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ebay letter #3041409
05/11/22 08:45 AM
05/11/22 08:45 AM
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United Socialist States of Ame...
T
tboomer Online work OP
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Did anyone get this from ebay??

eBay
Hi Ted
You may have heard about a new tax law that went into effect this year. We believe this new regulation just doesn’t make sense. It creates confusing and unnecessary paperwork for millions of casual sellers on eBay, who will now receive tax forms even when they don’t owe taxes.

To help support our sellers, we’ve been working to put pressure on Congress by bringing our community together to make their voices heard. We need sellers like you to speak out today and tell Congress to act in the interest of sellers across the US.

Here’s what’s happening

Companies like eBay are required to report sales to the IRS using a tax form called a 1099-K. Until recently, you would only get a 1099-K if you sold over $20,000, or more than 200 items. Starting this year, new legislation has lowered that threshold to just $600, even if that was from a single sale all year. Where it gets complicated is you’ll get this form even if you don’t owe anything, because not all sales are taxable–for example, if you sell something for less than you paid for it. That means millions of sellers will now get unnecessary tax forms, creating confusion and pointless paperwork–both for the IRS, and for small-time sellers who aren’t set up to deal with it.

Imagine selling an old bike for $800 that cost you $1,500 a few years ago. Since you didn’t make a profit, the IRS doesn’t consider that taxable income. But under this new law, you’re still going to get a 1099-K. And now you’ll have to prove to the IRS that you don’t actually owe any taxes on that sale, which makes for complicated accounting work.

Here’s what you can do

We’re asking our community to take action today. Recently, new legislation was introduced in Congress to raise the threshold and limit the number of sellers getting these unnecessary forms. But we need your support to make sure it will pass!

Go to our eBay Main Street website and tell Congress to act now to support Americans selling online. It will only take a few minutes, and if we succeed, it can save you, and millions of other sellers the hassle of needless tax forms for years to come.

Speak out today ➔


We’re committed to making sure all our sellers are set up for success, and will continue to keep you updated. Look for emails and alerts from us that will help explain what’s changed, and what you may need to do next. In the meantime, you can learn more in our FAQ about Form 1099-K and how it affects you.

Thanks for being part of the eBay community.


The end is near.....
Re: ebay letter [Re: tboomer] #3041413
05/11/22 08:59 AM
05/11/22 08:59 AM
Joined: Nov 2003
Posts: 10,228
Colleyville
3hundred Offline
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Originally Posted by tboomer
Did anyone get this from ebay??


I didn't, but I don't sell on eBay either. And NEVER will as long as the government regards monetizing every no longer needed asset I want to get rid of as a "profit", never even considering inflation. How about that bike I paid $200 for in 1980 I'd be lucky to get $100 for today, did I "profit" $100? Receipt? laugh2 You MUST be kidding. I'll throw it out first.

It appears to be legitimate linky


'68 Fury Convertible
'69 300 Convertible
'15 Durango 5.7 Hemi
'16 300 S Hemi
Re: ebay letter [Re: 3hundred] #3041415
05/11/22 09:07 AM
05/11/22 09:07 AM
Joined: Jan 2003
Posts: 15,500
Norwich CT USA
moparts Offline
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Quote
Imagine selling an old bike for $800 that cost you $1,500 a few years ago. Since you didn’t make a profit, the IRS doesn’t consider that taxable income. But under this new law, you’re still going to get a 1099-K. And now you’ll have to prove to the IRS that you don’t actually owe any taxes on that sale, which makes for complicated accounting work.


Ebay, Face Book Marketplace and PayPal all are stuck with this reporting to the IRS

And since IRS will still consider your sales as as a hobby you will not be able to show a loss , so from a tax stand point it will be a mess


Tom ,

2011 Ram 3500 C&C Diesel
2009 Challenger R/T
1971 Challenger Conv. 511/4 speed
1970 Challenger R/T 503/727


Re: ebay letter [Re: moparts] #3041427
05/11/22 10:14 AM
05/11/22 10:14 AM
Joined: Jan 2003
Posts: 21,599
San Jose,CA
migsBIG Offline
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Thank you for postin tat info. I sent my letter and let them know they are being bad representatives by making laws like this.

