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Re: ebay letter [Re: Mastershake340] #3041532
05/11/22 03:09 PM
05/11/22 03:09 PM
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Oregon
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AndyF Offline
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The IRS is already overwhelmed so next year when they start getting a bunch of low dollar transactions to track they'll too buried to see straight.

I don't know if it will impact me or not. I have a few customers who pay with PayPal but I track all of that in my own books so I don't think it will matter if PayPal sends me a 1099. It should just match what I already have on my books. I can see how this rule change would blow up a side gig that someone had going. The people who are going to be really annoyed are the ones who sell one high dollar item on PayPal but have no paperwork on what they paid for it. If it was me I'd probably ignore the 1099 unless it was for a bunch of money. Be interesting to see if the IRS actually dings anyone for selling a $600 used car part.

Re: ebay letter [Re: Mastershake340] #3041534
05/11/22 03:14 PM
05/11/22 03:14 PM
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Minneapolis, MN
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hemi70se Offline
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What is this about Facebook sending 1099K's? I don't think you are correct. It's all supposed to be about 3rd party money transfers. I have discontinued using Paypal and Venmo. I have listed a few items on Facebook but if I sell it I usually remark that it was sold elsewhere so I don't have to deal with the feedback hassle.

Re: ebay letter [Re: hemi70se] #3041555
05/11/22 04:09 PM
05/11/22 04:09 PM
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Connecticut
1972CudaV21 Offline
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Originally Posted by hemi70se
What is this about Facebook sending 1099K's? I don't think you are correct. It's all supposed to be about 3rd party money transfers. I have discontinued using Paypal and Venmo. I have listed a few items on Facebook but if I sell it I usually remark that it was sold elsewhere so I don't have to deal with the feedback hassle.


On Facebook, if you sell an item for over $600.00, you will receive a 1099 for the sale. My advice: Do not ship the item on FB, do not pay anything to FB to enhance the ad, nor indicate that it is “sold” on FB. Instead, only sell locally for cash and delete the advertisement immediately after selling. Beyond this, you could list it on CL and direct potential buyers to contact you on CL or to selling sites like this one.


China is the enemy.
Re: ebay letter [Re: AndyF] #3041560
05/11/22 04:24 PM
05/11/22 04:24 PM
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Loudoun County, VA
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Brad_Haak Offline
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Originally Posted by AndyF
If it was me I'd probably ignore the 1099 unless it was for a bunch of money. Be interesting to see if the IRS actually dings anyone for selling a $600 used car part.

Funny you mention this... cuz reading this thread reminded me that my PP 1099 for a few parts sales may not have been factored into the 2021 filing. whistling

Re: ebay letter [Re: Mastershake340] #3041561
05/11/22 04:34 PM
05/11/22 04:34 PM
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Loudoun County, VA
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Originally Posted by Mastershake340
... I am wary of selling anything any more...

Understood. I don't want to sell w/ PP any longer cuz of this 1099 PITA, and I don't sell on eBarf any longer cuz their fees, etc., are "disincentives".

Re: ebay letter [Re: Brad_Haak] #3041575
05/11/22 05:20 PM
05/11/22 05:20 PM
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Tucson AZ,
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MadMopars Offline
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The fact remains, Ebay has a broad reach and as a result generally seems to net quicker sells at higher prices. Granted, the fees do cut into profits but price it accordingly. Much like taking home a paycheck the fact remains, if you're making money, you're getting taxed. Does it suck for the little guy? Sure. Did some abuse the system and screw it up for everyone? Sure. However, if you think your going to make money with these items rotting in the garage, it's never gonna happen. twocents

Re: ebay letter [Re: MadMopars] #3041589
05/11/22 05:58 PM
05/11/22 05:58 PM
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Kalispell Mt.
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HotRodDave Offline
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Originally Posted by MadMopars
The fact remains, Ebay has a broad reach and as a result generally seems to net quicker sells at higher prices. Granted, the fees do cut into profits but price it accordingly. Much like taking home a paycheck the fact remains, if you're making money, you're getting taxed. Does it suck for the little guy? Sure. Did some abuse the system and screw it up for everyone? Sure. However, if you think your going to make money with these items rotting in the garage, it's never gonna happen. twocents


Between the fees and now taxes and associated time and headache is it really getting you that much more for your junk?

This is just one more thing putting a damper on the already stalled economy, less people selling stuff because it ain't worth the hassle means we all have less money so we buy less stuff and it just circles the drain.


I am not causing global warming, I am just trying to hold off a impending Ice Age!



Re: ebay letter [Re: Brad_Haak] #3041591
05/11/22 06:11 PM
05/11/22 06:11 PM
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Crook County, ILL
Mastershake340 Offline
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Originally Posted by Brad_Haak
Originally Posted by Mastershake340
... I am wary of selling anything any more...

Understood. I don't want to sell w/ PP any longer cuz of this 1099 PITA, and I don't sell on eBarf any longer cuz their fees, etc., are "disincentives".

