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<p>[QUOTE="John Burgess, post: 7404262, member: 105098"]States have been pushing to collect sales tax for online sales across state lines, most interstate purchases I'm doing involve tax, more so this year, but also last year. Heck, I was reselling for a while and the State got wind of 40 or 50 TVs I was bringing into the state from New York, that I got a good deal on, and they audited me hoping to cash in on use tax that was owed. I have a resellers tax exempt certificate for my state, so as long as I sell the item, I don't pay tax to buy the item. anyways. They been trying to stop all the tax dodging in online sales and that's what that's all about.</p><p><br /></p><p>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.</p><p><br /></p><p>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. </p><p><br /></p><p>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.</p><p><br /></p><p>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.</p><p><br /></p><p>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. </p><p><br /></p><p>if you are a business and selling on Ebay, and you are legit, you are paying the taxes owed, or using expenses to offset. </p><p><br /></p><p>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. </p><p><br /></p><p>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. </p><p><br /></p><p>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.[/QUOTE]</p><p><br /></p>
[QUOTE="John Burgess, post: 7404262, member: 105098"]States have been pushing to collect sales tax for online sales across state lines, most interstate purchases I'm doing involve tax, more so this year, but also last year. Heck, I was reselling for a while and the State got wind of 40 or 50 TVs I was bringing into the state from New York, that I got a good deal on, and they audited me hoping to cash in on use tax that was owed. I have a resellers tax exempt certificate for my state, so as long as I sell the item, I don't pay tax to buy the item. anyways. They been trying to stop all the tax dodging in online sales and that's what that's all about. 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.[/QUOTE]
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