Ebay Seller IRS want your Paypal Sales report for taxes

[cgilmo]

I am sure most people that aren't full time ebay dealers can figure out a way to legitamately show a loss.

People that are full time ebay dealers should pay taxes anyway. I pay taxes every pay check, so should they.

 

[tonsofcommons]

It's really not that hard.

Just download each months transactions in to a XL spreadsheet. Divide them out in to what you bought and what you sold.

The biggest thing I suggest is having a great accountant that isn't affraid to use the IRS' rules in your favor.

I had over 8000 in internet sales last year, but I have enough expenses (thank god for mileage to shows/shops/walmart/post office) to offset that.

And you can use home office as an expense, but it has to be an area dedicated to your business and you can't take the expense if you are already showing a loss.

 

[All The Hype]

Sucks for people who sell stuff just to sustain their hobby like myself.

I have been right around 200 selling transactions looking at my last few 12-month windows. I'll just have to make sure I stay under 200 for the entirety of 2010....

If you look closely, it says 200 transactions AND $20,000 gross sales. Therefore, you are fine...assuming that you aren't selling $20k.

 

[marterburn]

Sucks for people who sell stuff just to sustain their hobby like myself.

I have been right around 200 selling transactions looking at my last few 12-month windows. I'll just have to make sure I stay under 200 for the entirety of 2010....

If you look closely, it says 200 transactions AND $20,000 gross sales. Therefore, you are fine...assuming that you aren't selling $20k.

hahaha, only 2k would be a VERY good year for me. thanks

 

[tonsofcommons]

I'm not worried anyways. I keep track of ALL mileage and all purchases, so not concerned at all.

 

[VizquelCollector.com]

Or split up into multiple accounts, none of which hit the triggers they're putting in place.

Except PayPal would see the bank accounts they are link to. Also, if caught, that is a federal crime -- tax evasion. Horrible advice.

Yes, they sure would. Is it illegal to help your dad sell cards? How about your wife? Son?

 

[Mudcatsfan]

Noone has asked for a link yet?

**EDIT**

here's some

http://www.auctionbytes.com/cab/abu/y21 ... bu0258/s03

http://www.irs.gov/pub/irs-dft/f1099k--dft.pdf

 

[Zithy]

Is there a way to see a year to date of all your sales, either from your ebay page or Paypal?

It sure would be nice to know that you're at 190 sales or 19.5K in September instead of finding out you're over in December.

 

[yanksfan4eva]

edit

 

[pac213up]

https://www.thepaypalblog.com/2008/08/p ... ecome-law/

 

[jrinne]

bring on the old way of paying, money orders.

 

[Crazylox23]

Crap I have done close to $20,000 on ebay in the last month and a half!!!

 

[Huffamaniac]

This legislation applies to all payment providers including PayPal and takes effect in 2011, so the first reports will go to the IRS in January 2012

Crap I have done close to $20,000 on ebay in the last month and a half!!!

 

[Zithy]

Crap I have done close to $20,000 on ebay in the last month and a half!!!

You're not living in fear of being audited now? Or you just have extremely slim profit margins

 

[rsmath]

ok so you only have to report if you make more then 200 sales, yay

well, you have to technically report with 1 sale. The IRS won't know about it unless enough activity is triggered to generate a tax report or unless you have other flags in your tax filing that would trigger an audit and get the IRS to look at your income sources in more detail through the auditing.

If one does any kind of selling on ebay, one better start setting up a spreadsheet to prove costs against the sale or learn to use some accounting or home finance software and get used to using it so in 2011 one is ready to document transactions in an efficient manner.

 

[A_Pharis]

For all the people asking "WHYYYYYYYY!?!??!"

Did you not realized that you've always needed to report sales like this? This is nothing new -- they're just cracking down on it.

And for all of you offering alternatives to just doing the right thing and reporting profit/loss, what don't you get about this concept? :

Tax evasion is a federal crime. Period. Anything you do to AVOID paying taxes on income is a C-R-I-M-E.

 

[ballcardzdotcom]

If you're upset or don't agree with the way you're being taxed, you need to stand up and do SOMETHING about it. There are plenty of organizations that are out there that are trying to lobby the government to change our broken tax code. My favorite is http://www.fairtax.org. There actually is a movement going on right now that is going to be an actual demonstration in Washington that you can be part of virtually. The link to that website is http://www.onlinetaxrevolt.com. The only way that I can foresee that our country gets back on the right path and stands tall as the best nation on earth is to make sure that everyone that is living in this country, illegally or not, is paying taxes. Sorry to take this to a near political level, but I'm just so damn tired of my money being seized everytime I get a check and being wasted on foolishness.

Matt

 

[koal]

more rulez can suck it