC just passes you your cut.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
As someone who pays all their taxes, I would like the government to crack down in the evaders. I'd especially like them to crack down on sales tax cheats at coin shows.
I strongly suggest before you buy a coin to be upfront and mention this to all dealers. Do you walk away upset that sales tax was not added to your total or just walk away hoping they are paying SLT’s?
He's coming from the perspective of a dealer collecting sales tax in their B&M shop. If physical shops are legally required to collect sales tax in a particular jurisdiction, then dealers at coin shows are as well. The point being that dealers following the law are at a disadvantage to those that do not. I'm not sure anyone actually wants to pay sales tax as a customer.
No...if you sell an item online and accept payment electronically the transaction is handled by a third party processor. Your bank is where you chose to have the payment deposited by this third party.
If you sell on Amazon then Amazon will send you the 1099-K, sell on Ebay then Ebay does it, sell on BST then if you accept electronic payment then Paypal or whatever processor collects that payment does it.
@DelawareDoons said:
Man, there is going to be straight carnage next year after some people realize they're gonna get smacked with multi thousand dollar tax bills. Ugh.
Well, anyone getting hit with a thousand dollar tax bill has probably been evading taxes for years
$5000 at 21% Fed and 6% is over $1000. If you can prove a cost basis greater than loss on personal items no tax. If you cant prove cost then IRS can set it for you. Then again the IRS assumes $0 cost basis off the bat when they have reported numbers sent without matching declaration and many individuals with $5000 in sales will just pay it not knowing better and just avoiding selling on eBay/Etsy going forward.
$5000 is only slightly more than $400 a month.. People getting hit with a $1000 tax bill does not imply evading taxes for years.
Call it whatever you want. If this new policy affects what you pay to the IRS and your gross income is unchanged, it is because you were previously cheating on your taxes.
@Che_Grapes said:
If you’re selling used personal items you do not have to pay earned income in that
Wrong.
@ cameonut2011. You just dont get it. Sold personal items at a cost lower is not taxable. A $1000 iphone sold on Ebay 3 years later for $800 is not $800 in income and obviously not cheating on taxes.
There is no tax liability because the item depreciated in value. If the old iPhone became a collectible and you sold it for $1300 (after fees and costs incurred in selling it) and paid $1000, you have $300 in capital gains. No one suggested you pay taxes on the full acquisition cost. This is obviously subtracted and is not considered income. Your statement that profits from the sale of personal property are non taxable is not correct.
As someone who pays all their taxes, I would like the government to crack down in the evaders. I'd especially like them to crack down on sales tax cheats at coin shows.
I strongly suggest before you buy a coin to be upfront and mention this to all dealers. Do you walk away upset that sales tax was not added to your total or just walk away hoping they are paying SLT’s?
I'm exempt as a reseller. But when I hand paperwork to dealers, some of them don't even known what to do with which means they are not paying sales tax or they'd be thrilled to have it. And yes, I walk away mad that they didn't add sales tax because that means that my prices are 8% higher (NY) than theirs because I am charging the REQUIRED sales tax.
As someone who pays all their taxes, I would like the government to crack down in the evaders. I'd especially like them to crack down on sales tax cheats at coin shows.
I strongly suggest before you buy a coin to be upfront and mention this to all dealers. Do you walk away upset that sales tax was not added to your total or just walk away hoping they are paying SLT’s?
Oh man....don't try and debate him....you are headed down a rabbit hole my friend! Just move along and save yourself the time and aggravation.
This public service announcement was brought to you by your friends on the PCGS forum!🤣😂
Your ignore is broken again.
He wasn't debating me but carrying on a civil discussion. The only rabbit is in your hole.
As someone who pays all their taxes, I would like the government to crack down in the evaders. I'd especially like them to crack down on sales tax cheats at coin shows.
I strongly suggest before you buy a coin to be upfront and mention this to all dealers. Do you walk away upset that sales tax was not added to your total or just walk away hoping they are paying SLT’s?