Yes it’s very frustrating, I’ve lived in the same house for 30 years and have gathered a few million things during that time. I’m happy to pay eBay or whomever a % to find a buyer, I don’t need a big tax headache and stress from a 1099. Nor should I have to, I’m not selling stuff to make a living. I have a good paying full time job and investments so I pay more taxes than most Americans. For years we took things like ebay for granted, I sold a few hundred items there from 2002 until a few years ago. Now I don’t know where to go to get rid of much of what I still have. Car parts, I can list on car sites like here. Other types of stuff, I’m now sol.
“You don’t know what you got, until it’s gone” a song once said. Glad I was able to find new homes for many things while I had the chance, I wish I’d been more ambitious and got rid of more and would have had I known what the future held.

Re: ebay letter [Re: Brad_Haak] #3041594
05/11/22 06:31 PM
05/11/22 06:31 PM
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Oregon
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Originally Posted by Brad_Haak
Originally Posted by AndyF
If it was me I'd probably ignore the 1099 unless it was for a bunch of money. Be interesting to see if the IRS actually dings anyone for selling a $600 used car part.

Funny you mention this... cuz reading this thread reminded me that my PP 1099 for a few parts sales may not have been factored into the 2021 filing. whistling


I'm not sure anyone knows how the IRS is going to handle this. They'll get flooded with these low dollar amount 1099's that don't match the 1040 info and then I don't know what they'll do. They don't have the bandwidth to make a federal case out of every missing 1099 form. They might send automated letters requesting information or something like that.

I'm not sure what I'll do when I report income since only a small number of my customers pay with PayPal. So I'll get a 1099 form that doesn't match what I report as income and there will not be an easy way to reconcile. It is basically just random information that will confuse the issue of income reporting. My guess is after a couple of cycles of this the politicians will hear enough that they'll make some changes. Maybe raise the limit back up to $10,000 or something like that.

Re: ebay letter [Re: Mastershake340] #3041595
05/11/22 06:32 PM
05/11/22 06:32 PM
Joined: Jul 2003
Posts: 3,148
Connecticut
1972CudaV21 Offline
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Connecticut
Originally Posted by Mastershake340
Originally Posted by Brad_Haak
Originally Posted by Mastershake340
... I am wary of selling anything any more...

Understood. I don't want to sell w/ PP any longer cuz of this 1099 PITA, and I don't sell on eBarf any longer cuz their fees, etc., are "disincentives".

Yes it’s very frustrating, I’ve lived in the same house for 30 years and have gathered a few million things during that time. I’m happy to pay eBay or whomever a % to find a buyer, I don’t need a big tax headache and stress from a 1099. Nor should I have to, I’m not selling stuff to make a living. I have a good paying full time job and investments so I pay more taxes than most Americans. For years we took things like ebay for granted, I sold a few hundred items there from 2002 until a few years ago. Now I don’t know where to go to get rid of much of what I still have. Car parts, I can list on car sites like here. Other types of stuff, I’m now sol.
“You don’t know what you got, until it’s gone” a song once said. Glad I was able to find new homes for many things while I had the chance, I wish I’d been more ambitious and got rid of more and would have had I known what the future held.


There has to be a new way to sell things without government interference. If you bought an intake 20 years ago for $100.00 and sell today for $100.00, it’s not fair for the government to tax it IMO. I have some ideas, but I’m not ready to discuss here.


China is the enemy.
Re: ebay letter [Re: 1972CudaV21] #3041620
05/11/22 07:51 PM
05/11/22 07:51 PM
Joined: Jan 2003
Posts: 18,004
Eagle, Idaho
Neil Offline
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Eagle, Idaho
Exactly, Used stuff should not cost the seller any tax as you already paid it.

I use Ebay for buying way more than selling. Their fees are absurd now + you get strange people on there who pay slow and leave no feedback ect.

If you sell stuff on CL, or the swap meets, for too cheap flippers or local hoarders grab it that is no good either. Lots of the local Mopar project cars and desirable parts are being held hostage by a handful of older guys who are waiting for the prices to keep going up so they can make $$$ later. They grab deals and then just put the stuff on the shelf until the price far exceeds what they paid for it.

Re: ebay letter [Re: Neil] #3041626
05/11/22 08:28 PM
05/11/22 08:28 PM
Joined: Jun 2003
Posts: 3,141
Southern Maryland
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Pretty much looks to me that most folks have quit selling on Ebay. Only "companies" on there now. For cars it usuallyisn't there car,just some showroom selling cars way overpriced for others.


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Re: ebay letter [Re: klunick] #3041636
05/11/22 08:53 PM
05/11/22 08:53 PM
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sw michigan
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TB3CUDA Offline
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sw michigan
sounds like craigslists will pick up with adds now.i got the ebay notice,like everyone else quit selling on there a while back,and facebook isnt much better,even sites like moparts and forbbodiesonly,can have its problems,next swapmeets will want your sales info for the day,didnt laysons get arrested in pa over something like this a few years ago?

