Quote:
Originally Posted by Exhibitman
I just don't see how a 1099 in and of itself makes you run away from the platform unless you are a tax scofflaw.
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I think it's because you view selling on ebay as a business for most people. And for most sellers, it is not. Now they will get a 1099 indicating sales income where many of them have no real
proof of what they paid for a cost basis. So if/when the IRS comes calling, how do they prove what they claim when they have no records/proof because they didn't intend selling what they bought in the first place? I know a couple people who I doubt are "tax scofflaws" who are leaving because they don't want the hassle of
now keeping records and
retro-actively assessing what they paid for items. Since they were never "in business" as it was a hobby for them, they don't have records (ie proof) of what they paid.
Your assumption that
everyone who leaves ebay is a tax scofflaw because they are now issued 1099 is unfounded if not downright silly.