Quote:
Originally Posted by BobC
What about the person that uses Ebay maybe a couple times a year to sell off a collectible they've upgraded, to generate some money for another purchase, or to cash in because they feel the market is right? Are they all dealers just because they used Ebay? See, this is one of the issues with dropping the 1099 reporting sales threshold from $20,000 down to $600. Someone who truly is just a casual seller and not really a dealer may now get targeted as being in an ongoing business because of the low sales reporting threshold amount.
Is someone who has a garage sale every year in a legal business? I don't believe so. So what is the difference if they use Ebay as their garage sale format instead, especially over these past couple of years due to the Covid issues? Using Ebay in and off itself does not a business make, which it sounds like you are kind of alluding to.
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I've never paid taxes on stuff I've sold at garage sales (not that it amounted to much money). But then again, I never knew that we were required to... especially since virtually everything gets sold at a "bargain basement" style loss.
And what about the guy who sells his cards for cash, to a guy working the booth at a trade show? Or even the guy renting the booth, who sells the cards? I have a feeling these types of sales go largely unreported.