E Bay

[broker-len]

It was mentioned on this forum     that with the new E Bay policy they will reporting sales to  IRS-----------a lot of us sell stuff that we have purchased  some times for a profit---this opens up a new can of worms   and makes buying and selling much less profitable

[Flivverking]

You should investigate this topic on Ebay forums and Ebay's policy updates for the real story..

 There was for long while ,of when a threshold was reached in sales,like $20,000 and or 200 sales that Paypal would send you that tax form..

 Paypal now is somewhat estranged from Ebay and Ebay is or wanting to dig more  directly into sellers bank accounts it only seems part of their evil master plan to ruin people in more ways. So why not rat them out.

 

[60FlatTop]

Part of the pork in the COVID relief bill requires an online money exchange service to provide a 1099 IRS tax document for any annual sales over $600.

 

 

A provision in the American Rescue Plan Act of 2021 (aka the COVID relief bill) would put some people's online-selling activity in the crosshairs of the IRS. 

 

Some might say rightly so, but even people who sell their old stuff when cleaning out their basements and garages should sit up and take notice. 

 

If you use PayPal, eBay, Etsy, or any electronic form of payment processing to collect money from buyers, you will be impacted if the amount a single entity processes on your behalf exceeds $600.

 

Many online sellers are familiar with IRS Form 1099K, which marketplaces and payment processors send out each January to sellers who've exceeded $20,000 in gross receipts when collected in over 200 transactions. (For example, if you process $21,000 in 199 different transactions in a single tax year, the payment processor is not required to file Form 1099K, though what thresholds each company employs in practice we don't know and may vary.) 

 

A provision the 2021 Rescue Plan Act would lower the threshold considerably - it would require companies to send a 1099K to sellers for whom they've processed over $600, period. In our reading of the bill's language, it appears if you sell $601 worth of items, even in a single transaction, the payment processor is required to file Form 1099K.

 

The provision amends Section 6050W of the IRS tax code - the relevant language is contained in Section E.

 

Watch out for innocent sounding Rural Broadband. It is loaded with similar goodies that could eliminate pocket change.

 

 

[auburnseeker]

Leave it up to Gov't to ruin anything it tries to fix or help. 

[60FlatTop]

The "shadow" economy has been the target of governments worldwide for a long time now. It amounts to about 10% of the world cash flow. And they want it.

[auburnseeker]

That's the whole reason they are trying to go to a cashless society.  Easy to track every dime spent on a card.  They even make it hard to get cash out of the bank.  Even cashing a check is getting crazy.  The wife tried to cash a $100 check for me and they wouldn't do it because I wasn't present. At that time,  I had sold a car and there was like 20 grand in the account she was cashing it against.  She told the teller do you think with 20G in that account I'm going to steal just $100.  We both have accounts in that bank plus our mortgage and she has permission to do stuff with that account but I guess cashing a check isn't one of them. 

[pkhammer]

I got a 1099 from ebay and paypal for last year's sales for the first time. Not a big deal since I've been claiming my sales on my tax returns for years. The good news in all of this is many things can be claimed on your taxes if you're buying for resale; travel expenses, purchases, fees, hotel, mileage, food, office, computer, storage, etc are all deductible or at least partially deductible. For the guy that sells a couple thousand per year and doesn't want to keep up with all of the receipts/expenses, they're kind of screwed.

 

auburnseeker is correct I believe. A cashless society is coming sooner or later.

[60FlatTop]

Rural broadband will bring in the cashless society. And it is hobby and car related.

[auburnseeker]

As hard s they are pushing for a cashless society,  I think there will always be an alternative.  Alot of people and illegal activity doesn't want to be traced,  as well as workers that need to be kept off the radar still need to paid and any alternative to cash coin or bartar that's traceable just wont work.  I would suspect that whatever they think the shadow cash trade is,   is much higher than they figure and some of those transactions much larger.  

[60FlatTop]

Pay for lunch with plastic but always carry a couple of bucks to tip the waitress. It may be the only humanitarian act of the day.

 

Did you hear about the politician accused of inappropriate touching of a coworker. And didn't want to admit he was distracting them while picking their pocket?