Online Taxes (eBay)
 

The past 4 or 5 years us sellers have had to pay taxes for items sold on eBay. With eBay collecting taxes off each purchase now will we still have to pay these/receive a W9 at the end of the year?

Thanks for any help

Mike

Aren't they just collecting sales tax?

[url]https://pages.ebay.com/seller-center/service-and-payments/tax-information.html#:~:text=If%20you%20sell%20to%20buyers%20in%20the%20US%2C%20some%20states,Sales%20Tax%20on%20your%20behalf[/url].


And probably more relevant: [url]https://www.ebay.com/help/policies/selling-policies/tax-policy?id=4348[/url]

As noted above, ebay is collecting sales tax.

That has nothing to do with you paying taxes on your profits.

Yeah, are you talking about federal income tax or state sales tax? Sellers used to have to collect sales tax on items sold in the same state.

I am confused are you tsalking about Federal Income or sales tax? Income tax has been part of it for more than 4 or 5 years.

[QUOTE=shrevecity;16799380]I am confused are you tsalking about Federal Income or sales tax? Income tax has been part of it for more than 4 or 5 years.[/QUOTE]

It’s sales tax. Income tax has never been reported.

[QUOTE=NHRonin;16799419]It’s sales tax. Income tax has never been reported.[/QUOTE]
It has if you exceeded the PayPal minimums for either Federal ($20,000 and 200 sales) or your state (some as low as $600 in income, AFAIK).

[QUOTE=NHRonin;16799419]It’s sales tax. Income tax has never been reported.[/QUOTE]

Income tax is reported if you hit certain levels but really you should report it all.. And something to think about under the new MP system on Ebay even if you don't get the mandatory 1099 your bank may still report it.

Just because you never got a 1099 does not mean it was not supposed to be reported. What happens if you get one this year and did not last year and you trigger an audit and they decide to look at last years as well? Best to just report it.

As far as the sales tax goes you as a seller don't have to do anything. Ebay is doing all that for you.

n.................................

Got the two confused, thanks for clarifying.

I hate paying it haha

[QUOTE=celtics;16800227]Got the two confused, thanks for clarifying.

I hate paying it haha[/QUOTE]

As a seller, you aren’t paying it. Ebay adds sales tax to the buyers total, so the buyer is paying the sales tax.

[QUOTE=Davis;16800233]As a seller, you aren’t paying it. Ebay adds sales tax to the buyers total, so the buyer is paying the sales tax.[/QUOTE]

I meant the end of the year 1099 income tax

Since not all payments received via Paypal were for profit, how would one report it if no 1099 has been received? I sold some used camera equipments on Ebay.

I’d assume just provide Ebay invoice matching credit card statement to show how much profit was made for each sale?

[QUOTE=Dame;16800290]Since not all payments received via Paypal were for profit, how would one report it if no 1099 has been received? I sold some used camera equipments on Ebay.

I’d assume just provide Ebay invoice matching credit card statement to show how much profit was made for each sale?[/QUOTE]

You keep your own records. NOBODY is responsible for accurately reporting your sales/income other than you. Not eBay, not PayPal, etc. They have reporting requirements but that's not necessarily what goes on your return.

As far as your camera equipment, did you sell it at a profit? Did you use it for business? Any records you can hold on to do it. You don't send them with your return, they're in case of audit only.

[QUOTE=hatchd;16800499]You keep your own records. NOBODY is responsible for accurately reporting your sales/income other than you. Not eBay, not PayPal, etc. They have reporting requirements but that's not necessarily what goes on your return.

As far as your camera equipment, did you sell it at a profit? Did you use it for business? Any records you can hold on to do it. You don't send them with your return, they're in case of audit only.[/QUOTE]

Yeah, cameras are for personal use as well.

Thanks for clarifying these.

Under 20,000 in a calendar year is considered a hobby......

[QUOTE=solt0131;16800728]Under 20,000 in a calendar year is considered a hobby......[/QUOTE]
So you're claiming no taxes need to be paid?
I'm not seeing this on the irs website.

[QUOTE=solt0131;16800728]Under 20,000 in a calendar year is considered a hobby......[/QUOTE]


No, no it's not.


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[QUOTE=solt0131;16800728]Under 20,000 in a calendar year is considered a hobby......[/QUOTE]

The IRS is going to have a field day with card collectors and flippers. An absolute field day.

The only tip you need - call your accountant (if you don't have an accountant....hire one). End thread.

[QUOTE=theleica;16800855]The IRS is going to have a field day with card collectors and flippers. An absolute field day.[/QUOTE]

Yes they are! Unless you're smart enough to have expenses greater than or equal to your income.

:)!

[QUOTE=solt0131;16800902]Yes they are! Unless you're smart enough to have expenses greater than or equal to your income.

:)![/QUOTE]


[QUOTE=theleica;16800855]The IRS is going to have a field day with card collectors and flippers. An absolute field day.[/QUOTE]


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[QUOTE=solt0131;16800728]Under 20,000 in a calendar year is considered a hobby......[/QUOTE]

No such thing as hobby income. Income is income.

It doesn't matter if you made $1 or $100,000 on cards...you pay Uncle Sam on those monies!

wouldn't income tax be based on the gain- e.g. you have a cost basis for each card and then you're paying tax on the gain not unlike a stock? Deriving a cost basis for each card would be a fun exercise