Re: ebay letter [Re: moparts] #3041430
05/11/22 10:28 AM
05/11/22 10:28 AM
Joined: Jan 2005
Posts: 8,340
Crook County, ILL
Mastershake340 Online content
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I imagine platforms like ebay are really feeling it in the bottom line as many former sellers are now considering it way more trouble than it's worth to sell their clutter on these sites. I already had stopped listing items there by a few years ago with their ever rising fees and other small seller hurting changes.
They were already shooting themselves in the foot and then the government put another round there!
Their stock is down over 25% so far this year.

ebay.JPG
Re: ebay letter [Re: Mastershake340] #3041434
05/11/22 10:48 AM
05/11/22 10:48 AM
Joined: Jan 2003
Posts: 25,851
United Socialist States of Ame...
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tboomer Online work OP
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I filled out the form on e-bag and just got two canned replies from our state senators. I will not go any further as it would break the political rules in the general forum wave


The end is near.....
Re: ebay letter [Re: tboomer] #3041439
05/11/22 11:12 AM
05/11/22 11:12 AM
Joined: Feb 2004
Posts: 34,830
S.E. South Dakota !
bigdad Offline
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If you deposit more than $600 into you bank in the form of cash the bank has to report that too now I believe


The lips of fools bring them strife, and their mouths invite a beating.Proverbs 18:6
Re: ebay letter [Re: bigdad] #3041442
05/11/22 11:31 AM
05/11/22 11:31 AM
Joined: Jan 2003
Posts: 25,851
United Socialist States of Ame...
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tboomer Online work OP
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No kidding? I will call my bank and find out. I have been selling some personal items and I have a couple of high dollar guitars left...


The end is near.....
Re: ebay letter [Re: bigdad] #3041445
05/11/22 11:40 AM
05/11/22 11:40 AM
Joined: Jan 2005
Posts: 8,340
Crook County, ILL
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Originally Posted by bigdad
If you deposit more than $600 into you bank in the form of cash the bank has to report that too now I believe

At least they aren't sending you a tax form in January that you have to report the numbers from and justify, or else pay tax on to the IRS....yet

Re: ebay letter [Re: Mastershake340] #3041449
05/11/22 11:50 AM
05/11/22 11:50 AM
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S.E. South Dakota !
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The lips of fools bring them strife, and their mouths invite a beating.Proverbs 18:6
Re: ebay letter [Re: bigdad] #3041450
05/11/22 11:51 AM
05/11/22 11:51 AM
Joined: Feb 2004
Posts: 34,830
S.E. South Dakota !
bigdad Offline
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The lips of fools bring them strife, and their mouths invite a beating.Proverbs 18:6
Re: ebay letter [Re: tboomer] #3041451
05/11/22 11:55 AM
05/11/22 11:55 AM
Joined: Jan 2003
Posts: 17,801
S.E. Michigan
ZIPPY Offline
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I quit selling on ebay some time ago, back when they required direct access to a bank account, because I figured this kind of thing was coming.

It was a shame b/c things were going really good, but paypal was already too intrusive, and ebay just went too far.

They have wanted to do this kind of stuff for decades and finally got around to it.

So, for ebay, the only way to use it to my advantage is to buy but not sell.
And I will send Paypal funds to those who need it, but I won't receive paypal funds.

Stupid to go through that, but I'll sell locally for cash every time instead of all this stuff, if that's what it comes down to.





Rich H.

Esse Quam Videri




Re: ebay letter [Re: moparts] #3041472
05/11/22 12:45 PM
05/11/22 12:45 PM
Joined: Jul 2003
Posts: 3,267
Connecticut
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Originally Posted by moparts
Quote
Imagine selling an old bike for $800 that cost you $1,500 a few years ago. Since you didn’t make a profit, the IRS doesn’t consider that taxable income. But under this new law, you’re still going to get a 1099-K. And now you’ll have to prove to the IRS that you don’t actually owe any taxes on that sale, which makes for complicated accounting work.


Ebay, Face Book Marketplace and PayPal all are stuck with this reporting to the IRS

And since IRS will still consider your sales as as a hobby you will not be able to show a loss , so from a tax stand point it will be a mess



You can write-off losses and depreciation on items you’ve sold. Tricky, but it can be done.

Is this the next step: Will the IRS bother Moparts because they have classified ads?


China is the enemy.
Re: ebay letter [Re: Mastershake340] #3041488
05/11/22 01:11 PM
05/11/22 01:11 PM
Joined: Dec 2021
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Loudoun County, VA
Brad_Haak Offline
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Originally Posted by Mastershake340
Originally Posted by bigdad
If you deposit more than $600 into you bank in the form of cash the bank has to report that too now I believe

At least they aren't sending you a tax form in January that you have to report the numbers from and justify, or else pay tax on to the IRS....yet

You mean like PayPal does already?


2021 Challenger 6.4L Scat Pack 1320 (2022)
100% stock: 1.680, 11.894 at 113.75 (DA 175 ft)
wheels, tires, air filter: 1.714, 11.833 at 115.80 (DA 310 ft)

1973 Challenger 452 ci street/strip (2008)
pump gas, DOT radials: 1.454, 10.523 at 126.44 (DA 514 ft)
Re: ebay letter [Re: 1972CudaV21] #3041489
05/11/22 01:13 PM
05/11/22 01:13 PM
Joined: Jan 2003
Posts: 1,635
PA
7
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Originally Posted by 1972CudaV21


You can write-off losses and depreciation on items you’ve sold. Tricky, but it can be done.





