If You Sell on eBay, Read This

D Bopp · #1 06-28-2010, 04:51 PM

Most people who sell stuff on eBay should know about this stuff. But there will be new enforced rules in 2011 with the IRS. Read below:

http://www.thefiscaltimes.com/Issues...an-Cometh.aspx

i_got_a_mohawk · #2 06-28-2010, 05:01 PM

Thats a bit cruddy!

bolombo · #3 06-28-2010, 05:05 PM

Blows that does D Bopp. Surprised it took the old IRS this long to chatch on.

~ignited~wings~ · #4 06-28-2010, 05:06 PM

I don't disagree with the concept, but I disagree with their methods. This should be something that is openly stated when signing up or starting an auction on eBay. Charging that woman $15 000 for something she had no idea was taxable (and as an employee for IRS, so normal people don't stand a chance).

I live in Canada though, so I'm not sure any of this applies to me.

BigOldHarry · #5 06-28-2010, 05:08 PM

Given that Ebay has mostly become big companies selling stuff (as opposed to its roots), I don't see a problem: Taxes gotta be paid or you don't get roads/police/firemen/defense. If the IRS can, for once, use some common sense, they will leave folks like us alone - the musicians not trying to make a buck so much as sell stuff to buy new stuff...

But we are talking about the IRS here... So common sense will likely not be part of the equation.

Swift713 · #6 06-28-2010, 05:16 PM

Death & Taxes

nsmar4211 · #7 06-28-2010, 05:33 PM

errrrrrrrr if she made $41,000 she had to have SOME idea it's INCOME. Durh. BS on the "I didn't know". And I want her friends if they gave her that much stuff.

Basically if you made a certain number, ebay is going to send the info to the tax peeps. I don't remember the number but it wasnothing I'm going to ever go near!

One of the many reasons ebay is not connected to my bank account.

BluesWalker · #8 06-28-2010, 05:39 PM

I don't see the big deal, you have to be running a business to sell at the minimum revenue level.

Steve · #9 06-28-2010, 05:49 PM

“taxpayers who annually sell more than $20,000 worth of goods and have more than 200 electronic transactions".....

If you're doing that kind of business, you're in business. I mean really, c'mon.

It's only a matter of time before they figure out how to stick a sales tax on 'net sales. They've been trying for years.

Mrdak · #10 06-28-2010, 06:02 PM

Quote:

Originally Posted by Steve

“taxpayers who annually sell more than $20,000 worth of goods and have more than 200 electronic transactions".....

If you're doing that kind of business, you're in business. I mean really, c'mon.

It's only a matter of time before they figure out how to stick a sales tax on 'net sales. They've been trying for years.

Damn good point bro.

M0ses · #11 06-28-2010, 06:07 PM

Quote:

Originally Posted by nsmar4211

errrrrrrrr if she made $41,000 she had to have SOME idea it's INCOME. Durh. BS on the "I didn't know". And I want her friends if they gave her that much stuff.

Agreed. We need to call shenanigans on that. 1,800 auctions and $41k in one year is not clearing out the basement. That's a business, and that's income. She's an IRS employee and she knew exactly what she was doing, but she tried to get away with tax fraud.

stratovani · #12 06-28-2010, 06:37 PM

As the average TB member, I don't think we have too much to worry about. As the article states, "For their 2011 tax returns, “taxpayers who annually sell more than $20,000 worth of goods and have more than 200 electronic transactions" will receive a new IRS form, known as 1099-K, reporting the proceeds, says a spokesman for H&R Block Inc., the nation's largest tax preparation company.

These tax issues shouldn't be a concern for people who sell just a few small items online for less than they paid for them."

So if you sell a pedal or two a year you need not worry about it. However, if you're planning on selling a huge lot of vintage basses, then a consultation with a tax attorney might be a good idea.

Exploiter8 · #13 06-28-2010, 06:43 PM

Hmmm, Reminds me of a friend that always wanted to be paid in cash for band jobs, yet he still declared his equipment and related expenses on his taxes. Or was that me? I forgot!

X8

Mr wiggl3s · #14 06-28-2010, 07:11 PM

Quote:

Originally Posted by BigOldHarry

Given that Ebay has mostly become big companies selling stuff (as opposed to its roots), I don't see a problem: Taxes gotta be paid or you don't get roads/police/firemen/defense. If the IRS can, for once, use some common sense, they will leave folks like us alone - the musicians not trying to make a buck so much as sell stuff to buy new stuff...

But we are talking about the IRS here... So common sense will likely not be part of the equation.

It hasn't become, that's what it is. It's been moving towards "power sellers" since 2009, IIRC.

This makes sense though.

Quote:

Originally Posted by Exploiter8

Hmmm, Reminds me of a friend that always wanted to be paid in cash for band jobs, yet he still declared his equipment and related expenses on his taxes. Or was that me? I forgot!

X8

If you rape a prostitute, is it theft of goods?

SurferJoe46 · #15 06-28-2010, 07:35 PM

I posted this about a month ago and got boo'd and raspberries as it being asinine and not ever gonna happen. I got called names and a psycho worry wart. The legitimacy of my children was about the only thing that wasn't up for grabs.

I am exonerated.

and

I TOLD YOU SO!!!

Pilgrim · #16 06-28-2010, 08:59 PM

Quote:

Originally Posted by Steve

“taxpayers who annually sell more than $20,000 worth of goods and have more than 200 electronic transactions".....

If you're doing that kind of business, you're in business. I mean really, c'mon.

It's only a matter of time before they figure out how to stick a sales tax on 'net sales. They've been trying for years.

Amen. That's far beyond casual consumer buying and selling!

kjpollo · #17 06-29-2010, 02:35 PM

Quote:

Originally Posted by stratovani

As the average TB member, I don't think we have too much to worry about. As the article states, "For their 2011 tax returns, “taxpayers who annually sell more than $20,000 worth of goods and have more than 200 electronic transactions"

Be thankful its worded this way. One would have to generate both the required # of sales PLUS the total $$'s in sales.

Can you imagine if it was one or the other? Some poor soul who sells a couple of mega-high end basses (say a Ritter and an Alembic Series II) could conceivably hit the $20k without getting anywhere near the 200 transactions. Can you imagine how bad that would be?

Thunderscreech · #18 06-29-2010, 02:41 PM

This is why I do not buy or sell things on eBay. Plus it's easier to lie about the true value of things on craigslit.

Hold on, IRS is at my door...

BluesWalker · #19 06-29-2010, 02:50 PM

[quote=Steve;9332478
It's only a matter of time before they figure out how to stick a sales tax on 'net sales. They've been trying for years.[/QUOTE]

Some states are trying the honor system for sales taxes. They are asking on the annual tax return whether or not you have sold or purchased anything on-line for which sales taxes were not paid, to provide or estimate the total amount of sales and then compute a sales tax which is added to your income tax. It is only a matter of time before they tap into that tax liability stream via e-bay, paypal, etc.

MonetBass · #20 06-29-2010, 03:24 PM

$20K is a pretty high ceiling IMO. The most I've ever sold in one year was maybe just shy of $400. Most of us wouldn't have to worry about it.

And as it has been pointed out, if you're taking in that much revenue from online sales, then you're a business. I suggest forming an LLC and getting some tax breaks. Let's be smart about this folks.