He's coming from the perspective of a dealer collecting sales tax in their B&M shop. If physical shops are legally required to collect sales tax in a particular jurisdiction, then dealers at coin shows are as well. The point being that dealers following the law are at a disadvantage to those that do not. I'm not sure anyone actually wants to pay sales tax as a customer.
@jessewvu said:
Get a good accountant and keep good records, makes life very easy.
It does if you know you need both -- and can afford an accountant (probably not applicable to most on this board but many people nonetheless). The big part being that people may have operated under the older rules and did not think ahead to a future time when they might sell something and be placed under these newer rules. The IRS may be understanding or they may not. In either case it is increased hassle.
I'm glad that I've been keeping track of receipts over the last few years. Eventually I'll sell my collection and I'll have a reasonable basis for it. Maybe by then the unreasonable 28% capital gains on coins will be reduced.
As someone who pays all their taxes, I would like the government to crack down in the evaders. I'd especially like them to crack down on sales tax cheats at coin shows.
I strongly suggest before you buy a coin to be upfront and mention this to all dealers. Do you walk away upset that sales tax was not added to your total or just walk away hoping they are paying SLT’s?
I'm exempt as a reseller. But when I hand paperwork to dealers, some of them don't even known what to do with which means they are not paying sales tax or they'd be thrilled to have it. And yes, I walk away mad that they didn't add sales tax because that means that my prices are 8% higher (NY) than theirs because I am charging the REQUIRED sales tax.
I am a small time eBay seller with mostly used stuff that my family has accumulated over the years. Kids run through sporting goods, clothing, books, etc. really quickly! Some coins here and there but nothing big. I do think the 600.00 is a bit low since prices of a lot of stuff have gone up...heck selling 2 pairs of lightly used and outgrown ski pants for 30% of what we bought them for still would take up 12% of the 600.00!
Yeah I understand to keep good records but that can be a lot of hassle and I don't know the cost basis of most of the stuff and certainly don't have the receipts. Hopefully eBay will provide some sort of report that will summarize the sales and allow for the input of an estimated cost to make it easier! I guess my top seller rating will have to go
@DelawareDoons said:
Man, there is going to be straight carnage next year after some people realize they're gonna get smacked with multi thousand dollar tax bills. Ugh.
Well, anyone getting hit with a thousand dollar tax bill has probably been evading taxes for years
$5000 at 21% Fed and 6% is over $1000. If you can prove a cost basis greater than loss on personal items no tax. If you cant prove cost then IRS can set it for you. Then again the IRS assumes $0 cost basis off the bat when they have reported numbers sent without matching declaration and many individuals with $5000 in sales will just pay it not knowing better and just avoiding selling on eBay/Etsy going forward.
$5000 is only slightly more than $400 a month.. People getting hit with a $1000 tax bill does not imply evading taxes for years.
Call it whatever you want. If this new policy affects what you pay to the IRS and your gross income is unchanged, it is because you were previously cheating on your taxes.
@Che_Grapes said:
If you’re selling used personal items you do not have to pay earned income in that
Wrong.
@ cameonut2011. You just dont get it. Sold personal items at a cost lower is not taxable. A $1000 iphone sold on Ebay 3 years later for $800 is not $800 in income and obviously not cheating on taxes.
There is no tax liability because the item depreciated in value. If the old iPhone became a collectible and you sold it for $1300 (after fees and costs incurred in selling it) and paid $1000, you have $300 in capital gains. No one suggested you pay taxes on the full acquisition cost. This is obviously subtracted and is not considered income. Your statement that profits from the sale of personal property are non taxable is not correct.
I fully understand taxes and have so 27 years and not needing the explanation.