Yes. you can calculate your cost basis for the items you sell, but who keeps the receipt to show how much they originally paid for that bike they bought 25 years ago, and who wants to go through the hassle of the book keeping for such sales? That item you bought at the yard sale for $100 cash and sold on ebay for $200. Do you have a receipt for the $100? If not the IRS says you pay tax on the full $200 since if you get audited and you can't produce a receipt, you can't claim the proper cost basis.

I quit selling on ebay back in February because I was very close to the $600 limit and I'm not dealing with a K-1 come tax time.

And, as far as that letter is concerned, ebay is the one with the deep pockets. Perhaps they need to do some good old political lobbying instead of leaning on their customers for help. Ebay has deteriorated every year over the last decade and I don't really care what happens to them at this point.


Re: ebay letter [Re: Brad_Haak] #3041496
05/11/22 01:27 PM
05/11/22 01:27 PM
Joined: Dec 2021
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Loudoun County, VA
Brad_Haak Offline
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You guys know that all this was triggered many years ago when state and local governments saw they were losing their expected tax income from local sales & services to online sales from out of state businesses where people weren't paying any taxes, right?

So, if you want your roads paved and your police paid... and the original source of the funds has dried up or decreased dramatically due to massive increases in online sales w/o taxes, what's the solution? Make the online vendors collect and submit the taxes, or raise your local taxes (again) on something that can't be side-stepped... like your property taxes.

Not saying I like the solution, but it certainly makes sense. And the interesting thing -- well, I think it's interesting -- is the first person I heard get on a soapbox about needing to tax online sales was the owner of a local speedshop who is no longer in business. And this was at least 20 years ago when he was going off about it.


2021 Challenger 6.4L Scat Pack 1320 (2022)
100% stock: 1.680, 11.894 at 113.75 (DA 175 ft)
wheels, tires, air filter: 1.714, 11.833 at 115.80 (DA 310 ft)

1973 Challenger 452 ci street/strip (2008)
pump gas, DOT radials: 1.454, 10.523 at 126.44 (DA 514 ft)
Re: ebay letter [Re: Brad_Haak] #3041501
05/11/22 01:39 PM
05/11/22 01:39 PM
Joined: Jan 2005
Posts: 8,340
Crook County, ILL
Mastershake340 Online content
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Originally Posted by Brad_Haak
Originally Posted by Mastershake340
Originally Posted by bigdad
If you deposit more than $600 into you bank in the form of cash the bank has to report that too now I believe

At least they aren't sending you a tax form in January that you have to report the numbers from and justify, or else pay tax on to the IRS....yet

You mean like PayPal does already?

Of course, what’s your point? shruggy

Re: ebay letter [Re: Mastershake340] #3041518
05/11/22 02:26 PM
05/11/22 02:26 PM
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S.E. South Dakota !
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Our dirtbag governor started the whole process of collecting taxes ..he is gone now but, that's where it all came from

https://apnews.com/article/146e7b6402444130865655a623920fff


The lips of fools bring them strife, and their mouths invite a beating.Proverbs 18:6
Re: ebay letter [Re: bigdad] #3041526
05/11/22 02:50 PM
05/11/22 02:50 PM
Joined: Jan 2003
Posts: 10,486
Freeport IL USA
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Like anything government related, upset customers carry more weight then upset companies.
They know you are mad, they just want you to tell the government you are mad.

For the record, calling your congress people at the Washington DC switchboard office has more of an effect then sending them a letter. The letters get filed in the circular file unless it is something they agree with, or if you request a response. If you request a response, you get the generic letter that doesn't mean squat.
If you call the DC switchboard, all those calls are recorded and counted, so be NICE, and tell them what you don't like.

Re: ebay letter [Re: bigdad] #3041528
05/11/22 02:50 PM
05/11/22 02:50 PM
Joined: Jan 2005
Posts: 8,340
Crook County, ILL
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I got a 1099K from Paypal for 2020 for around $2000. From what I was told later when I mentioned that, I was told several states including my garbage state required this reporting a year earlier. I had no records to back up what I paid for items I'd sold, some payments were from a friend who paid me several times over the years and I hadn't noticed he'd neglected to select friends and family for the funds he sent me.
I stressed about it when doing my taxes, and reported a few hundred of those payments as profits just to be on the safe side even though I am not sure any of that $2000 was actually profit. I learned my lesson, I didn't get a 1099 from Paypal for 2021, because I am wary of selling anything any more. Which is too bad as I still have stuff I'd like to get rid of, but it has become more trouble than it is worth.
I can agree that it is wrong that some people have been running profitable businesses and cheating on their taxes on their sales, and this new move may help crack down on that. But the net was cast too wide and really caused a lot of problems for many people who just want to do what is the equivalent as have a garage sale.

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