Just got an email from Ebay to “Join them in urging Congress to raise the new tax reporting threshold” to more than $600. Ebay knows … they know what’s going to happen and it aint happy; (albeit uninformed) users.
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Yeah. eBay is going to get tons of emails from surprised people. Kind of funny they (eBay) are basically asking for a higher amount so people don’t take it out on them. It was Congress in March of 2021 that did it and eBay gets the brunt of what is coming.
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I feel bad for the eBay CS reps. Once the tax bills come, people are going to be yelling at them on the phone, not the IRS or Congress.
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I have to imagine it’s a lot of work for them to follow through with this as well. Higher threshold = less tattling on their end…
People are already tightening expenses…I really wonder what percentage of eBay sellers with over $600 in sales (the total of which includes what you collect for shipping and I believe what eBay collects for taxes from the buyer as well) are expecting a 1099.
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Congress reads Machiavelli as a guide book.
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“Grandma, I have something to tell you. Please don’t get upset. That $807 China we sold for you in June on Ebay; 28% has to go back to the government. That was additional income for you.” We’ll find a way financially, for you.
And if you don’t pay them, 1 of the new 87,000 IRS agents will take your sorry ass in.
But grandson, what about that young whippersnapper crypto Madoff guy I’ve seen on the news?
Don’t worry about him grandma. It was all legal.
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I continue to be glad I’ve kept extremely detailed records. You don’t mess with the IRS or Disney, they’ll mess you up.
I’ve done 8 small local shows this year.
I’ll be doing my 9th this Saturday.
I have been keeping impeccable cash only sales records. 
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If you deposit said cash into bank account, if you are ever audited, they’ll be asking for proof what or where that cash came from. You could end up paying taxes on it in such situations.
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I’m sure that’s all day every day already. Nobody calls non technical customer service when they’re happy… and I learned long ago, don’t take it out on these people. They got a shitty job already, it’s not directly their fault. They’re only there to try and help you. You called them and they likely have no direct involvement in why you are calling.
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Im aware of this.
What i take in does not see the bank.
Its used wherever and whenever cash is accepted.
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It’s not that bad. I have paid taxes the past 2 years. I just download all of my sales from eBay in Excel. Add a column for cost of goods (reconciles to receipts), etc.
The challenge is the record keeping/retention much more than the actual calculation.
I have found that the tax form from eBay doesn’t reconcile perfectly to total sales for the year (I.e. tax form slightly differs from the sales data I get from eBay seller portal). But it’s not a big difference and I base my taxable revenue from the eBay tax form (so it reconciles to IRS; and is a greater number than my sales data).
And in instances where I cannot find the receipt. I just assume zero cost and get taxed on the whole thing. I think I made about a 40% net margin last year after tax. Even accounting for the zero cost items.
I buy 99% of my collectibles online. So it makes the receipt retention a lot easier.
Oh. And if your eBay purchase history doesn’t go back that far. You can keyword search your email for historic eBay receipts. In general. Search email for stuff you cant find. Lots of receipts there!
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Yup. Just want to make sure others reading are aware. You’d be surprised at the amount who aren’t.
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I haven’t sold a comic online since Dec '20. I’m just waiting to see what is going to happen before I even consider it again.
One thing this has done for me is that it’s improved my collection tremendously! Most of my purchases are comics that will stay with me until I’m no longer around.
I’m curious to see the fallout in January and the uproar (if there is any) on the PoS’s that approved such a drastic change in reporting. And fret not all of you IRS tax white knights - I pay my taxes.
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Idk I have 25k in sales this year but over 40k in purchases for the year that I could call product purchased this year to sell. So I don’t think I’ll pay anything this year.
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Not tax advice but if you start counting stuff you buy (not just cost of what is sold) you need to start reporting inventory for future years as well and keep track of it all year over year I believe. I usually go with just what it costs for the stuff I actually sell (when I sell it).
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I believe if you count the cost of buying inventory in one year that can’t be deducted in the next. If I note a comic bought for $100 in 2022 and sell it for $200 in 2023, I have to just basically count the $200 with no deduction for what it cost as I counted it last year. I’m not a tax pro, but that is what a a tax person I’m using explained to me.