eBay taxable income asset disposition.

[Justdog]

Is there anyone around that is dealing with their sales being scrutinized now by taxation of sales being considered income?
Recently eBay has notification of SS number registration for taxation of sales over a certain threshold.
Sounds like a pretty big net being cast over small sellers of their own goods they collected, not super sellers.
Chime in with any info.

 

[jeepTj98]

Is there anyone around that is dealing with their sales being scrutinized now by taxation of sales being considered income?
Recently eBay has notification of SS number registration for taxation of sales over a certain threshold.
Sounds like a pretty big net being cast over small sellers of their own goods they collected, not super sellers.
Chime in with any info.

Is there anyone around that is dealing with their sales being scrutinized now by taxation of sales being considered income?
Recently eBay has notification of SS number registration for taxation of sales over a certain threshold.
Sounds like a pretty big net being cast over small sellers of their own goods they collected, not super sellers.
Chime in with any info.

That started several years ago and it really pisses me off!! I bought many jackets and resold them years later. I had to claim that money as income because I didn’t buy and sell them the same year… it’s ridiculous!! However it could have been worse. Elizabeth Warren could have been elected president. She wanted to impose some kind of tax on everything in our homes that what they considered valuable. That’s socialism for ya!

 

[Guppy]

Income, less expenses. Almost everything sold as used goods is sold at a loss due to the depreciation plus ebay fees.

 

[herculance]

Income, less expenses. Almost everything sold as used goods is sold at a loss due to the depreciation plus ebay fees.

yeah for personal items usually sold at a loss, these aren't taxable. I guess it's also a matter of documentation of purchase date/purchase cost which can get tricky if you bought the item a long time ago.

You also can't depreciate personal-use items like clothes and can only do so for income-generating long term assets (except land)

 

[Kunja]

This is why PayPay friends/family is preferred. Those funds are (so far) not taxed here in the US, but anything received as goods and services over (I think) $600 in a year will incur an IRS 1099, and you'll have to defend yourself and document why its not taxable.

 

[Igneous629]

I started a spreadsheet with all the clothes that I buy just in case I sell them and need documentation later. If it’s a really big purchase, I will link a receipt with Google Drive to the spreadsheet.

 

[jeepTj98]

This is why PayPay friends/family is preferred. Those funds are (so far) not taxed here in the US, but anything received as goods and services over (I think) $600 in a year will incur an IRS 1099, and you'll have to defend yourself and document why its not taxable.

Tax code is changing and may continue to change. Bill just passed no tax on tips, no tax on overtime and the long term goal is no tax on income below 150k

 

[Justdog]

That started several years ago and it really pisses me off!! I bought many jackets and resold them years later. I had to claim that money as income because I didn’t buy and sell them the same year… it’s ridiculous!! However it could have been worse. Elizabeth Warren could have been elected president. She wanted to impose some kind of tax on everything in our homes that what they considered valuable. That’s socialism for ya!

Yeah that's what I can't fathom is tax was already paid for one thing then it's now taxed as a purchase then you have to declare tat as income, even if you are selling at a loss, so advice was to get an accountant and keep all expenses, packaging etc and then I suppose have some proof of market value.
It's horrendous, no wonder people have sympathy for Randy Weaver.
And I just read that collections are taxed more.
This comes at a time now that anything over 800 dollars regardless of age will be subject to a tariff.
WTF
Thanks for your reply.
I have a Stetson 100 with case to sell and now the new pure beaver Stetson are 700 dollars for retail up from 450 3 years ago.
Capital gains is what they are calling it on asset disposition.

 

[Justdog]

Tax code is changing and may continue to change. Bill just passed no tax on tips, no tax on overtime and the long term goal is no tax on income below 150k

Wouldn't that be nice.

 

[Justdog]

I started a spreadsheet with all the clothes that I buy just in case I sell them and need documentation later. If it’s a really big purchase, I will link a receipt with Google Drive to the spreadsheet.

Smart but how do you evaluate a collection over 25 years and now selling it in some case below the market value.

 

[Justdog]

yeah for personal items usually sold at a loss, these aren't taxable. I guess it's also a matter of documentation of purchase date/purchase cost which can get tricky if you bought the item a long time ago.

You also can't depreciate personal-use items like clothes and can only do so for income-generating long term assets (except land)

Wow that ridiculous on used items.
Like to know who the genius is that goes after garage sales.

 

[Justdog]

Income, less expenses. Almost everything sold as used goods is sold at a loss due to the depreciation plus ebay fees.

Guess you have to get an accountant to do that.

 

[Igneous629]

Smart but how do you evaluate a collection over 25 years and now selling it in some case below the market value.

I had to go back quite a few years, but not 25. PayPal keeps track up to 7 years.

 

[Igneous629]

Smart but how do you evaluate a collection over 25 years and now selling it in some case below the market value.

I would just make a best guess on the value at that point. Audits will be few and far between with major cuts to the IRS with this administration.

 

[Justdog]

I had to go back quite a few years, but not 25. PayPal keeps track up to 7 years.

Yeah I closed the account I collected from years ago and only started selling 2 years ago so this was a shock when my account got locked with a red banner saying you'll be subject to a fine if you do not provide an SS registration number for sales over the threshold.

 

[Igneous629]

Yeah I closed the account I collected from years ago and only started selling 2 years ago so this was a shock when my account got locked with a red banner saying you'll be subject to a fine if you do not provide an SS registration number for sales over the threshold.

Yea I would comply and make your best guess then… maybe an educated guess. I had 95 sales on eBay this year and didn’t know I’d have to do this…. Not fun but now I know for next year that if I make a gain I have to pay income tax.

 

[Justdog]

It's the surprise and the retroactivity that is absurd.