IRS wants a cut of your ebay sales

[wolfmanalfredo]

I thought everyone already knew this? Atleast I have for a good few months. I think it was that you're supposed to recieve a form if you make 20,000+ and or 200 transactions yearly.

 

[KC37]

For their 2011 tax returns, "taxpayers who annually sell more than $20,000 worth of goods and have more than 200 electronic transactions" will receive a new IRS form, known as 1099-K, reporting the proceeds

Are we 100% positive it's 20K AND 200 sales or is it 20K OR 200 sales.

This is the only thing I haven't seen definitively said yet, because I might hit 200 sales, but it sure as hell won't be for $20K...

 

[KOBEARODLT]

how do you check to see how much you have sold?

 

[A_Pharis]

how do you check to see how much you have sold?

With proper financial records?


Seriously, though - the IRS is going to send a form that corresponds to data from eBay. They're going to expect you to keep your own records.

 

[KOBEARODLT]

how do you check to see how much you have sold?

With proper financial records?


Seriously, though - the IRS is going to send a form that corresponds to data from eBay. They're going to expect you to keep your own records.

well i dont keep track of all the money i get off ebay considering i end up spending it on other cards anyways....i know sometimes they send a msg telling you how much you have sold within the time you have been on ebay...i dont know how to access taht without getting the msg though

 

[JoshHamilton]

The odds that the semi retarded and overly inept federal government can keep track of every single eBay transaction, along with every property, bank, private sale, etc transaction in this country: ZERO.

Nah, I won't pay them a dime and get away with it. It will take years before they have the manpower and organizational intelligence to even dream of catching up with proper tax collection

 

[A_Pharis]

The odds that the semi retarded and overly inept federal government can keep track of every single eBay transaction, along with every property, bank, private sale, etc transaction in this country: ZERO.

Nah, I won't pay them a dime and get away with it. It will take years before they have the manpower and organizational intelligence to even dream of catching up with proper tax collection

The IRS doesn't need to keep track of it. They get eBay to report it for the users that meet the qualifications.

P.S.: "YES! I am going to commit tax fraud! SUCK IT GOVERNMENT!"

 

[Huffamaniac]

I wonder how many people will list 100's of items in November and December so they can clean inventory before the new form goes into effect on January 1, 2011

 

[A_Pharis]

I wonder how many people will list 100's of items in November and December so they can clean inventory before the new form goes into effect on January 1, 2011

I really think it's $20k AND 200 sales.

 

[Huffamaniac]

Even if that is the case I bet plenty of big time sellers who sell over 20K worth of items probably do not have receipts or have proper backup for some of their stuff. I would think they would try to sell all of that before January 1st, 2011

I wonder how many people will list 100's of items in November and December so they can clean inventory before the new form goes into effect on January 1, 2011

I really think it's $20k AND 200 sales.

 

[A_Pharis]

Even if that is the case I bet plenty of big time sellers who sell over 20K worth of items probably do not have receipts or have proper backup for some of their stuff. I would think they would try to sell all of that before January 1st, 2011

I wonder how many people will list 100's of items in November and December so they can clean inventory before the new form goes into effect on January 1, 2011

I really think it's $20k AND 200 sales.

IRS's response to anyone without records is
"eBay requires PayPal. PayPal keeps transactions."

 

[ChasHawk]

Even if that is the case I bet plenty of big time sellers who sell over 20K worth of items probably do not have receipts or have proper backup for some of their stuff. I would think they would try to sell all of that before January 1st, 2011

[quote="A_Pharis":1fzepme0]

I wonder how many people will list 100's of items in November and December so they can clean inventory before the new form goes into effect on January 1, 2011

I really think it's $20k AND 200 sales.

IRS's response to anyone without records is
"eBay requires PayPal. PayPal keeps transactions."[/quote:1fzepme0]
Right, but still. This is still a largely cash driven hobby/industry.

How do you prove that you bought $5,000 worth of inventory at a show with cash? Start asking people for receipts at card shows?

To me, this is very similar to the RIAA wanting royalties from sales of used CDs.

I can see them trying to enforce this if you sell un-opened wax, but to me a loose card is the equivalent of used merchandise.

