I haven't done eBay in awhile, but payments used to be 100% through PayPal as eBay had purchased PayPal many years ago.
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Random eBay sales tax question
- Thread starter DJCalamari
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I haven't done eBay in awhile, but payments used to be 100% through PayPal as eBay had purchased PayPal many years ago.
^^ ebay policies seem to change every few months...i do think paypal is still required, but paypal now takes your bank cards.
For the same reason people who are big on “law & order” are always trying to get laws passed that don’t apply to them - but protest vigorously whenever somebody “violates our rights” by trying to get laws passed that do apply to them.
tl:dr - People are often hypocrites.
buldog5151bass
Kibble, milkbones, and P Basses. And redheads.
Yes, this is a p.i.a. You have to sign onto PayPal even if you are using your card, but you can't track it on your PayPal account.
^^ as an aside, i created a bank account ~15/20 years ago solely to use as a linked paypal account, and that has worked very well. i think i got lucky with that strategy. i would not want to link one of my 'regular' accounts to paypal. nasty stuff.
By the same token they handle the filing an remittances to 50 different states and god knows how many separate tax jurisdictions within those states. Small price for getting that done for you if you’re a seller.
It’s also not a scam. Their fees and terms are clearly spelled out. If you’re surprised it’s not their fault because you didn’t read them. Which is something you’re clearly and repeatedly told to do before you open an account on eBay, Reverb, or PayPal. And those were also the terms you agreed to as a condition of opening an account with them. So where is it a scam? Did somebody hold a gun to your head and force you to join?
Same here. It’s cheap insurance wise strategy.
Most times mine has $50 (my bank’s minimum balance) idling in it. If I want to buy something I’ll deposit my budgeted amount of cash to cover the expected transaction. If I do end up buying something it’s all good. If I end up not buying I just take it back out. So even if that account ever does get hacked all they’re likely to get is $50 max. It also keeps me from overspending my budget.
You are incorrect. Paypal does not file or remit sales tax on behalf of buyers, to any states.
It’s also not a scam. Their fees and terms are clearly spelled out. If you’re surprised it’s not their fault because you didn’t read them. Which is something you’re clearly and repeatedly told to do before you open an account on eBay, Reverb, or PayPal. And those were also the terms you agreed to as a condition of opening an account with them. So where is it a scam? Did somebody hold a gun to your head and force you to join?
Then let's agree they're shady. These were not the policies of Paypal when I joined, and they did not inform users of this change. It’s just a fun surprise the first time they do it.
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Wait until you try to tell a flipper that they are supposed to pay capital gains tax on their profit!
On the federal level the profit would more likely be taxed as ordinary income. You’d need to buy something like a musical instrument and have it qualify as a collectible under IRS regs for the more favorable CG tax treatment. If you’re a flipper it’ll most likely be seen as a normal personal business activity and any profit or loss will be treated as ordinary income for income tax purposes.
Form 1099-K
If you’ve sold at least $20,000 in gross merchandise value and exceeded 200 transactions for goods and services* on eBay this year, you will be receiving a tax Form 1099-K for all your 2019 sales transactions including relevant internet sales tax.
If you’ve sold at least $20,000 in gross merchandise value and exceeded 200 transactions for goods and services* on eBay this year, you will be receiving a tax Form 1099-K for all your 2019 sales transactions including relevant internet sales tax.
That’s because they’re now largely illegal.
well yeah, they weren't gonna start collecting sales tax voluntarily
. What a pain in the a** to implement, it certainly cut into online retailer's competitive advantage and I remember lots of wailing about "killing the internet" lol.No tax was a reasonable policy/subsidy in the early days to get things off the ground IMO, but it certainly isn't needed now. E-commerce isn't going anywhere.
The Supreme Court of the United States agreed with you on that point - along with every state governor.
I don't think you are correct and to argue it would be extremely boring... but the point is not the technicality of how the income would be reported or taxed, but that the taxman says it should be. I'd guess a small fraction of such profitable sales by casual flippers are ever reported, partly out of ignorance.
The Supreme Court of the United States agreed with you on that point - along with every state governor.
Only in the remarkably uncivilized states that impose a -shudder- sales tax.
Nope, that's called the cost of doing business. Paypal is not a charitable organization. They charge fees for their services, so when money passes through them you can expect to pay something for that service.
Every other credit card processing agreement charges roughly 2.75% on the full charge, not the total before taxes.
In the final analysis the taxman almost invariably prevails when it comes to how something is classified for tax purposes. My own opinion on it wouldn’t count for much either way.
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