I never suggested paying taxes on full acquisition cost. Gave the example that illustrates people will receive 1099k’s not knowing needs to be reported. IRS catches it, assigns zero cost basis, and sends tax bill. Many people not knowing why they get the tax bill just pay it or they report the 1099k and match up with IRS, but later cannot prove a cost basis to show a profit or loss as with an used iphone sold at a lower price than acquired.
Again your comment that I suggested profits from sale of personal profit is not a claim that was made either
A poster wrote: “ If you’re selling used personal items you do not have to pay earned income in that.” I wrote that this is incorrect which you seem to disagree with. The post I quoted is demonstrably wrong. That is fact. And contrary to the posts in this thread there are procedures to establish acquisition value in the absence of a receipt. A thread discussing the many nuances of tax law is well outside the scope of this thread and this forum. When it doubt, contact an accountant.
I tend to feel sympathy for the ebay sellers trying to make a part-time business of it; quite some hoops of records, accounting, and tax forms to jump.
I feel less sympathetic for those who don't keep track of costs and profit, and seem outraged that they should have to...
I truly hope that the US Gov't will rarely if ever hassle people who make a few thousand a year on ebay sales. I also hope the US Gov't will generally make people pay their fair taxes.
100th pint of blood donated 7/19/2022 . Transactions with WilliamF, Relaxn, LukeMarshal, jclovescoins, braddick, JWP, Weather11am, Fairlaneman, Dscoins, lordmarcovan, Collectorcoins, SurfinxHI, JimW. God so loved the world that he gave his only begotten son, that who so believeth in him should not perish but have everlasting life.
It would be nice if they practiced what they preach -
But during Polis’ successful run for governor of Colorado in 2018, his calls for transparency faded. The dot-com tycoon turned investor broke with recent precedent and refused to disclose his returns, blaming his Republican opponent, who wasn’t disclosing his.
Polis may have had other reasons for denying requests to release the records.
Despite a net worth estimated to be in the hundreds of millions, Polis paid nothing in federal income taxes in 2013, 2014 and 2015. From 2010 to 2018, his overall rate was just 8.2% — less than half of the 19% paid by a worker making $45,000 in 2018.
Wisdom has been chasing you but, you've always been faster
@moursund said:
I tend to feel sympathy for the ebay sellers trying to make a part-time business of it; quite some hoops of records, accounting, and tax forms to jump.
I feel less sympathetic for those who don't keep track of costs and profit, and seem outraged that they should have to...
I truly hope that the US Gov't will rarely if ever hassle people who make a few thousand a year on ebay sales. I also hope the US Gov't will generally make people pay their fair taxes.
The folks people voted into office right now added additional squeeze in the $3B COVID Relief Act to those selling odds and ends. The current administration is trying to find very "creative" ways to fund their socialist ideologies. If you think it's bad now, just wait!
Correct me if I'm wrong. In accountant speak, Earned income is income which is subject to Social Security withholding ie a regular job or self employment income. Capital gains tax which is the type of income derived from sales of personal property or whatever which is held for X amount of time is not subject to Social Security withholding. Both are subject to Federal Income Tax but the rates are different with Capital gains being a lower rate.
@DelawareDoons said:
Man, there is going to be straight carnage next year after some people realize they're gonna get smacked with multi thousand dollar tax bills. Ugh.
Well, anyone getting hit with a thousand dollar tax bill has probably been evading taxes for years
$5000 at 21% Fed and 6% is over $1000. If you can prove a cost basis greater than loss on personal items no tax. If you cant prove cost then IRS can set it for you. Then again the IRS assumes $0 cost basis off the bat when they have reported numbers sent without matching declaration and many individuals with $5000 in sales will just pay it not knowing better and just avoiding selling on eBay/Etsy going forward.
$5000 is only slightly more than $400 a month.. People getting hit with a $1000 tax bill does not imply evading taxes for years.
Call it whatever you want. If this new policy affects what you pay to the IRS and your gross income is unchanged, it is because you were previously cheating on your taxes.
@Che_Grapes said:
If you’re selling used personal items you do not have to pay earned income in that
Wrong.
