Ebay just killed their gun parts sales!

[xtriggerman]

 Got a notice from them that they will hold my pay outs since I made more than $600 on their sight this year, they need my SS # so they can 1099-K my income with the IRS. It used to be no IRS until you went over 10K in sales! WTF...... I sold ALOT of gun parts there since GB had dismal gun parts followers compared to Ebay but now, unless GB is going to change their rules to comply with the IRS, I'm going to start GB pay and move over to them. Used to be, you go where the money is but this Gov encroachment is in your face on Ebay now.

[Darrell]

I'm not sure I understand your complaint. The tax laws say you have to declare income, so eBay is just following the laws. I expect that Gun Broker will have to do the same thing.

I don't love paying sales tax on internet purchases, but that's the law. 

 

[KahrMan]

Like Darrell said, this is the law not an Ebay problem.  All online retailers will start doing this, even Gunbroker.

[GlockSpock]

This has absolutely zero to do with anything Ebay has done, they are simply following directions.

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

Notice this little tidbit:

We’re lobbying Congress on your behalf to raise the $600 threshold. Help us stop overtaxation and the avoidable disclosure of private information.

You can share your story about the importance of online selling, or send a letter to members of Congress.

I absolutely guarantee that Ebay hates this more than you do. It's going to cost them a whole lot more than it costs you.

FYI: The tax change applies to all payment processors. Gunbroker is the exact same boat as Ebay, at least whomever or however payments get processed. If you accept payment via a credit card or check via Gunbroker, it'll be treated exactly the same.

[jpx2rk]

I've seen comments on other gun forums about the 1099 reporting regarding Paypal as well.  

[Magiccarpetrides]

Paypal, Venmo, Square Cash App, and all the others now have to report over $600.  This is really gonna hurt those doing the side hustle daycare and cleaning jobs as they will have to ask for cash or pony up to the tax man.  I hate paying taxes but I love living in this country so it is what it is.

[Alleycat72]

I made $6,456 on ebay last year. Unfortunately I paid $7,679 for the parts new. I should get a tax refund. LOL

[Chucktshoes]

1 hour ago, Alleycat72 said:

I made $6,456 on ebay last year. Unfortunately I paid $7,679 for the parts new. I should get a tax refund. LOL

If you kept records of what you bought, you could write off the losses. 

[xtriggerman]

I dont have a problem with reporting income on brand new item sales. I sell USED gun parts privately from time to time on Ebay and have kept it under 10K anualy without issue. GB still allows buyers to pay directly to the seller with MO's and they bill you for the sales tax off the sale. So far, I'v not had any issues collecting a GB sale into PayPal. Gov over reach is out of control. There is no Income tax written in the US Federal Constitution. It was supposed to be a War effort tax only untill they helped them selves to it just because. Technically its illegal like so much of the "laws" you and I never voted for. Did they ever ask you about sending out your tax monies in the billions in foreign aid?  Just more bend over and like it. You have no say in it back then or now. I also have sold on the 127 yard sale week. I guess I'm a felon there to for not running to them with a 1099-k? Good Grief....

[Garufa]

31 minutes ago, xtriggerman said:

There is no Income tax written in the US Federal Constitution.

To that particular point, yes there is.  16th Amendment.  Ratified 1913. 

[No_0ne]

17 minutes ago, Garufa said:

To that particular point, yes there is.  16th Amendment.  Ratified 1913. 

Beat me to it ...

[xtriggerman]

 OK, stand corrected. and this was the original result in 1913.

 on February 25, 1913, with the certification by Secretary of State Philander C. Knox, the 16th amendment took effect. Yet in 1913, due to generous exemptions and deductions, less than 1 percent of the population paid income taxes at the rate of only 1 percent of net income.

But no slippery slope here........ Your taxes make your politicians so important to the flow of monies, many of them sell them selves while in office for many millions more than their salaries would dictate. Yet they want my used and broken gun parts income. M..effers.  Repeal any portion of the personal income tax? Apparently an income tax once was repealed in 1872! Hell, the way they have been throwing money up in the air like confetti these days, they will reset your bank account value so they can keep command spending with no regard. Why has the word Deficit been virtually black balled in the halls of Congress? Because they need to argue on how many more IRS agents they need first!  That said, they need to keep their mits off my used stuff sales. I'm going to personally ask my reps on that question and vote accordingly..... as if the electro machines will be honest about the votes cast..... 

Edited February 12, 2022 by xtriggerman

[Snaveba]

I agree that paying sales tax on a used item is BS. The gov already got their tax. 
 

What EBay is reporting is income for reporting on your 1040. If you paid $8000 for parts and sold them at a loss, you did not make any income and would not have a tax liability. The trick I suppose is proving the loss.
 

It would be sweet if EBay put a place on a listing to put what the seller has invested in the item so it can record a gain or loss. Then if I buy a holster new, then sell it for a slight loss, no income. The trick would be not letting people put outrageous amounts in there. 
 

I did buy an album a couple years  ago for about $60 and sold it for $1500. So that was income for sure as they see it. 

[QuackerSmacker]

The problem with all this is that, as a few here have stated,  the new $600 trigger seems to include any economic activity.  Sure, a job done would be included in that, but not a sale.  Stores don't add up all their sales and report that as income.  All their expenses are deducted, and their net income is taxed.  

