The worst part of this law is the $600 will include any shipping charges you received from your buyers. So you could sell a classic car bumper for $450 plus $150 for shipping and that would take you up to $600 in sales.
Stick to Craigslist if you only have a few items to sell.
The thing that makes me chuckle about all of this hair pulling about the new rules is that taxes have always been due on this stuff. It's not new. If you are transacting, those transactions are taxable per applicable tax laws. For a long time sellers on ebay were able to sell without worrying about collecting sales taxes. Not anymore. Now income is going to be scrutinized more closely regarding transactions of collectibles. Nobody should be that surprised by it. I suspect it will increase some sales at shows, it will increase private transactions via Facebook groups and other messaging apps, and people will continue to value cash sales over all other forms of transactions. That said, a huge chunk of collectors don't have opportunities to buy outside of online forums such as ebay because of their location or because of their lifestyle (too busy to go to shows, not enough time to allocate to buying trips etc.) The same is true for a lot of sellers. It is a great convenience to be able to post pictures of items online in one forum or another, advertise them for free, get buyers, complete transactions, and only have the inconvenience of packing them for shipping. Money coming in via PayPal or CashApp or Venmo hits and is available almost instantly. That level of convenience is worth something, and I think that a lot of sellers will not abandon online sales because income is now going to be reported. It will most likely just result in increased prices as sellers adapt and account for a decreased net due to taxes. Buyers will suffer, as it will result in less product for more money. But such is life. Frankly, though, I really don't understand why people are all that surprised.
kevin
@MisterTim1962 said:
The worst part of this law is the $600 will include any shipping charges you received from your buyers. So you could sell a classic car bumper for $450 plus $150 for shipping and that would take you up to $600 in sales.
Stick to Craigslist if you only have a few items to sell.
Is is fact that eBay will report shipping costs? When you transact via their shipping portal they know exactly how much from your transaction they are withholding from you.
IMHO if eBay is not accounting for shipping costs, when utilizing their portal, then yet another solid reason to leave the platform.
It's the singer not the song - Peter Townshend (1972)
So here's a question. I have two autographed baseballs I'm hoping to sell sometime this year, after first running them past PSA at a combined cost of about $135, which I think would go for around $600 on eBay (and possibly more). If I do sell them for $600 will I be allowed to deduct that cost? What about the cost of the two baseballs 35 or so years ago, and what I paid to have them signed at shows -- figures I can only estimate, but undoubtedly put my overall expenses at around $200? For PSA I'd at least have a receipt, but not for those other payments. I apologize if this has been addressed above, which I don't think has been the case, but does anyone know how I/we should handle such a situation, if just selling individually and not running an operation like Probstein?
Is is fact that eBay will report shipping costs? When you transact via their shipping portal they know exactly how much from your transaction they are withholding from you.
Yes, this is straight from eBay's website:
The $600 threshold is calculated on your total sales starting Jan 1, 2022. This includes shipping costs but not any adjustments such as credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts.
Like others have said, I'm not sure why this is a big deal and why reporting your profits is such a foreign concept to some of us. You should have been doing this all along. Getting a 1099 should actually help you because it gives you a starting point for your gross sales. And yes, from the beginning of our tax code, dealers at shows should be reporting their profits as taxable income.
@dontippet said:
Like others have said, I'm not sure why this is a big deal and why reporting your profits is such a foreign concept to some of us. You should have been doing this all along. Getting a 1099 should actually help you because it gives you a starting point for your gross sales. And yes, from the beginning of our tax code, dealers at shows should be reporting their profits as taxable income.
You're coming at this from a very specific perspective - maybe you sell $5-10K of cards per month. Some of us are selling crap we bought decades ago with no record of cost basis. Sometimes I'll get $60 for 3 boxes of 1990 Upper Deck that I got in a bulk lot 10 years ago. Or maybe I sell parts off a chainsaw I bought for $500 in 1985. It costs $20 to ship but I just want it out of my sight. I don't need the govt monitoring and asking for 15% of the profits from my online yard sales. $600 is an absurd threshold and when a 1099 is issued it requires one to prove cost basis to the IRS when they really shouldn't have to because the tax liability is negligible. This is govt overreach and some people are ok with that and wasting hours of their life hunting down pointless paperwork. You hate to see it.
And yes, dealers should obviously be reporting income.
@dontippet said:
Like others have said, I'm not sure why this is a big deal and why reporting your profits is such a foreign concept to some of us. You should have been doing this all along. Getting a 1099 should actually help you because it gives you a starting point for your gross sales. And yes, from the beginning of our tax code, dealers at shows should be reporting their profits as taxable income.