@ cameonut2011. You just dont get it. Sold personal items at a cost lower is not taxable. A $1000 iphone sold on Ebay 3 years later for $800 is not $800 in income and obviously not cheating on taxes.
There is no tax liability because the item depreciated in value. If the old iPhone became a collectible and you sold it for $1300 (after fees and costs incurred in selling it) and paid $1000, you have $300 in capital gains. No one suggested you pay taxes on the full acquisition cost. This is obviously subtracted and is not considered income. Your statement that profits from the sale of personal property are non taxable is not correct.
I fully understand taxes and have so 27 years and not needing the explanation.
I never suggested paying taxes on full acquisition cost. Gave the example that illustrates people will receive 1099k’s not knowing needs to be reported. IRS catches it, assigns zero cost basis, and sends tax bill. Many people not knowing why they get the tax bill just pay it or they report the 1099k and match up with IRS, but later cannot prove a cost basis to show a profit or loss as with an used iphone sold at a lower price than acquired.
Again your comment that I suggested profits from sale of personal profit is not a claim that was made either
A poster wrote: “ If you’re selling used personal items you do not have to pay earned income in that.” I wrote that this is incorrect which you seem to disagree with. The post I quoted is demonstrably wrong. That is fact. And contrary to the posts in this thread there are procedures to establish acquisition value in the absence of a receipt. A thread discussing the many nuances of tax law is well outside the scope of this thread and this forum. When it doubt, contact an accountant.
@moursund said:
I also hope the US Gov't will generally make people pay their fair taxes.
What you describe is what we (normal people) would hope would occur in a free and fair world.
Unfortunately, the problem (taxes, reporting, laws, etc...) is that politicians (most who have no clue), vote the way the money and lobbyist's want them to.
Lobbyist's, tax lawyers, accountants, etc. write the laws in our Tax Code that politicians blindly vote for.
Most of what is in the tax code is written so that rich people have to hire tax lawyers and accountants, in order for them to NOT pay their fair share of taxes. The Rich pay others to figure out the loopholes in the tax code and laws that was originally written by tax attorneys and accountants! This is why we hear stories of a secretary paying 15% of her pay towards taxes but Warren Buffett only paying a 5% effective tax rate. What they leave out is that the secretary only paid $1,500 in taxes but Warren Buffett payed Million$ in taxes. He would have paid Million$ more but had to hire tax attorneys and accountants to figure out all the tax loopholes he could exploit in the tax code.
This is why I seriously think we need to get to a flat tax or something similar.
Who was that politician running for president a few years back who promised we could figure out our taxes on a post card and send it in!
I'll bet tax attorneys and accountants are the lobbyist's who wrote these latest tax changes, allowing the IRS to go after small time eBay and Etsy sellers....hoping they would bring in more business for themselves in future years!
@DelawareDoons said:
Man, there is going to be straight carnage next year after some people realize they're gonna get smacked with multi thousand dollar tax bills. Ugh.
So true. Think about the young Moms selling bows and smocked dresses on Etsy to offset the cost of putting kids in similar outfits. Photographers upgrading camera lenses…. Lots of people. Early 2023 when 2022 reports will push a lot of small time people away from selling on eBay and Etsy. Not worth the headache.
Next month, I will be putting tons of stuff on Ebay. Easy $100k worth of limited edition shoes, electronics, knives, coins, and clothes. I'm done re-selling The gov't doesn't want us to make some extra $$$ and Ebay is taking too much
@amwldcoin said:
Correct me if I'm wrong. In accountant speak, Earned income is income which is subject to Social Security withholding ie a regular job or self employment income. Capital gains tax which is the type of income derived from sales of personal property or whatever which is held for X amount of time is not subject to Social Security withholding. Both are subject to Federal Income Tax but the rates are different with Capital gains being a lower rate.