So keep track of what you have paid for everything, because the IRS can tax you only on a positive difference between your cost and your proceeds.  The $600 reporting requirement seems to presume it's all income.  That's only true if it cost you nothing.  

This is going to be such a nightmare for millions of people.  Say you bought a car for $30,000.   A few years later you sell it to a dealer for $18,000.  You DON'T have $18,000 in income by any measure.  There's $0 income in that.  If that dealer has to send in a 1099, well, that's just as insane as eBay having to do it.

For eBay and Gunbroker to be pumping out these 1099s is absolutely ludicrous.  The IRS is still way behind in processing millions of tax returns from the 2020 tax year.   Heeeeeeeeeeeeeeeeeeeeeeere we go!

Keep all receipts and and detailed records of everything you buy! 

It's amazing our (few) sensible politicians are not screaming about this.

[RED333]

This is just another BOOT on our necks choke the life out of us and our country!!!

Edited February 12, 2022 by RED333

[Guest]

17 hours ago, Darrell said:

… I may don't love paying sales tax on internet purchases, but that's the law. 

 

I think my eBay and PayPal days are just about over, I already hate what this sham government does with the money they take from me as it is, I will use every ounce of cunning and guile to not give them a nickel more then I have to. Cash is king, screw the IRS, working so hard to feed their worthless hive of welfare breeder leeches…

[RED333]

2 hours ago, OMCHamlin said:

feed their worthless hive of welfare breeder leeches…

You forgot Leftist pinko commie voters!

[xtriggerman]

What those nitwits are absolutely incapable of understanding is they corralled a chit load of new sales tax by going into Ebay and GB. We all were PO'ed about it but business moved on. Now with this ass a nine 1099-K move, they will lose a portion of the sales tax AND tick off alot of voters. Half a brain would have said, leave sleeping dogs the hell alone! And the dopes wondered how the hell did Trump ever get elected...... I dont file long form so a small itemization more than likely wont add up to more than a standard deduction. Thats what's going to kill my little pocket change I enjoyed from Ebay. Same reason I don't hold a C&R but for the 3 years at a time. Who needs those feds potentially up their but hole on a permanent basis? 

[GlockSpock]

1 hour ago, xtriggerman said:

What those nitwits are absolutely incapable of understanding is they corralled a chit load of new sales tax by going into Ebay and GB. We all were PO'ed about it but business moved on. Now with this ass a nine 1099-K move, they will lose a portion of the sales tax AND tick off alot of voters. Half a brain would have said, leave sleeping dogs the hell alone! And the dopes wondered how the hell did Trump ever get elected...... I dont file long form so a small itemization more than likely wont add up to more than a standard deduction. Thats what's going to kill my little pocket change I enjoyed from Ebay. Same reason I don't hold a C&R but for the 3 years at a time. Who needs those feds potentially up their but hole on a permanent basis? 

How much sales tax goes to the Federal Government?

[Snaveba]

Exactly. Sales tax goes to the State. Federal income tax goes to the feds. Now, if we lived in a state with an income tax…..

i still don’t like them skimming off my side hustle 

[No_0ne]

21 hours ago, Garufa said:

To that particular point, yes there is.  16th Amendment.  Ratified 1913. 

 

4 hours ago, GlockSpock said:

How much sales tax goes to the Federal Government?

 

You guys are screwing up a perfectly good rant interjecting all these facts ...

[Garufa]

5 minutes ago, No_0ne said:

You guys are screwing up a perfectly good rant interjecting all these facts ...

I hate to see a man come unhinged but at least @Snavebaadmits what he’s up to.  

 

3 hours ago, Snaveba said:

I don’t like them skimming off my side hustle 

 

Edited February 12, 2022 by Garufa

[xtriggerman]

Yeah, how about that one for a brain fart. After paying State sales tax for just shy a half century. looks like more of me went south than I was expecting. Worst part about it, my wife's been right about my memory functions  .  Looks like the only way to fix stupid off the top is just stay off social media! Gezz..... And then there's my 93 year old mother I take care of in my home. If you think I'm bad, She makes me look like a genius with her dementia! I'm not scared of dying but that there scars the crap out of me and I'm on the road to it or so it seems. I'v drop the prices on my Ebay stuff with 3 going in the mail tomorrow. Its been a good run since 03. Ebay claims I grossed well over 100K since then. Made ALOT of gun part buyers happy with 3385 transactions to date. It's done. 

[LCPfraTN]

A couple of things to point out. 

1. Sales tax is technically collected from the buyer, so the sellers aren’t directly bearing any sales tax cost…there is of course an indirect cost of dealing with the administrative burden of collecting and reporting said tax. 
 

2. 1099 reporting has always been used to report gross sales, not net profit. The threshold for reporting sales of goods has now been lowered to the same level as sales of services has been for years. 
 

3. 1099 reported income is generally reported as sales on Schedule C of form 1040, then you deduct all of your expenses and cost of goods sold…obviously, you’ll need to have documentation support for the expenses if you get audited. If you have net income, then you’ll owe tax, if you don’t have net income (in other words, you have a net loss), then you won’t pay any tax. This has nothing to do with itemized or standard deductions.