eBay and Taxes

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Postby tourist504 on Mon Aug 20, 2018 3:10 pm

I've been liquidating my collection(s) via eBay, and I am approaching $10K in sales and will probably surpass 200 sales this year. I've read some conflicting information about how this will be treated by the powers that be. I also buy a ton on eBay, and I've heard that if I buy/sell roughly similar amounts, it is more of a hobby which also has different implications.

I assume a lot of you have experience with this?
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maden wrote:I would like to see a 16"+ diameter tube.

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jordachep wrote::drool: Can't believe the size. I want this so bad.

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Postby jjttdw on Mon Aug 20, 2018 3:13 pm

tourist504 wrote:I've been liquidating my collection(s) via eBay, and I am approaching $10K in sales and will probably surpass 200 sales this year. I've read some conflicting information about how this will be treated by the powers that be. I also buy a ton on eBay, and I've heard that if I buy/sell roughly similar amounts, it is more of a hobby which also has different implications.

I assume a lot of you have experience with this?



Beginning in the 2011 tax year, the Internal Revenue Service stated that all eBay sellers who had more than 200 transactions and received over $20,000 in sales are required to file a 1099-K form to report earnings

https://smallbusiness.chron.com/irs-tax-filing-rules-ebay-sales-55145.html

You have $10k left this year.
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Postby tourist504 on Mon Aug 20, 2018 3:15 pm

Is that 20k AND 200 transactions or 20k OR 200?
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maden wrote:I would like to see a 16"+ diameter tube.

BlakeAronson wrote:This one is just big enough, but not too overwhelming in size.

jordachep wrote::drool: Can't believe the size. I want this so bad.

Imagex6

Postby jjttdw on Mon Aug 20, 2018 3:15 pm

tourist504 wrote:Is that 20k AND 200 transactions or 20k OR 200?


And. Be careful though because I think PayPal might be considered in the mix. halftonegraphics will be the final authority on it though.
Last edited by jjttdw on Mon Aug 20, 2018 3:17 pm, edited 1 time in total.
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NEWPORTS69 wrote:ive kept journal for very long time and ranked public restrooms because i srs hate using them, was working on an app but im not very smart

Postby tourist504 on Mon Aug 20, 2018 3:17 pm

jjttdw wrote:
tourist504 wrote:Is that 20k AND 200 transactions or 20k OR 200?


And. Be careful though because I think PayPal might be considered in the mix.

Fuggin A :clap:

Thanks, JJ
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maden wrote:I would like to see a 16"+ diameter tube.

BlakeAronson wrote:This one is just big enough, but not too overwhelming in size.

jordachep wrote::drool: Can't believe the size. I want this so bad.

Imagex6

Postby tourist504 on Mon Aug 20, 2018 3:25 pm

jjttdw wrote:Be careful though because I think PayPal might be considered in the mix.


Oof - I've done my share of off-eBay deals but I think I'm still good for the moment.

I was concerned because someone told me at 10k in sales they mail a 1099. Last year I promised my wife I would sell posters to pay the note on my new car, and it's gone way better than I was expecting. This is still 95% a hobby because I still buy posters.
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maden wrote:I would like to see a 16"+ diameter tube.

BlakeAronson wrote:This one is just big enough, but not too overwhelming in size.

jordachep wrote::drool: Can't believe the size. I want this so bad.

Imagex6

Postby sixstringer on Mon Aug 20, 2018 3:31 pm

PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:

-$20,000 USD in gross payment volume from sales of goods or services in a single calendar year
-200 payments for goods or services in the same year*

*Except in Vermont and Massachusetts where the threshold is lower irrespective of the number of transactions.
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Postby Codeblue on Mon Aug 20, 2018 3:36 pm

That's just the point where you're auto 1099'd based on paypal transactions. Still supposed to report the income regardless. Most people obviously don't. If ya got audited ya'd have to pay teh piper and teh penalties.
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Postby tourist504 on Mon Aug 20, 2018 4:05 pm

Codeblue wrote:That's just the point where you're auto 1099'd based on paypal transactions. Still supposed to report the income regardless. Most people obviously don't. If ya got audited ya'd have to pay teh piper and teh penalties.

I've heard a lot about the distinction between business and hobby - is this where that enters into the equation? Or is there no real difference?
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maden wrote:I would like to see a 16"+ diameter tube.

BlakeAronson wrote:This one is just big enough, but not too overwhelming in size.

jordachep wrote::drool: Can't believe the size. I want this so bad.

Imagex6

Postby Codeblue on Mon Aug 20, 2018 4:12 pm

IRS don't really give a fudge.
Taxpayers must report on their tax return the income earned from hobbies.


https://www.irs.gov/hobby-or-business-i ... -to-decide
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RupertPupkin wrote:I live by this rule and this rule alone: people are drymounting idiots.

Postby jjttdw on Mon Aug 20, 2018 4:18 pm

Codeblue wrote:IRS don't really give a fudge.
Taxpayers must report on their tax return the income earned from hobbies.


https://www.irs.gov/hobby-or-business-i ... -to-decide


The IRS is like the honey badger...the honey badger don't give a fudge.

Millions of people enjoy hobbies that are also a source of income. From catering to cupcake baking, crafting homemade jewelry to glass blowing -- no matter what a person’s passion, the Internal Revenue Service offers some tips on hobbies.

Seriously....glass blowing as a hobby??
Last edited by jjttdw on Mon Aug 20, 2018 4:21 pm, edited 1 time in total.
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NEWPORTS69 wrote:ive kept journal for very long time and ranked public restrooms because i srs hate using them, was working on an app but im not very smart

Postby Codeblue on Mon Aug 20, 2018 4:21 pm

Speaking of which, we had some of those at teh new section of the zoo out here for a few months, but they're gone now (replaced by fossas), and I haven't been able to find anything online as to why they're gone. All I can think of is that they were too much of a hassle and got pulled.
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Postby jjttdw on Mon Aug 20, 2018 4:23 pm

If you threw them both in a pit I wonder who comes out on top.. the honey badger or fossa. Either way the honey badger dont give a f**k
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NEWPORTS69 wrote:ive kept journal for very long time and ranked public restrooms because i srs hate using them, was working on an app but im not very smart

Postby Codeblue on Mon Aug 20, 2018 4:24 pm

jjttdw wrote:Seriously....glass blowing as a hobby??

Doesn't zeldadad do that fudge?
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Postby ygolohcysp on Mon Aug 20, 2018 6:07 pm

1. no one in this thread has given you the best advice.
2. there's only ONE piece of good advice: pay the taxes you owe, regardless of how many transactions or amounts.

if you made or lost money, you may owe taxes, hobby or not. talk to a lawyer and an accountant if you're unclear. don't assume because you're under some magical document issuing threshold that you have no tax liability because you probably do. and the posters you keep don't count against what you made as an expense.

there is NO statue of limitations when it comes to tax fraud: https://www.optimataxrelief.com/tax-eva ... mitations/
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