>
Yes. Given the text and context of the post I was originally referring to, he was using the phrase to have a broader meaning to include any taxable income. If I misinterpreted his post, I’ll apologize to him. In terms of accounting terms, I agree with you. My point was that the sale of chattel isn’t exempt from income tax.
@jessewvu said:
Get a good accountant and keep good records, makes life very easy.
It does if you know you need both -- and can afford an accountant (probably not applicable to most on this board but many people nonetheless). The big part being that people may have operated under the older rules and did not think ahead to a future time when they might sell something and be placed under these newer rules. The IRS may be understanding or they may not. In either case it is increased hassle.
I'm glad that I've been keeping track of receipts over the last few years. Eventually I'll sell my collection and I'll have a reasonable basis for it. Maybe by then the unreasonable 28% capital gains on coins will be reduced.
I am a small time eBay seller with mostly used stuff that my family has accumulated over the years. Kids run through sporting goods, clothing, books, etc. really quickly! Some coins here and there but nothing big. I do think the 600.00 is a bit low since prices of a lot of stuff have gone up...heck selling 2 pairs of lightly used and outgrown ski pants for 30% of what we bought them for still would take up 12% of the 600.00!
Yeah I understand to keep good records but that can be a lot of hassle and I don't know the cost basis of most of the stuff and certainly don't have the receipts. Hopefully eBay will provide some sort of report that will summarize the sales and allow for the input of an estimated cost to make it easier! I guess my top seller rating will have to go
K
@cameonut2011 said:
You can also read the relevant IRS publications that are freely available to the public online which provide useful tax advice.
@DelawareDoons said:
Man, there is going to be straight carnage next year after some people realize they're gonna get smacked with multi thousand dollar tax bills. Ugh.
So true. Think about the young Moms selling bows and smocked dresses on Etsy to offset the cost of putting kids in similar outfits. Photographers upgrading camera lenses…. Lots of people. Early 2023 when 2022 reports will push a lot of small time people away from selling on eBay and Etsy. Not worth the headache.
Next month, I will be putting tons of stuff on Ebay. Easy $100k worth of limited edition shoes, electronics, knives, coins, and clothes. I'm done re-selling The gov't doesn't want us to make some extra $$$ and Ebay is taking too much
lmao. eBay takes 10% (ish) for which they provide tens of millions of eyeballs, payment processing, transaction insurance/guarantees. Anyone who thinks eBay is "taking too much" has never run a business.
What do you think the overhead is for your average B&M store? Rent and utilities and 2% payment processing and insurance and staffing and advertising...
Comments
Deleted
For those of you wondering on the significance of the change... Just incorporate if you flip coins. Seriously, there's zero reason to not at this point.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
Ebay said they would not issue 1099's for anything under 20 k this year. Has something changed?
I think the point being missed is how our government just changed the rules mid year last year and made it retroactive to January 1st.
I only know this because I researched it. PayPal and Ebay totally dropped the ball by not notifying it's sellers that this change would be implemented at some point in the future so affected sellers could plan accordingly.
Instead they are blindsiding sellers with notifications after they have already passed the point of no return.
Changing the rules after the game has started is not right and Ebay will pay the price as most smaller sellers will just stop doing business with them.
Also, this ongoing debate of paying your taxes is rubbish since our country was founded on fighting the British over unfair taxes!🇺🇸🇺🇸🇺🇸
Deleted
Nope. The fat government piggies will just spend it and not use it to pay down the debt. I think you have been brainwashed!🤣😂
Deleted
Some individual states like Maryland sneakily lowered the state tax reporting tax thresholds to $600 last year. Maryland passed the law in June 2020 and made it retroactive to January 2020.
Oh man....don't try and debate him....you are headed down a rabbit hole my friend! Just move along and save yourself the time and aggravation.
This public service announcement was brought to you by your friends on the PCGS forum!🤣😂
Really? I live in MD, but did not receive a 1099
Will PCGS be required to issue 1099 eventually for transactions on their BST board? And how are they exempt?
