E Bay sellers beware

https://www.wsj.com/articles/you-ma...e-irs-will-know-11650015000?mod=hp_listc_pos1

 

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https://www.cointalk.com/threads/ebay-tax-reporting-changes.378884/

 

This will be bad for eBay's bottom line.
I have done a couple of thousand dollars in sales for several years now but that ends with this new rule. Too much paperwork to keep track of cost/profit.
The little bit of profit I make is not worth the extra added work. I'm sure I'm not the only seller on eBay that is probably done with it as well.

 

come on now guys the govt isn't dumb they see that online sales are huge and they want their share of the money made

and what better way then to hit the major online selling places like E-bay and such to get that share of the cash made

 

Yeah well one thing that bothers me is how (aside from a few marquee cases celebrated in the media) the IRS (and state and local authorities) tend to focus on the little guy. Whom frankly they can ruin with the cost of compliance alone. I can tell you stories!

Meanwhile my friend the mutual-fund manager makes eight figures and has never been audited once. They know full well he'll throw a slew of high-powered tax lawyers at them if they try. Sigh.

Separately, they already get a sizable chunk in sales taxes as well as taxes on eBay itself. Now I'm not saying people shouldnt declare and pay up properly. I'm just saying that the take can be onerous and again, the cost of compliance for the little guy is colossal. We can't amortize it over 100 or 1000 employees.

 

I'm confused. No surprise there . The government has proven they can and will print unlimited supplies of money (trillions upon trillions of dollars) whenever they please. With that action they've proven they don't need a dime of any tax money. Yet they keep collecting and raising our taxes.

Discuss.....

 

I didn't ask for it. I still haven't cashed or deposited the relief checks they sent me. And guess what I won't have to declare it either nor pay it back, that is and was the plan all along.

 

I deposited mine and didn't have to declare it or pay taxes on it.

 

That's not what I was informed of. Quite a bit of the relief that was sent out and received was help to get thru the hard times, Not just free money. I will have to do some research.
My neighbor, took money that paid her mortgage every month thru the Pandemic. What happened is all those payments got tacked on to the end of her mortgage.

 

Those relief checks aren't taxable. They're a gift you receive from the money you give them for taxes And what they print willy nilly.

 

You were misinformed.

 

different

 

Correct. One was called economic stimulus (free newly printed moolah).
The mortgage subsidy was just a deferment for hard times.

 

Absolutely correct. In fact, you may well receive a letter a letter from the IRS as I did stating explicitly how much they sent you and that it is NOT TAXABLE and does NOT have to be added as taxable income on your return.

Now, having said that, the IRS is going after people who received stimulus checks who did not qualify in whole or in part for the stimulus money. This was usually the result of having made too much money and receiving the stimulus check by mistake. Some of those people are getting dunned for a claw-back. By that I mean the IRS is not taxing the amount but demanding the restitution of the full amount or the portion that the person was not entitled to.

 

Regarding the new law and the implementing IRS regulation on the $600 threshold for 1099k reporting: That $600 threshold got put into the law from a prior law dating from the 1950s (copy and paste) and was not adjusted to account for inflation. It it had been adjusted, the equivalent value would be about $6000.

There are some proposals being bruited about in the lobbying arena and the halls of Congress to make that adjustment. But even if the law is amended, it won't happen in time to prevent the roll-out this year.

The whole purpose of this change was to collect some portion of the taxes due on the IRS-estimated $245 billion in unreported taxes. Whether you believe that number or not, that's the purpose and our elected representatives said "yes" to it.

The above is excerpted from a WSJ article April 16 by Laura Sanders "The IRS Gets a Cut of Your Online Gig". I don't know if the link will work since it may be behind the paywall.

You Made $700 From an Online Side Hustle. Now the IRS Will Know. - WSJ

I believe there is a pretty significant amount of tax dodging in this country and it is by no means all within the "fat cat" community. I hear of it all the time from friends and acquaintances even when they don't know they are doing it. But many do and brag about it.

For example, all of us coin collectors (not actual dealers that operate as a legitimate business and file taxes as such) know that we are supposed to file and pay a 28% capital gains tax when we sell a collectible coin for more than we paid for it. Right? We all know that, don't we? Now, how many actually do file it and pay it?

 

He does pay a lot in taxes,he whines about it all the time. But I have always paid more than 30% of my income in taxes, and I was never well-paid. 30% federal, 15% self-employment tax, 9% state and local, then property and sales taxes, etc etc. It can really add up.

Nick Lowe lyric: "Once I was a tax man, collecting dollars and dimes. I heard the rich man grumble, I heard the poor man cry." Oh yeah: tomorrow's tax day.