Re: ebay letter [Re: TB3CUDA] #3041641
05/11/22 09:21 PM
05/11/22 09:21 PM
Joined: Jan 2003
Posts: 18,004
Eagle, Idaho
Neil Offline
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They were selling parts with Chrysler part numbers without permission I think. Told not to and kept going anyways.

Last edited by Neil; 05/11/22 09:21 PM.
Re: ebay letter [Re: Neil] #3041649
05/11/22 09:51 PM
05/11/22 09:51 PM
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Freeport IL USA
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Its not that hard to set up a part time business, and the benefits outweigh the effort. The business would pay the expenses involved with the sales, and that could end up reducing your overall taxable income.

Get hooked up with a good accountant and they can tell you what can legally be written off as expenses, and what is considered income. Then, when you get the Ebay form, you tell your accountant that "That is covered in my "income" section".

The next thing is, who cares what you paid for something 20 years ago? The government only wants to see a receipt that says you paid $$$ for something and see what you sold it for. You can buy receipt books pretty cheap. Its not hard to find an old receipt for something you may have bought last year and sold this year, for a profit or a loss. A receipt from Joe's Garage Sale for 'this item' for this 'amount' of cash is all you need. Its not your problem to remember where "Joe's Garage Sale" place was, you have the receipt for the part you sold. If the receipt from Joe's wasn't in your hand writing, it would probably be better.

Re: ebay letter [Re: tboomer] #3041651
05/11/22 09:57 PM
05/11/22 09:57 PM
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San Jose,CA
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Originally Posted by tboomer
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


I got 4 replies back, 3 from the same rep and the third reply was them showing actual concerns about this law.

Re: ebay letter [Re: bigdad] #3041652
05/11/22 10:00 PM
05/11/22 10:00 PM
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Omaha Ne
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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

That was overturned likely due to the banks had a bit more influence over our elected officials. I believe the limit is still 10K for a single transaction before a flag goes up. But i wouldn't test the waters by making too many high $$ deposits.
And yes I filled the letter out and spoke with my representatives. My understanding is EBay is still working very hard to get this overturned to a more reasonable number. The more that bi-ch th e more likely something will change twocents beer

Re: ebay letter [Re: AndyF] #3041684
05/11/22 11:36 PM
05/11/22 11:36 PM
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Someplace you aren't
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Originally Posted by AndyF
The IRS is already overwhelmed so next year when they start getting a bunch of low dollar transactions to track they'll too buried to see straight.

I don't know if it will impact me or not. I have a few customers who pay with PayPal but I track all of that in my own books so I don't think it will matter if PayPal sends me a 1099. It should just match what I already have on my books. I can see how this rule change would blow up a side gig that someone had going. The people who are going to be really annoyed are the ones who sell one high dollar item on PayPal but have no paperwork on what they paid for it. If it was me I'd probably ignore the 1099 unless it was for a bunch of money. Be interesting to see if the IRS actually dings anyone for selling a $600 used car part.


A 1099 of any sort will trigger an automated red flag if the numbers don’t match up to your return. It’s like a pseudo audit to start and you’ll need to respond in some way, which could be cutting a check for the amount they are seeing as not reported or explain it away with this receipt bs.


I want my fair share
Re: ebay letter [Re: SomeCarGuy] #3041690
05/11/22 11:52 PM
05/11/22 11:52 PM
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Posts: 20,163
San Jose,CA
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Creating a business would be a good starter, if you sell enough to be a business. For guys like me that sell maybe a couple or 3 parts a
Month to clear the yard or to help out older friends that don’t want to do computers Ana’s Craigslist, then it’s a waste of time. If you sell a bunch and decide to go the business route, you can then write off a bunch of stuff and can take 3 years of loses and be very limited on taxes then. Either way, $600 cap means the government is trying to, we’ll, affect the lower class income.

Re: ebay letter [Re: SomeCarGuy] #3041695
05/12/22 12:21 AM
05/12/22 12:21 AM
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Oregon
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Originally Posted by SomeCarGuy
Originally Posted by AndyF
The IRS is already overwhelmed so next year when they start getting a bunch of low dollar transactions to track they'll too buried to see straight.

I don't know if it will impact me or not. I have a few customers who pay with PayPal but I track all of that in my own books so I don't think it will matter if PayPal sends me a 1099. It should just match what I already have on my books. I can see how this rule change would blow up a side gig that someone had going. The people who are going to be really annoyed are the ones who sell one high dollar item on PayPal but have no paperwork on what they paid for it. If it was me I'd probably ignore the 1099 unless it was for a bunch of money. Be interesting to see if the IRS actually dings anyone for selling a $600 used car part.


A 1099 of any sort will trigger an automated red flag if the numbers don’t match up to your return. It’s like a pseudo audit to start and you’ll need to respond in some way, which could be cutting a check for the amount they are seeing as not reported or explain it away with this receipt bs.


If the IRS wants the returns to match the 1099 then they'll need to rewrite the return forms because right now there isn't a box for ebay or paypal income. So nothing is going to match unless they rewrite the forms.

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