Discussion in 'Coin Chat' started by TopcatCoin, Apr 12, 2021.
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eBay is collecting state taxes.
Yes, I would always report these sales on Form 8949 (Sales and Other Dispositions of Capital Assets and Schedule D (Capital Gains and Losses). I believe this revised federal tax policy is part of the new Cares Act.
Ebay is collecting and remitting state SALES tax. The 1099 will also be reported to your state, so the sale would also be taxable by them as well.
the 1099K as I understand it, the 3rd party transaction platform must generate a 1099K and send a copy to you or the IRS for any transaction above $600.
You will report it with your income when you file your taxes, however like any business, you can subtract your expenses from to show only the profit/income, and if your costs exceed your business income for the year, you can subtract your loss there from your other income that is taxable.
or,,, I suppose with a collectible of high value, or selling as a hobby and not a business, it could be treated as a capital gain.
IF your sales are like a garage sale, selling your old stuff you own, there is no reason to report it, as you are likely taking a loss on the items, not a profit. It's depreciated over time in most cases and the few you profit on get outweighed by the ones you don't profit on.
Look I'm going to be honest here, this is to give these platforms hoops to jump through for reporting, and to also catch the people that aren't playing it straight and slipping under the radar.
if you are a business and selling on Ebay, and you are legit, you are paying the taxes owed, or using expenses to offset.
If you are a dude selling some things you own in a pinch to make a few extra quick bucks, again likely not a problem.
if you are "flipping" items, or going to thrift stores and buying things cheap and selling higher to profit, and NOT paying taxes on the profit, then you're probably going to have a bad time.
It's designed so that The IRS can see what you are doing on the side and if you are reporting the income or not. there's people staying below the 20K and 200 transaction threshold, using the loophole that was there and not paying taxes on the income, but more importantly, not reporting it, and since Ebay or whoever doesn't have to report it below that mark, the IRS has no idea who they are that are dodging it.
Safest to assume that. This is why benjamins in your wallet and transactions taking place at places like shows is handy. No need to have complete paper trails for something the government may have in interest in down the road. As long as no laws are broken today, and I am not aware of legal reporting requirements if you buy pm yet, (unlike stuff like bitcoins), I am in my rights to keep it confidential.
I wonder if Coin Talk will ever be compelled to issue these 1099s. Just a thought.
It's good to live in a state that has no state income tax.
Yours are technically Capital Gains, which likely apply to most of the selling CT readership, but there will be exceptions . . . if operating profitably for most years, and able to justifiably demonstrate business status, one may instead be able to file a Schedule C for a sole proprietorship.
I'm of the same mind . . . my books actually went to the accountant at lunchtime today. Just about one more month to the deadline.
Not as presently structured. The reason? Because, unlike eBay, USACoinBook, Etsy, and other websites which get their paws into transactions for a share of the proceeds, CT doesn't have sufficient knowledge about which transactions take place, and for how much.
I already closed my eBay store back in February, so this doesn't really bother me at all. Actually, it makes me smile . . . just a little.
But, I bet most states have sales tax auditors for in state sales as well as out of state sales. When I do my North Carolina State Income Tax, I use H & R Block, because they are the easiest to use, but there is a question that asks if you paid sales tax on out of state purchases, and if not, you had better answer truthfully because they have something in their arsenal of computers that can track out of state purchases. Amazon collects North Carolina sales tax at 7.5%.
Separate names with a comma.