Shhh....don't give anyone any ideas!😂🤣.
Actually the third party payment processors are the companies who will 1099 you....PayPal, Ebay, etc..
They aren't taking payments or issuing payments so they wouldn't be responsible. No more than an old fashioned classified ad or craigslist listing.
I am done selling anything anyway and was just tying to keep up with everything they are doing. If there is a 2ay politicians can screw everybody they will find it and still keep on linen there own pockets.
This is how GC gets around it by my understanding. They don't process payments, a third party does, and sends them the money. GC just passes you your cut.
"It's like God, Family, Country, except Sticker, Plastic, Coin."
He's coming from the perspective of a dealer collecting sales tax in their B&M shop. If physical shops are legally required to collect sales tax in a particular jurisdiction, then dealers at coin shows are as well. The point being that dealers following the law are at a disadvantage to those that do not. I'm not sure anyone actually wants to pay sales tax as a customer.
Does that include your cc Bank or Credit Union that processed the payment?
No...if you sell an item online and accept payment electronically the transaction is handled by a third party processor. Your bank is where you chose to have the payment deposited by this third party.
If you sell on Amazon then Amazon will send you the 1099-K, sell on Ebay then Ebay does it, sell on BST then if you accept electronic payment then Paypal or whatever processor collects that payment does it.
There is no tax liability because the item depreciated in value. If the old iPhone became a collectible and you sold it for $1300 (after fees and costs incurred in selling it) and paid $1000, you have $300 in capital gains. No one suggested you pay taxes on the full acquisition cost. This is obviously subtracted and is not considered income. Your statement that profits from the sale of personal property are non taxable is not correct.
That's the federal limit for this year. Individual states have different levels.
I'm exempt as a reseller. But when I hand paperwork to dealers, some of them don't even known what to do with which means they are not paying sales tax or they'd be thrilled to have it. And yes, I walk away mad that they didn't add sales tax because that means that my prices are 8% higher (NY) than theirs because I am charging the REQUIRED sales tax.
Your ignore is broken again.
He wasn't debating me but carrying on a civil discussion. The only rabbit is in your hole.
Only if they transferred money to you, not if they took money from you.
Yes, exactly.
Deleted
Get a good accountant and keep good records, makes life very easy.
It does if you know you need both -- and can afford an accountant (probably not applicable to most on this board but many people nonetheless). The big part being that people may have operated under the older rules and did not think ahead to a future time when they might sell something and be placed under these newer rules. The IRS may be understanding or they may not. In either case it is increased hassle.
I'm glad that I've been keeping track of receipts over the last few years. Eventually I'll sell my collection and I'll have a reasonable basis for it. Maybe by then the unreasonable 28% capital gains on coins will be reduced.
Move down here to Ga. where we don't have no stinkin tax on coins!
I am a small time eBay seller with mostly used stuff that my family has accumulated over the years. Kids run through sporting goods, clothing, books, etc. really quickly! Some coins here and there but nothing big. I do think the 600.00 is a bit low since prices of a lot of stuff have gone up...heck selling 2 pairs of lightly used and outgrown ski pants for 30% of what we bought them for still would take up 12% of the 600.00!
Yeah I understand to keep good records but that can be a lot of hassle and I don't know the cost basis of most of the stuff and certainly don't have the receipts. Hopefully eBay will provide some sort of report that will summarize the sales and allow for the input of an estimated cost to make it easier! I guess my top seller rating will have to go
K
A poster wrote: “ If you’re selling used personal items you do not have to pay earned income in that.” I wrote that this is incorrect which you seem to disagree with. The post I quoted is demonstrably wrong. That is fact. And contrary to the posts in this thread there are procedures to establish acquisition value in the absence of a receipt. A thread discussing the many nuances of tax law is well outside the scope of this thread and this forum. When it doubt, contact an accountant.
You can also read the relevant IRS publications that are freely available to the public online which provide useful tax advice.
I tend to feel sympathy for the ebay sellers trying to make a part-time business of it; quite some hoops of records, accounting, and tax forms to jump.
I feel less sympathetic for those who don't keep track of costs and profit, and seem outraged that they should have to...
I truly hope that the US Gov't will rarely if ever hassle people who make a few thousand a year on ebay sales. I also hope the US Gov't will generally make people pay their fair taxes.
It would be nice if they practiced what they preach -
But during Polis’ successful run for governor of Colorado in 2018, his calls for transparency faded. The dot-com tycoon turned investor broke with recent precedent and refused to disclose his returns, blaming his Republican opponent, who wasn’t disclosing his.
Polis may have had other reasons for denying requests to release the records.
Despite a net worth estimated to be in the hundreds of millions, Polis paid nothing in federal income taxes in 2013, 2014 and 2015. From 2010 to 2018, his overall rate was just 8.2% — less than half of the 19% paid by a worker making $45,000 in 2018.
Wisdom has been chasing you but, you've always been faster
The folks people voted into office right now added additional squeeze in the $3B COVID Relief Act to those selling odds and ends. The current administration is trying to find very "creative" ways to fund their socialist ideologies. If you think it's bad now, just wait!
Seriously! Those publications appear to be written by lawyers and accountants who only understand their secret tax-code and accounting languages!
BST references available on request
Correct me if I'm wrong. In accountant speak, Earned income is income which is subject to Social Security withholding ie a regular job or self employment income. Capital gains tax which is the type of income derived from sales of personal property or whatever which is held for X amount of time is not subject to Social Security withholding. Both are subject to Federal Income Tax but the rates are different with Capital gains being a lower rate.
What you describe is what we (normal people) would hope would occur in a free and fair world.
Unfortunately, the problem (taxes, reporting, laws, etc...) is that politicians (most who have no clue), vote the way the money and lobbyist's want them to.
Lobbyist's, tax lawyers, accountants, etc. write the laws in our Tax Code that politicians blindly vote for.
Most of what is in the tax code is written so that rich people have to hire tax lawyers and accountants, in order for them to NOT pay their fair share of taxes. The Rich pay others to figure out the loopholes in the tax code and laws that was originally written by tax attorneys and accountants! This is why we hear stories of a secretary paying 15% of her pay towards taxes but Warren Buffett only paying a 5% effective tax rate. What they leave out is that the secretary only paid $1,500 in taxes but Warren Buffett payed Million$ in taxes. He would have paid Million$ more but had to hire tax attorneys and accountants to figure out all the tax loopholes he could exploit in the tax code.
This is why I seriously think we need to get to a flat tax or something similar.
Who was that politician running for president a few years back who promised we could figure out our taxes on a post card and send it in!
I'll bet tax attorneys and accountants are the lobbyist's who wrote these latest tax changes, allowing the IRS to go after small time eBay and Etsy sellers....hoping they would bring in more business for themselves in future years!
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and they put all kinds of garbage in them
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Next month, I will be putting tons of stuff on Ebay. Easy $100k worth of limited edition shoes, electronics, knives, coins, and clothes. I'm done re-selling
The gov't doesn't want us to make some extra $$$ and Ebay is taking too much
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Yes. Given the text and context of the post I was originally referring to, he was using the phrase to have a broader meaning to include any taxable income. If I misinterpreted his post, I’ll apologize to him. In terms of accounting terms, I agree with you. My point was that the sale of chattel isn’t exempt from income tax.
The IRS didn'> @ElKevvo said:
lmao. eBay takes 10% (ish) for which they provide tens of millions of eyeballs, payment processing, transaction insurance/guarantees. Anyone who thinks eBay is "taking too much" has never run a business.
What do you think the overhead is for your average B&M store? Rent and utilities and 2% payment processing and insurance and staffing and advertising...
eBay remains the best bargain in retail.