You're coming at this from a very specific perspective - maybe you sell $5-10K of cards per month. Some of us are selling crap we bought decades ago with no record of cost basis. Sometimes I'll get $60 for 3 boxes of 1990 Upper Deck that I got in a bulk lot 10 years ago. Or maybe I sell parts off a chainsaw I bought for $500 in 1985. It costs $20 to ship but I just want it out of my sight. I don't need the govt monitoring and asking for 15% of the profits from my online yard sales. $600 is an absurd threshold and when a 1099 is issued it requires one to prove cost basis to the IRS when they really shouldn't have to because the tax liability is negligible. This is govt overreach and some people are ok with that and wasting hours of their life hunting down pointless paperwork. You hate to see it.
And yes, dealers should obviously be reporting income.
Hey West22
I like it:
"Sometimes I'll get $60 for 3 boxes of 1990 Upper Deck that I got in a bulk lot 10 years ago. Or maybe I sell parts off a chainsaw I bought for $500 in 1985. It costs $20 to ship but I just want it out of my sight. I don't need the govt monitoring and asking for 15% of the profits from my online yard sales. $600 is an absurd threshold and when a 1099 is issued it requires one to prove cost basis to the IRS when they really shouldn't have to because the tax liability is negligible. This is govt overreach and some people are ok with that and wasting hours of their life hunting down pointless paperwork. "
Stubhub is doing the same thing. Does this mean I get to claim the loss on my Cubs season tickets every time I cannot go and have to sell them for less than face value? I am in no way in the business of selling tickets.
@brad31 said:
Stubhub is doing the same thing. Does this mean I get to claim the loss on my Cubs season tickets every time I cannot go and have to sell them for less than face value? I am in no way in the business of selling tickets.
If you ever need to get rid of Cubs tix, let me know! 😁
I'm just going to keep track of sales and costs as best I can. I'll figure it out next year at tax time.
Unfortunately, my sales have stopped right now because my printer is holding me hostage. I can't print my black & white shipping labels until I buy cyan & magenta ink that I don't need.
Some of my costs is/are impossible to calculate; such as raw material, most of my PSA’s, and count boxes.
I’ll touch on that part in a moment.
My actual cost is/are: buying mailer envelopes, packing tape, sleeves & team bags, and paying for shipping since I offer free shipping.
I do not and will not buy ink for a printer: I hand write all of the buyers address and take their mailers to the post office and later that day I will post positive feedback as with a tracking number for my buyers.
I do not have any cost on packing material and external shipping boxes.
If I do have to pay for count boxes it‘s way under a dollar per box.
About 50% of my raw football came from dead Uncle Steve; not my uncle and Janie told me just get em out of the house; with some of that material I was able to trade and acquire and build 54 Bowman {partially completed} - 60 Fleer {partially completed} - 68 Stand Up’s - 75 - 78 - 79 - 82 - 83 - 85 football sets.
A few years ago on a house renovation job I was able to acquire more football cards: 69 - 70 - 71 - 72 - 77. I asked the homeowner: what are you going to do with these cards, the homeowner told me to take them and get em out of the house.
With some of my 70’s basketball cards, they came from Marge which she gave to me; again get em out of the house.
Now with my baseball & basketball cards when I did buy them at that time I was so liquored up I had no idea about the cost of the cards.
Don’t worry I do not drink anymore.
Now with some of my PSA material that I have was a Good Samaritan trade. If I went into further detail about that someone might look at me and just shake their head and say to themselves, how did you do that?
My new question is: “How can I show the cost on a 1099”?
@yankeeno7 said:
If you keep individual sales under $600, is there a maximum total for the end of the year to receive a 1099? Supposedly even friends/family count. My cousin sends me $400 a month f/f for money he borrowed over the past couple of years. It's certainly not income but now sounds like they want to treat ANYTHING as income. I might have to have him mail me actual checks. What a pain.
So PP FF transactions will count toward this thievery? Has this been confirmed?
IRS: "Our agents aren't smart enough to take on the billion dollar corporations who pay little or no taxes, so let's go after the poor guys who can't afford corporate lawyers to defend themselves and million dollar CPAs to cook the books for them."
While we were getting those awesome stimulus checks for the past 18 months, I kept saying "there's no such thing as free money" and people looked at me like I had two heads... now we all get to pay it back. The problem is, this will never go back to the way it was ($20,000 cap), so we will pay it back and THEN some. I'm still not sure how all of this helps middle income families. Billionaires don't sell on ebay LOL
Well, I'll just start doing shows again........making as many cash sales as possible. This is a complete outrage and there are so many other things I want to say, but I won't here.............
@jeffcbay said:
While we were getting those awesome stimulus checks for the past 18 months, I kept saying "there's no such thing as free money" and people looked at me like I had two heads... now we all get to pay it back. The problem is, this will never go back to the way it was ($20,000 cap), so we will pay it back and THEN some. I'm still not sure how all of this helps middle income families. Billionaires don't sell on ebay LOL
Hey jeffcbay,
I'm totally with ya...
Even a $5,000 cap would be Perfect.
@billwaltonsbeard said:
Well, I'll just start doing shows again........making as many cash sales as possible. This is a complete outrage and there are so many other things I want to say, but I won't here.............
Hey billwaltonsbeard,
This is a complete outrage and there are so many other things I want to say, but I won't here.............
Yeah, I do understand how you feel.
This $600 gig is Insane.
@jeffcbay said: @tulsaboy , by that rationale, wouldn't card show dealers also need to report their sales as taxable income?
Not that there ilk was, but they should have been all along.
I recall back in the 90's at multiple shows State tax inspectors going from table to table. Of course that could have been for sales tax???
I was at a Show in Springfield Missouri in the mid 1980s and the city people were coming around making sure everyone had a peddler's license with the city. Most did not had they charged you $10 on the spot to get one.
Now that I think about it, it could have been someone faking it and just collecting some easy money.
#LetsGoSwitzerlandThe Man Who Does Not Read Has No Advantage Over the Man Who Cannot Read. The biggest obstacle to progress is a habit of “buying what we want and begging for what we need.”You get the Freedom you fight for and get the Oppression you deserve.
Comments
The worst part of this law is the $600 will include any shipping charges you received from your buyers. So you could sell a classic car bumper for $450 plus $150 for shipping and that would take you up to $600 in sales.
Stick to Craigslist if you only have a few items to sell.
I've been wondering if we will see an increase in card shows with the new rules.
The thing that makes me chuckle about all of this hair pulling about the new rules is that taxes have always been due on this stuff. It's not new. If you are transacting, those transactions are taxable per applicable tax laws. For a long time sellers on ebay were able to sell without worrying about collecting sales taxes. Not anymore. Now income is going to be scrutinized more closely regarding transactions of collectibles. Nobody should be that surprised by it. I suspect it will increase some sales at shows, it will increase private transactions via Facebook groups and other messaging apps, and people will continue to value cash sales over all other forms of transactions. That said, a huge chunk of collectors don't have opportunities to buy outside of online forums such as ebay because of their location or because of their lifestyle (too busy to go to shows, not enough time to allocate to buying trips etc.) The same is true for a lot of sellers. It is a great convenience to be able to post pictures of items online in one forum or another, advertise them for free, get buyers, complete transactions, and only have the inconvenience of packing them for shipping. Money coming in via PayPal or CashApp or Venmo hits and is available almost instantly. That level of convenience is worth something, and I think that a lot of sellers will not abandon online sales because income is now going to be reported. It will most likely just result in increased prices as sellers adapt and account for a decreased net due to taxes. Buyers will suffer, as it will result in less product for more money. But such is life. Frankly, though, I really don't understand why people are all that surprised.
kevin
Is is fact that eBay will report shipping costs? When you transact via their shipping portal they know exactly how much from your transaction they are withholding from you.
IMHO if eBay is not accounting for shipping costs, when utilizing their portal, then yet another solid reason to leave the platform.
It's the singer not the song - Peter Townshend (1972)
So here's a question. I have two autographed baseballs I'm hoping to sell sometime this year, after first running them past PSA at a combined cost of about $135, which I think would go for around $600 on eBay (and possibly more). If I do sell them for $600 will I be allowed to deduct that cost? What about the cost of the two baseballs 35 or so years ago, and what I paid to have them signed at shows -- figures I can only estimate, but undoubtedly put my overall expenses at around $200? For PSA I'd at least have a receipt, but not for those other payments. I apologize if this has been addressed above, which I don't think has been the case, but does anyone know how I/we should handle such a situation, if just selling individually and not running an operation like Probstein?
@tulsaboy , by that rationale, wouldn't card show dealers also need to report their sales as taxable income?
Not that there ilk was, but they should have been all along.
I recall back in the 90's at multiple shows State tax inspectors going from table to table. Of course that could have been for sales tax???
It's the singer not the song - Peter Townshend (1972)
Yes, this is straight from eBay's website:
Like others have said, I'm not sure why this is a big deal and why reporting your profits is such a foreign concept to some of us. You should have been doing this all along. Getting a 1099 should actually help you because it gives you a starting point for your gross sales. And yes, from the beginning of our tax code, dealers at shows should be reporting their profits as taxable income.
>
Successful transactions on the BST boards with rtimmer, coincoins, gerard, tincup, tjm965, MMR, mission16, dirtygoldman, AUandAG, deadmunny, thedutymon, leadoff4, Kid4HOF03, BRI2327, colebear, mcholke, rpcolettrane, rockdjrw, publius, quik, kalinefan, Allen, JackWESQ, CON40, Griffeyfan2430, blue227, Tiggs2012, ndleo, CDsNuts, ve3rules, doh, MurphDawg, tennessebanker, and gene1978.