 

[JoshHamilton]

The odds that the semi retarded and overly inept federal government can keep track of every single eBay transaction, along with every property, bank, private sale, etc transaction in this country: ZERO.

Nah, I won't pay them a dime and get away with it. It will take years before they have the manpower and organizational intelligence to even dream of catching up with proper tax collection

The IRS doesn't need to keep track of it. They get eBay to report it for the users that meet the qualifications.

P.S.: "YES! I am going to commit tax fraud! SUCK IT GOVERNMENT!"

The fact that eBay is turning over all of their records is irrelevant. Every employer turns in W-2 forms for every single employee in the United States as well.

The fact is, the IRS has NOWHERE near the manpower to check EVERY single W-2 form submitted by businesses and match them up to every single W-2 form turned in by workers. Of course, if they miss a tax return from someone making six or 7 figures they'll go after them; but for someone making under $50k a year it isn't feasible to audit everyone.

Same concept if you're the victim of vandilism or a break-in where the damage is under $10k. You're basically **** out of luck because it literally costs more to prosecute at trial than the damages are. It costs the gov't more to go after criminals than it costs to let them go

 

[Huffamaniac]

Thanks. I judt went back to check on previous sells I made. My first sell was a Dominic Hasek SPX Jersey card For $14.14. That was on August 8, 2006, and I can still remember how excited I was watching the auction go up each day.

Even if that is the case I bet plenty of big time sellers who sell over 20K worth of items probably do not have receipts or have proper backup for some of their stuff. I would think they would try to sell all of that before January 1st, 2011

[quote="A_Pharis":17ddztce]

I wonder how many people will list 100's of items in November and December so they can clean inventory before the new form goes into effect on January 1, 2011

I really think it's $20k AND 200 sales.

IRS's response to anyone without records is
"eBay requires PayPal. PayPal keeps transactions."[/quote:17ddztce]

 

[A_Pharis]

Even if that is the case I bet plenty of big time sellers who sell over 20K worth of items probably do not have receipts or have proper backup for some of their stuff. I would think they would try to sell all of that before January 1st, 2011

[quote="A_Pharis":2rv83qaj]

I wonder how many people will list 100's of items in November and December so they can clean inventory before the new form goes into effect on January 1, 2011

I really think it's $20k AND 200 sales.

IRS's response to anyone without records is
"eBay requires PayPal. PayPal keeps transactions."

Right, but still. This is still a largely cash driven hobby/industry.

How do you prove that you bought $5,000 worth of inventory at a show with cash? Start asking people for receipts at card shows?

To me, this is very similar to the RIAA wanting royalties from sales of used CDs.

I can see them trying to enforce this if you sell un-opened wax, but to me a loose card is the equivalent of used merchandise.[/quote:2rv83qaj]

If the IRS comes knocking wanting to see purchase receipts for the packs/boxes/cases, then you just want to have some way. As a co-owner of a business who has dealt with the IRS. They really really don't care. They just want proof of what cost led to that revenue.

 

[Zithy]

First off, I'm pretty sure the threshold is 20K AND 200 sales(or transactions total, including buying?).

Second, could this lead to a big increase of show vendors looking to liquidate cardboard into untraceable cash?

 

[RandomH]

 

[Erich]

Even if that is the case I bet plenty of big time sellers who sell over 20K worth of items probably do not have receipts or have proper backup for some of their stuff. I would think they would try to sell all of that before January 1st, 2011

I wonder how many people will list 100's of items in November and December so they can clean inventory before the new form goes into effect on January 1, 2011

I really think it's $20k AND 200 sales.

There is no way in Hell the likes of Burbank and similar big sellers have records of every card in there store. I can see prices possibly going up to cover the IRS bill.

 

[boomo]

Anyone bitching/complaining/commenting in this thread actually sell $20k a year on eBay?

If so, you can fund my PC purchases and write that off as a loss. :lol:

ive done 60,000 already this year.
probably spent 70, so i hope im ok

 

[boomo]

simple solution, FCB transactions with gift payments :lol: :lol: :lol: :lol: :lol: :lol: