ebay tax
 

Well eBay started early with the tax forms, was charged 22.00 for a 300.00 item, Ohio"s 7% tax rate. guess 'I'm done buying.:thumbsdown:

Most of the online sellers are now charging sales tax. The "good ol days" of tax free buying are gone.
What really pisses me off about ebay is their control over shipping costs. I was wondering why I was seeing ridiculous pricing and a seller informed that ebay now sets the cost, they have no control over it anymore. Friggen communist organization.

I believe thats a state thing. If you were a seller the 200 items and 20,000 in sales is still in effect. Good ole Illinois hit me 2 years ago and i was able to contact Paypal and they told me it was a state issue as I didnt hit the 200 or 20,000. Every state is looking for money and I believe facebook is hitting people with fees too.

eBay only sets the shipping cost if the seller uses their shipping calculator.

Jason

Jason is correct in that the seller does have control over shipping costs if they so choose. For example, I charge $6 if I know I can send something first class.

Also, the seller has no control over sales tax. That is a state by state thing determined by where the buyer lives and not the seller.

Believe me, I am not a huge Ebay fan but I have to give credit to their shipping system. There are good discounts from the Post Office and UPS to help make the shipping a little cheaper and they make it very easy to deal with International shipping through the Global Shipping program.

I needed 4 aluminum rivets to attach a front license holder for a 2006 Malibu. I found them at a dealer on ebay.. $2.43 each with $7.10 shipping. I figured the $7.10 would cover the cost of all 4, but when they were added to the cart, the shipping went to $20 and they proclaimed I had been given an $8.40 discount for a multiple purchase. I immediately dropped out of the cart and sent a request to the dealer for a shipping cost and their response was, they "have no control over that, as ebay sets the rate".

So you people are saying this is a voluntary thing the sellers can do if they are too lazy to deal with shipping costs ?

So for the buyers who just pay these crazy prices, who makes the profit on the exorbitant shipping cost ? The dealer ? I guess they would like the rate ebay sets, if so.

I did find a full bag of 10, shipped to my door for $20, plus the $1.10 tax, of course, which is charging tax on the shipping too. I see that a lot with online purchases too and request a refund from the sellers for that error.

I have been charged sales tax regardless of where (country, state) comes from for a year already. I guess that out of country sales tax goes right in ebay pocket.

Just wait until you see the sellers getting 1099s - that is what has just started, or will Jan 1

34 states charge sales tax on Ebay items. Again, the tax comes from the buyers state not the sellers. If you live in a state that has decided to jump on the tax bandwagon then you will pay sales tax if you buy something on Ebay. It does not matter where the seller lives.

The 1099's for sellers have been coming from PayPal for a few years now. Over $10,000 and 200 transactions. That was somewhat fair if you think about it. Now read the next paragraph.

Here's a new one thanks to the current administration. From Ebay "As of January 2022 the IRS will require all annual online sales over $600 to be reported using from 1099-K". So translated that means if you sell on Ebay a nicley dated 4053 carb or a couple of YH wheels you will have to report it and pay sales tax on it.

I was going to add some additional political comments but I will refrain because that is not what this forum is about.

You know What sucks is. I get to pay tax on my earnings at my job. I get to wear my body out and pay income tax on what I earn. I can see the outrage at paying tax on something you had on your garage shelf for years and want to make a hefty profit and not pay tax. Strange days .

To help clarify the NEW IRS rules that go into effect in 2022.
This new rule was buried in the "American Rescue Plan Act of 2021" that our current admin signed at the very start of 2021...
Ebay, Paypal, Venmo etc etc etc...Any 3rd party that handles money transactions for you will now issue a 1099-k form for the year if your sales exceed $600....Doesnt matter how many transactions...Yes...This USED to be $20,000 AND 200 transactions...That ends is lets see....8 days....
This is not for you to pay any Sales Tax as was mentioned above but to report income YOU receive...INCOME from Sales...It is then up to you to now fill out a schedule C business income and expense form and include any item COST for the actual item sold and also allows you to deduct shipping costs, Ebay Fees, packaging material, mileage to and from Post office etc, or any other overhead you have in running this "Enterprise"...They will report the total SALE which includes any shipping you charge..Not sure if the total that is reported will include Sales tax ebay collects from seller as they collect and disburse to each state on YOUR behalf...so it may not be reported in the TOTAL Sales...
Also if you sell something and it is returned the sale will still show up in the YEARLY total reported on the 1099-k and it is up to you to deduct "Returns" on your schedule C....
All of this was done in a bill that nobody read...Not you, not Me and not many of our Congress people...Just Rammed thru and most of us are only finding out now...many with just this thread...Sorry everyone....But please understand...Ebay has it faults but be 100% confident this is NOT the idea of an Paypal, Ebay, Venmo think tank....They would rather have NO reporting.....Things are happening out there that people have no idea of....Can you say 85 BILLION yes BILLION dollars going to IRS for collections (from middle class) in the proposed BBB plan....Many Thanks for Mr. Manchin for the temporary hold on this Lunacy...Read everybody....and the READ SOME MORE....
This is deep...This is real....Everyone get ready for 1099K forms in 2022 and then a personal IRS representative if and when BBB gets rammed down our.....
Also somewhere in the BBB mirage there is the plan for Bank reporting of ANY transaction that is $600 or more...IN or OUT....OUR BANK ACCOUNTS???...$600 or above???...How many of us do transactions in or out that exceed $600 in any given month...Lots i would guess...I have to explain to what those are now?
If you really read carefully above i kept this from being political...This is just real comments and back and forth about something that is important to many people in our hobby...So...should be n problems with any of these or the previous statements above..
With great Respect to SCR and all of its members...
Merry Christmas Everyone....and most importantly...STAND FIRM!