You're coming at this from a very specific perspective - maybe you sell $5-10K of cards per month. Some of us are selling crap we bought decades ago with no record of cost basis. Sometimes I'll get $60 for 3 boxes of 1990 Upper Deck that I got in a bulk lot 10 years ago. Or maybe I sell parts off a chainsaw I bought for $500 in 1985. It costs $20 to ship but I just want it out of my sight. I don't need the govt monitoring and asking for 15% of the profits from my online yard sales. $600 is an absurd threshold and when a 1099 is issued it requires one to prove cost basis to the IRS when they really shouldn't have to because the tax liability is negligible. This is govt overreach and some people are ok with that and wasting hours of their life hunting down pointless paperwork. You hate to see it.
And yes, dealers should obviously be reporting income.
Yes. And they should have been for decades.
kevin
Hey West22
I like it:
"Sometimes I'll get $60 for 3 boxes of 1990 Upper Deck that I got in a bulk lot 10 years ago. Or maybe I sell parts off a chainsaw I bought for $500 in 1985. It costs $20 to ship but I just want it out of my sight. I don't need the govt monitoring and asking for 15% of the profits from my online yard sales. $600 is an absurd threshold and when a 1099 is issued it requires one to prove cost basis to the IRS when they really shouldn't have to because the tax liability is negligible. This is govt overreach and some people are ok with that and wasting hours of their life hunting down pointless paperwork. "
Stubhub is doing the same thing. Does this mean I get to claim the loss on my Cubs season tickets every time I cannot go and have to sell them for less than face value? I am in no way in the business of selling tickets.
If you ever need to get rid of Cubs tix, let me know! 😁
I'm just going to keep track of sales and costs as best I can. I'll figure it out next year at tax time.
Unfortunately, my sales have stopped right now because my printer is holding me hostage. I can't print my black & white shipping labels until I buy cyan & magenta ink that I don't need.
Some of my costs is/are impossible to calculate; such as raw material, most of my PSA’s, and count boxes.
I’ll touch on that part in a moment.
My actual cost is/are: buying mailer envelopes, packing tape, sleeves & team bags, and paying for shipping since I offer free shipping.
I do not and will not buy ink for a printer: I hand write all of the buyers address and take their mailers to the post office and later that day I will post positive feedback as with a tracking number for my buyers.
I do not have any cost on packing material and external shipping boxes.
If I do have to pay for count boxes it‘s way under a dollar per box.
About 50% of my raw football came from dead Uncle Steve; not my uncle and Janie told me just get em out of the house; with some of that material I was able to trade and acquire and build 54 Bowman {partially completed} - 60 Fleer {partially completed} - 68 Stand Up’s - 75 - 78 - 79 - 82 - 83 - 85 football sets.
A few years ago on a house renovation job I was able to acquire more football cards: 69 - 70 - 71 - 72 - 77. I asked the homeowner: what are you going to do with these cards, the homeowner told me to take them and get em out of the house.
With some of my 70’s basketball cards, they came from Marge which she gave to me; again get em out of the house.
Now with my baseball & basketball cards when I did buy them at that time I was so liquored up I had no idea about the cost of the cards.
Don’t worry I do not drink anymore.
Now with some of my PSA material that I have was a Good Samaritan trade. If I went into further detail about that someone might look at me and just shake their head and say to themselves, how did you do that?
My new question is: “How can I show the cost on a 1099”?
So PP FF transactions will count toward this thievery? Has this been confirmed?
IRS: "Our agents aren't smart enough to take on the billion dollar corporations who pay little or no taxes, so let's go after the poor guys who can't afford corporate lawyers to defend themselves and million dollar CPAs to cook the books for them."
.
While we were getting those awesome stimulus checks for the past 18 months, I kept saying "there's no such thing as free money" and people looked at me like I had two heads... now we all get to pay it back. The problem is, this will never go back to the way it was ($20,000 cap), so we will pay it back and THEN some. I'm still not sure how all of this helps middle income families. Billionaires don't sell on ebay LOL
Well, I'll just start doing shows again........making as many cash sales as possible. This is a complete outrage and there are so many other things I want to say, but I won't here.............
Hey jeffcbay,
I'm totally with ya...
Even a $5,000 cap would be Perfect.
Hey billwaltonsbeard,
This is a complete outrage and there are so many other things I want to say, but I won't here.............
Yeah, I do understand how you feel.
This $600 gig is Insane.
https://www.eseller365.com/ebay-asks-sellers-fight-low-thresholds-1099k/
I was at a Show in Springfield Missouri in the mid 1980s and the city people were coming around making sure everyone had a peddler's license with the city. Most did not had they charged you $10 on the spot to get one.
Now that I think about it, it could have been someone faking it and just collecting some easy money.