No one is immune from taxes on Ebay sales.........

2manycoins2fewfunds · April 23, 2010 1:35AM

For all you guys who like myself, do report all Ebay sales.................

http://www.bloomberg.com/apps/news?pid=20603037&sid=aldnEtK2J8.Y

Steve27 · April 23, 2010 1:36AM

LINK

messydesk · April 23, 2010 1:48AM

Well, now we have someone qualified to be Geithner's replacement if need be. I wonder how much of the business that generated that kind of tax bill was conducted while she was at work.

jmski52 · April 23, 2010 1:49AM

So, does ebay report all sales proceeds to the IRS now? How else would they be putting a number on what she owes?

adamlaneus · April 23, 2010 1:53AM

I don't like how the IRS assumes a 'zero basis' if you cannot show proof to their satisfaction.

Keep your receipts, folks. For everything in your coin collection, you ought to have proof of your purchase price.

telephoto1 · April 23, 2010 2:00AM

That stinks. Seeing how it was evidently mostly all used designer clothes, I'd say that was a safe bet she actually lost money when she resold them. I guess the lesson here is to keep receipts if you think there's even a chance you might sell it on ebay later. Of course my sympathy is somewhat limited...considering her job description, she should have known the law.

eggbone · April 23, 2010 2:05AM

OUCH

ziggy29 · April 23, 2010 2:08AM

Memo to self: If you don't have the receipt showing your cost basis any more, don't sell it on eBay. Got it.

fishcooker · April 23, 2010 2:09AM

Nobody I know gets $40,000 from selling "used" clothes on Ebay.

Silverstate · April 23, 2010 2:10AM

Nothing like paying taxes twice.

dbcoin · April 23, 2010 2:14AM

I give all my clothes away to charity and take the deduction on my taxes. I find that as a far safer and easier way to do things.

I use to do the garage sale route, but found this easier.

EagleEye · April 23, 2010 2:18AM

For the Legal eagles on the board

Taxpayers generally bear the burden of proving that the Commissioner's determinations are incorrect.

Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). However, the Commissioner bears the burden of proof in respect of any new matter or increases in deficiency. Rule 142(a); Powerstein v. Commissioner, 99 T.C. 466, 473 n.4 (1992). The resolution of the remaining issues does not depend on which party has the burden of proof. The Court resolves those issues on the preponderance of the evidence in the record; therefore section 7491 does not apply.

Broadstruck · April 23, 2010 2:20AM

<< I give all my clothes away to charity and take the deduction on my taxes. I find that as a far safer and easier way to do things.

I use to do the garage sale route, but found this easier. >>

Please keep me posted if you now give your coins away

adamlaneus · April 23, 2010 2:25AM

The TLA for the week:

BDA = Bank Deposit Analysis

Conclusion: Just spend your eBay profit on more coins from eBay. Voila - no bank deposits.

2manycoins2fewfunds · April 23, 2010 2:26AM

<< Nobody I know gets $40,000 from selling "used" clothes on Ebay. >>

Somehow I suspect she was running a business where she would get designer clothes from Goodwill or consignment shops and then resell them on Ebay.

At the minimum I would have thought there would have been credit card receits..........

adamlaneus · April 23, 2010 2:31AM

The Bank Deposit Analysis would probably capture any expenses as well as any income. So it's really a measure of the taxable profit. Sounds hard to claim otherwise against such data.

dsessom · April 23, 2010 2:50AM

Sales tax doesn't apply for internet sales out of state, but I guess it would count as income. Still really sucks though.

ziggy29 · April 23, 2010 2:54AM

<< Sales tax doesn't apply for internet sales out of state >>

Pretty much every state with a sales tax (if not all) have laws that say the buyers are still responsible for paying the sales tax to the state even if it isn't collected at point of sale for interstate transactions. Given how hard-up states are for more tax revenue now, I would expect them to more aggressively enforce this in the future.

johnny9434 · April 23, 2010 3:40AM

it never ceases to amaze me on ebay

coolest · April 23, 2010 4:32AM

What if the $46,000 worth of sold items cost him $50,000 then is that still income?

derryb · April 23, 2010 4:33AM

If the IRS will eat their own no chance they will show you mercy.

ziggy29 · April 23, 2010 5:51AM

<< What if the $46,000 worth of sold items cost him $50,000 then is that still income? >>

Yes, if the IRS asks you about it and you have no receipt to prove you paid $50,000, yes, you could owe taxes on $46,000 (plus interest and penalties) even though you had a $4,000 loss on the sale.

blueifalcon · April 23, 2010 6:49AM

Got a friend that calls the IRS... The American gestapo...

PerryHall · April 23, 2010 6:53AM

<< Got a friend that calls the IRS... The American gestapo...

>>

With friends like that, who needs enemies?

lkenefic · April 23, 2010 7:42AM

So if you're a collector and have sold coins at a loss, can you declare "business" losses? This works both ways doesn't it?

L

MsMorrisine · April 23, 2010 7:50AM

<< So if you're a collector and have sold coins at a loss, can you declare "business" losses? This works both ways doesn't it? >>

well, one must play by the rules.

got receipts to back up those purchase prices?

(I've had some register receipts fade to unreadable after only a few years, and definitely less than 7. I guess that is my fault, too.)

timber100 · April 23, 2010 10:34AM

I sell all of my kids outgrown clothing from american eagle, ab and fitch, etc. on ebay. You would be surprised what people pay. I have never received more for the clothing than I paid for it, but I cannot prove that as I have no receipts for what I paid for them.
If you sell big ticket coins on ebay, make sure you have records and keep them available for a few years.

No one is immune from taxes on Ebay sales.........

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