eBay 1099 issues

bnorth · #1 10-17-2023, 05:15 PM

Quote:

Originally Posted by G1911

It's almost just not worth selling cards at all unless they are big ones. Sales have always been taxed (in theory, at least), but with the 1099 that assumes profit absolutely changes everything. I don't have receipts for this now duplicate I bought at a show when I was 17. I have never seen a single table issuing reciepts. I don't remember what the heck I paid for a lot of my stuff; many thousands of transactions over my entire lifespan. How do I even know my cost if I did? I bought a big lot for $1,500, I kept some cards, traded some cards, sell a couple dupes. A whole lot of very arbitrary accounting to divide up that $1,500. It's just too much work to bother with when I have to give a high percentage to the state and don't have paperwork to defend my accounting like 99.9% of long-time hobbyists, the platform fees, etc. There's just so little profit in it, and risk in doing so if the state decides they don't like how I accounted my cost basis from many year ago after the fact. 28% + 10.3% state income tax plus possibly 3.8% would be almost half; and if I don't remember my cost to be safe I need to pay that on the whole sum. My dupes mostly just sit here in boxes, many given away for free if they aren't anything special (I'm sure someone can come up with a way I need to payoff the state to do that

). It just ain't worth getting into it over a few hundred dollars in cards with an IRS doubling in size.

eBay has definitely suffered for this, and I suspect will face a further decline as casuals find out the hard way the state is coming after them for selling a few cards on eBay. Nothing eBay can do about the state needing to squeeze more cash out of the population to pay for whoever it is being redistributed to next. I notice the supporters of high taxes and 1099's sure do like to be paid in ways that avoid or obfuscate such reporting when I buy a card from them

Just to the part I made bold. It is not because of people selling a few cards. It is because of a lot of people running what is basically a full blown business without paying any taxes. As a former tax paying business owner I absolutely love that people are getting 1099s now.

CardPadre · #2 10-17-2023, 05:27 PM

Quote:

Originally Posted by bnorth

It is not because of people selling a few cards. It is because of a lot of people running what is basically a full blown business without paying any taxes.

I feel like those people were already getting 1099s from hitting the 200 transactions and $20K combo threshold. Anything close to resembling a full-blown business would at least do that probably.

We should all pay our taxes, but this puts a lot of extra accounting burden on the shoulders of relatively low-earners in a lot of cases.

bnorth · #3 10-17-2023, 05:34 PM

Quote:

Originally Posted by CardPadre

I feel like those people were already getting 1099s from hitting the 200 transactions and $20K combo threshold. Anything close to resembling a full-blown business would at least do that probably.

We should all pay our taxes, but this puts a lot of extra accounting burden on the shoulders of relatively low-earners in a lot of cases.

I know several ebayers that when it was 200/20K just used multiple accounts to stay under that threshold.

Peter_Spaeth · #4 10-17-2023, 06:46 PM

Why do people think you only owe tax if you get a 1099?

bnorth · #5 10-17-2023, 06:52 PM

Quote:

Originally Posted by Peter_Spaeth

Why do people think you only owe tax if you get a 1099?

I do not believe anyone thinks that. It is more they are only going to pay taxes if they absolutely have to and a 1099 is making that happen.

Peter_Spaeth · #6 10-17-2023, 06:54 PM

Quote:

Originally Posted by bnorth

I do not believe anyone thinks that. It is more they are only going to pay taxes if they absolutely have to and a 1099 is making that happen.

It was rhetorical. In any case I think you're likely to see more 1099s in the future.

Flintboy · #7 10-17-2023, 07:27 PM

I sell 10k on eBay and the government wants their cut. However if I have a student loan out the government says don�t worry about. Makes complete sense, I get it now.

toppcat · #8 10-19-2023, 07:40 AM

Quote:

Originally Posted by bnorth

I know several ebayers that when it was 200/20K just used multiple accounts to stay under that threshold.

So structuring....

bnorth · #9 10-19-2023, 08:32 AM

Quote:

Originally Posted by toppcat

So structuring....

Yes, I have noticed it from bigger sellers for years. Now I have noticed the smaller sellers still doing it but with several accounts. Recently I was looking at a bat. I decided maybe if it didn't sell and they relisted it I would make an offer. It got relisted but from another account from the opposite side of the US. When I contacted the seller about it they said it was one of several of their accounts and not to worry they really owned the bat. All I know is I now own the bat.

Jewish-collector · #10 10-19-2023, 08:45 AM

How can sellers use different accounts ? It's all tied to the same SSN #, yes ?

bcbgcbrcb · #11 10-19-2023, 09:54 AM

Maybe they’re using multiple accounts for other reasons such as the limit of 250 free Buy It Now listings that each eBay seller account gets every month.

G1911 · #12 10-17-2023, 07:30 PM

Quote:

Originally Posted by bnorth

Just to the part I made bold. It is not because of people selling a few cards. It is because of a lot of people running what is basically a full blown business without paying any taxes. As a former tax paying business owner I absolutely love that people are getting 1099s now.

The threshold is $600. It is not restricted to people "running what is basically a full blown business without paying taxes". They are caught up in it too if they were doing this, but this is nowhere even close to the actual barrier drawn.

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