Random eBay sales tax question

[Wilmingtonian]

Except that most of the civilized states do impose a sales tax. Last I heard there were something like only five states that didn’t have any.

A state cannot be both civilized and have a sales tax

 

[40Hz]

A state cannot be both civilized and have a sales tax

I suspect we’re drifting dangerously close to something that might be considered political with this side discussion. So rather than risk the ire of the mods you’ll have to forgive me for saying: An interesting topic. Nice chatting. I’m out.

 

[Wilmingtonian]

I suspect we’re drifting dangerously close to something that might be considered political with this side discussion. So rather than risk the ire of the mods you’ll have to forgive me for saying: An interesting topic. Nice chatting. I’m out.

Not political at all, I just bask in the smug glow of civility we enjoy in Delaware whenever state sales tax comes up. It is counter-balanced by the dismay I experience whenever some unfortunate event sees me opening my wallet outside the First State.

 

[MultiScaleMale]

Not political at all, I just bask in the smug glow of civility we enjoy in Delaware whenever state sales tax comes up. It is counter-balanced by the dismay I experience whenever some unfortunate event sees me opening my wallet outside the First State.

Delaware has a gross receipts tax rather than a state tax. There are circumstances where one or the other can be more beneficial. So your tax may not show up as a line item on the receipt you get at the counter, but it is going to be a part of the price you pay.

 

[buldog5151bass]

The states that provide services for it's people need to have a way to pay for it.

 

[Wilmingtonian]

The states that provide services for it's people need to have a way to pay for it.

We make Mexico pay for it!
Ok, you guys are taking me way to seriously. We don't have a sales tax and we like that. And whenever I see the topic come up I like to point that out, just for fun.
Edit: Also, you jelly

 

[obimark]

eBay is required to collect the tax due to state law. Picking up in person makes no difference. EBay is the middle man. When you used them, and agreed to purchase through them - by clicking ‘BUY’ - you agreed to pay the tax.
IF ... you are only going to check it out before you buy it - then you won’t pay anything before you go. But if you buy it - you MUST pay tax on it.
eBay is doing the sellers a favor by collecting the tax and sending it to the government, for them.

Why exactly are we being charged tax on used goods?

 

[spike42]

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.

Sadly, that appears to also be open to State interpretation - a few years back, Massachusetts and I believe
one other state (VT, perhaps) changed the rules, dropping the $20K to a mere $600. Yes, six hundred. Thus,
for the last two years, I have had to pay income tax on anything I may sell on ebay and/or Talkbass. I'm not
a business or a pro, so difficult to write things off - and even if I did you can only show a loss for so many
years.....gets way too complex for me.

Really does put the squash on selling stuff...although the GAS still gets the best of me sometimes. Thankfully
TB spares us the selling fees I'd be subject to on ebay/Reverb. But I try to list stuff for a fair price, and
I'm one of the old-school types still including shipping (shipbikes has been very helpful to that regard)....so
selling on the low end of the price range, paying Paypal fees on the sale price, then paying the shipping, and
then finally paying roughly 12% income tax on the net price come tax time makes this a very expensive hobby indeed.

I'm surprised that other states haven't followed suit.....while I never exceeded $20K annually, it's pretty
hard to stay under $600!

 

[Killing Floor]

This thread reminds me of a friend'o'mine who had a taste for a most delicious banquet beer...

What would Little Beaver do?

 

[MultiScaleMale]

Sadly, that appears to also be open to State interpretation - a few years back, Massaachusetts and I believe
one other state (VT, perhaps) changed the rules, dropping the $20K to a mere $600. Yes, six hundred. Thus,
for the last two years, I have had to pay income tax on anything I may sell on ebay and/or Talkbass. I'm not
a business or a pro, so difficult to write things off - and even if I did you can only show a loss for so many
years.....gets way too complex for me.

Really does put the squash on selling stuff...although the GAS still gets the best of me sometimes. Thankfully
TB spares us the selling fees I'd be subject to on ebay/Reverb. But I try to list stuff for a fair price, and
I'm one of the old-school types still including shipping (shipbikes has been very helpful to that regard)....so
selling on the low end of the price range, paying Paypal fees on the sale price, then paying the shipping, and
then finally paying roughly 12% income tax on the net price makes this a very expensive hobby indeed.

I'm surprised that other states haven't followed suit.....while I never exceeded $20K annually, it's pretty
hard to stay under $600!

Selling something isn't necessarily income. I buy a bass or $1200, sell it awhile later for $800, I didn't make any money off that. If I'm doing the Pawn Star thing and buying for $5k so I can sell for $10k, yeah, that's income. If you trade in a car, you don't pay tax on the trade-in value that you get with it considered income.

Sadly, that appears to also be open to State interpretation - a few years back, Massachusetts and I believe
one other state (VT, perhaps) changed the rules, dropping the $20K to a mere $600. Yes, six hundred. Thus,
for the last two years, I have had to pay income tax on anything I may sell on ebay and/or Talkbass. I'm not
a business or a pro, so difficult to write things off - and even if I did you can only show a loss for so many
years.....gets way too complex for me.

Really does put the squash on selling stuff...although the GAS still gets the best of me sometimes. Thankfully
TB spares us the selling fees I'd be subject to on ebay/Reverb. But I try to list stuff for a fair price, and
I'm one of the old-school types still including shipping (shipbikes has been very helpful to that regard)....so
selling on the low end of the price range, paying Paypal fees on the sale price, then paying the shipping, and
then finally paying roughly 12% income tax on the net price come tax time makes this a very expensive hobby indeed.

I'm surprised that other states haven't followed suit.....while I never exceeded $20K annually, it's pretty
hard to stay under $600!

As long as you’re selling for a loss, it’s not taxable.

Frequently asked questions about Form M-1099-K notices from third party sellers

 

[spike42]

Yes, this whole thing has caused much confusion and consternation since it went into effect. I really don't
know how MA got away with it, since the $20K is an IRS guideline. But unless you itemize, which I don't,
that 1099-K amount goes right to the ol' bottom line. And believe me, I ain't made a dime on any TB sales

 

[yodedude2]

seems i am better at losing money selling gear than i am at making it...

 

[beaglesandbass]

Question answered. Posts in here getting political, so closing.