Q: Will the updated 1099-K Threshold Change apply if I sell personal property, like a couch or an item at a garage sale, for $600 or more if it was sold for less than its original value? Will I be issued a Form 1099-K?

Form 1099-K is an IRS informational tax form that is used to report goods and services payments received by a business or individual in the calendar year. While banks and payment service providers, like PayPal and Venmo are required by the IRS to send customers a Form-1099K if they meet the $600 threshold amount, there are certain amounts that may be included on the form that are generally excluded from gross income and therefore are not subject to income tax. This includes:

Amounts from selling personal items at a loss
Amounts sent as reimbursement
Amounts sent as a gift

So, for example, if you purchased a couch for $1200 and sold it for $800, this amount would not be subject to income tax.

It does not surprise me with the crazy debts of all our governments. Whats next, Craigslist and Marketplace?

Thank goodness they are about 15 years too late doing it.

Paul

Facebook is already asking info. So yes Marketplace.

In a year or two from now, Cash Swap Meets will be booming once again. As it always has, cash enterprise will go underground when the greed of government starts attacking all forms of sales and/or side income.

Hershey and Portland will be busier than ever once all this viral $hit comes to an end. I've been hording parts for a while and no longer use eBay for much of anything. Don't think I've sold anything in 2-3 years and plan on keeping it that way.

I'll bet there are a lot of big ticket items on ebay right now that the sellers are hoping sell before the 1st of the year, LOL

Cars come to mind. Wouldn't surprise me if a bunch get pulled down after new years eve.

Swap meets have always been booming, at least in my eyes. I'm not a fan of internet buying, I like to see and touch what I'm paying for, wait,, that didn't come out right :grin:

The 1099-K reporting is done by any 3rd party that handles the cash transaction for you. If you sell something at a garage sale you would only get this reported if your paid via paypal or similar...
Weather or not you paid 1200 and sold for 800 is up to you to explain / report this on the Schedule C... Of course they wont allow you to take this as a loss...Sounds crazy...yes..all in an effort to get people to explain/show all the financial activity they have...
If you sell something to ANYBODY, ANYWHERE and get paid via EBAy PAy, Paypal, Venmo etc...THIS is what will report to you...Again..They report the TOTAL monies placed into your account..That is all they are responsible to do...YOU have to fill in all the blanks from there...
It is a MASSIVE CHANGE that has taken place from 1 year to the next....
Most people don't even know this is coming. Most people are not even paying attention to what is happening around them...The rest are simply being lied to...Lying by Omission is a horrible thing...
Fasten Your Seat belts...It all changes in 8 days.....
RA

You should see the Taxes we pay to have a brick and mortar building to sell rebuilt alternators and starters. But that is old news.

Not to rant, but how about $125,000 a year real estate taxes in Crook County Illinois to sell fuel at a Nickel a gallon profit. I paid $12,000 a year back when I bought the place in 1985, now its $10,000 a month

Bill

Vote with your feet, like the people in CA and NY are doing.

Very well put, I'm planning on it in a couple of years.

Bill

Some call it Cancel Culture, some call it Vote with your feet. It is the same thing.

What about paypal "friends and family" transactions? My understanding is that as long as they continue to allow those, they do not count towards your 600.00 threshold, just as they do not count towards the 20K threshold now.

Post #11 covers this.

I've had a few FB Marketplace sellers ask me to pay them by getting them a VISA gift card @ my local store.
Once I buy it,they'll ask me for the PIN to verify,then ship my item & send me the tracking #.

Interesting reading for a Canadian.
I've noticed a high increase in the amount of FB classifications, sites, friends .... all for the purpose of selling parts/things.
I've been looking for parts for my restoration and EB has gone crazy with charges, I don't have a FB page, I just scroll through the sites as they pop up.

So you favoured EB...! I bought some parts off a nice responsive lady in California. Car parts, and she charged me CA sales tax, (the last time I'll buy on EB). I called her and told her I lived in Canada, paid with Can credit card, I have never had to pay state sales tax as I don't live in the state. She informed me that she had "No control over the tax or shipping charges"!
She told me EB gets her $$ before she does and that she often waits more than a month for her $$ to arrive from EB after the sale. The shipping and tax is deducted from her sale $$.......
Nice way to run a business.
Time to rethink this......

Now I'm gonna have to sell something on Ebay, just so I can see how many and which ones of these BS stories are true. Haven't sold anything in over two years, but my account is still good, cause they messaged me through my Ebay account that it's time to update my credit card number. The CC I had listed runs out December 31, 2021, so I know it wasn't someone trying to run a scam on me.

If you go to sell something on ebay and haven’t in a while, you will not be able to list anything without updating your info which includes adding your SSN.

Some more explanation on this in the link below.



https://www.ecommercebytes.com/C/blo...638507551.html

Get your head up where the sun shines, everyone get the automated "renew your CC" when the time comes. It's automated to get you to renew because EB has it on file....

I haven't seen anything in this listing that is BS.... The shipping and tax by EB is the only BS

You will receive a 1099 either way; it will be up to you to sort it out with the IRS come tax time. That being said, Paypal, Venmo, Cashapp, etc. will all start asking for SSN soon just as ebay has already been doing.

[QUOTE=Mr70;1575997]I've had a few FB Marketplace sellers ask me to pay them by getting them a VISA gift card @ my local store.
Once I buy it,they'll ask me for the PIN to verify,then ship my item & send me the tracking #.[/QUOTE

Be very careful doing this. This is a very typical scam method.

Rich

Agree Rich,as there's no retaliation for me at all if the seller never ships me my item.

Bohica!