[HitandRun]

Quote:

Originally Posted by ozzie92

Sales over $600 PER YEAR will get hit with additional tax.

oh bummer...that sucks!

[Jmacq1]

Quote:

Originally Posted by ozzie92

The tax man cometh hard and heavy-handed for Ebayers in 2023?

We were already paying the taxes in VA as of last year. It didn't turn out too bad, just reduced my refund by a few hundred. It does, however, require a good bit of bookkeeping and potentially research (figuring out what MSRP was on stuff from years ago).

But yeah, something to be aware of if you're ebaying. On the plus side it just might be what breaks the scalpers' backs.

[paokole]

Quote:

Originally Posted by ozzie92

Sales over $600 PER YEAR will get hit with additional tax.

I was under the impression that over 200 transactions triggers tax filing. Isn't that still the case?

[Cobra Agent 66]

I've also done some purging over the last month: Star Wars, GI Joe and Marvel Legends stuff was piling up. Sold off all my vehicles and playsets (Star Wars and GI Joe, including Hot Wheels, Titaniums, etc), some Pops, and Marvel Legends figures that seemed excessive. Kind of went "KonMari" and tried to focus on the characters that got be back into collecting in 2012.

I actually have some strong sentimental ties to some of the Valor vs Venom pieces. The Comic Pack with SE, SS and Red Ninja was one of the things that I knew I had to have, along with the Cobra Ninja Strike multi-pack.

[BeachheadMatt]

Quote:

Originally Posted by Jmacq1

We were already paying the taxes in VA as of last year. It didn't turn out too bad, just reduced my refund by a few hundred. It does, however, require a good bit of bookkeeping and potentially research (figuring out what MSRP was on stuff from years ago).


But yeah, something to be aware of if you're ebaying. On the plus side it just might be what breaks the scalpers' backs.

Do they really want you to "tie" every individual sale back to an inventory purchase? Or can you just say I spent X amount total on inventory vs x amount total sales? (Obviously this will be a future question for my accountant, but thought I'd ask it here first). I'm planning on just claiming a near-zero net profit, which you can do your first 3 years. Many, many of my sales are just little pieces I've pulled from larger sets, how would you tie that back to a dollar amount spent?



In my opinion, they're creating a huge potential gray area by forcing people to classify their hobbies as business income. Soon they'll have a 'yard sale' division of the IRS going to neighborhoods each Saturday investigating how much people made selling their old junk. LOL

Quote:

Originally Posted by paokole

I was under the impression that over 200 transactions triggers tax filing. Isn't that still the case?

Not any more.

[Bac]

I can only imagine how many small-to-midsize sellers aren't aware of the tax law changes and will get a surprise 1099 from Uncle Sam in early 2023.

I'd also expect to see more cash transactions at in-person shows.

[paokole]

Quote:

Originally Posted by BeachheadMatt

Do they really want you to "tie" every individual sale back to an inventory purchase? Or can you just say I spent X amount total on inventory vs x amount total sales? (Obviously this will be a future question for my accountant, but thought I'd ask it here first). I'm planning on just claiming a near-zero net profit, which you can do your first 3 years. Many, many of my sales are just little pieces I've pulled from larger sets, how would you tie that back to a dollar amount spent?



In my opinion, they're creating a huge potential gray area by forcing people to classify their hobbies as business income. Soon they'll have a 'yard sale' division of the IRS going to neighborhoods each Saturday investigating how much people made selling their old junk. LOL

Not any more.

Thank you for clarifying that, I?m guessing eBay sellers will start receiving info early next year of this new legislation.

Quote:

Originally Posted by Bac

I can only imagine how many small-to-midsize sellers aren't aware of the tax law changes and will get a surprise 1099 from Uncle Sam in early 2023.

I'd also expect to see more cash transactions at in-person shows.

I second the cash sales at trade shows and add that huge part of online sales are going to be shifting toward Facebook groups and other social media. The latter will be particularly difficult to regulate for now.

[BeachheadMatt]

Quote:

Originally Posted by paokole

Thank you for clarifying that, I?m guessing eBay sellers will start receiving info early next year of this new legislation.



I second the cash sales at trade shows and add that huge part of online sales are going to be shifting toward Facebook groups and other social media. The latter will be particularly difficult to regulate for now.

The law will also apply to the Facebook marketplace, Mecari, Etsy, Paypal Goods and Services transactions, third party sellers on Amazon and Walmart, and where ever else these things can be tracked.

[Bac]

Apparently using Paypal Friends and Family does not count toward the $600. Same for Venmo gifts. This is where selling within a trusted community like a vetted Facebook Group will payoff.

Of course you might set off a flag regularly accepting F&F payments.

Also note that this law apparently applies to bank accounts as well. Though that would seem hard to monitor unless deposits set off flags.

https://newsroom.paypal-corp.com/202...tions-Answered

[paokole]

Quote:

Originally Posted by BeachheadMatt

The law will also apply to the Facebook marketplace, Mecari, Etsy, Paypal Goods and Services transactions, third party sellers on Amazon and Walmart, and where ever else these things can be tracked.

Yeah, the law has to apply across the board, there are loopholes nevertheless, ie Facebook groups where as Bac mentioned it'll be extremely difficult to trace those PayPal F&F transactions, unless frequent activity accompanied by large amounts may trigger monitoring. I guess it'll come down to the level of enforcing such law.

Quote:

Originally Posted by Bac

Apparently using Paypal Friends and Family does not count toward the $600. Same for Venmo gifts. This is where selling within a trusted community like a vetted Facebook Group will payoff.

Of course you might set off a flag regularly accepting F&F payments.

Also note that this law apparently applies to bank accounts as well. Though that would seem hard to monitor unless deposits set off flags.

https://newsroom.paypal-corp.com/202...tions-Answered

Thank you for including the link! I wouldn't be surprised if Facebook groups (BST) Admins are required to report on activity upon request considering the volume of transactions that escape reporting through "gift" payments.