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fb101
Administrator
USA
2856 Posts |
 Posted - 03/13/2009 : 16:28:32
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Food for thought.
Don't answer this.
I've been figuring for a couple of years that they would start going to ebay to find out who sells more than $XXX per year and than giving an amnesty for those who haven't declared ebay profits.
I just read the article on the swiss banks, and thought I should bring this up in case anyone hasn't filed their taxes yet.
They WILL be coming after you.
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slickeast
1000+ Penny Miser Member
USA
2533 Posts |
Posted - 03/13/2009 : 16:40:58
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W/O talking about myself
How would they determine if you made a profit or a loss on E-Bay?
Bought xyz item for $25.00 at the mall. Sold it for $22.00 plus fees.....for a loss of abc. |
You don't have to be the BEST you just have to be.......SLICK
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 03/13/2009 : 16:41:01
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Nothing to declare. I've never sold a thing. I have also wondered the same question about taxes paid on ebay income.... Anybody know the actual rules regarding those type of sales?
Deal |
Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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fb101
Administrator
USA
2856 Posts |
Posted - 03/13/2009 : 16:49:05
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| Slickeast; you don't want to be put into the position of having to prove that. You won't enjoy it. |
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natsb88
Administrator
USA
1850 Posts |
Posted - 03/13/2009 : 16:54:05
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| I'm not a tax expert, and I DO NOT offer any tax or legal advice, but if you do decent volume (define "decent") it would probably be considered a sole proprietorship, which means self employment tax (i.e. your profits count as income on your income taxes) and a Schedule C to fill out for state and federal (profit/loss). It's a couple extra forms, not a big deal (once you've done them four or five times....) |
Nate
The Copper Cave
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Edited by - natsb88 on 03/13/2009 16:55:12 |
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slickeast
1000+ Penny Miser Member
USA
2533 Posts |
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fb101
Administrator
USA
2856 Posts |
Posted - 03/13/2009 : 18:26:22
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The article both proves and attacks my position.
They are the gov't. If they tell ebay to give up the last three years worth, the will get it.
I don't know why I'm bothering to debate. If I'm wrong, Great!
I just believe that in an effort to take money from the populace, comrade geithner will go after it.
They've got to have villains to blame things on so they can turn the peoples heads from the truth.
They stand up there telling people about all the evil rich, but, by the way, which one of them is poor?
When TSHTF they'll blame tax cheats. And the suckers that buy into that s*** will follow them. |
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keys
Penny Collector Member
383 Posts |
Posted - 03/15/2009 : 18:05:16
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Technically, anyone who sells stuff at a yard sale is supposed to declare it on their income taxes. Most don't and the IRS doesn't usually waste its time chasing after small sums not declared on 1040 forms. They prefer to catch the big fish tax cheats which keeps the minnows in line.
The drawback to the arguement "I bought it for $25, I sold it for $22 minus fees" will only work if you declare yourself a business or sole proprietorship. If you are just selling stuff yourself you are expected to declare the sale price as income, no deductions. (I know, a real lousy way to treat the small seller, but thats the way the tax laws are rigged.)
If you declare yourself a sole proprietorship, you will also have to deal with the state department of revenue and local department of revenue. Governments all want their cut of the profits, which is why so many prefer to sell their stuff anonymously. Again, unless the eBay sales were a few thousand dollars, the IRS is unlikely to investigate (though unlikely and won't are two different things entirely.)
While grumbling about taxes, the Federal government yearly brings up the tax gap, the amount of money the IRS should collect but doesn't, currently the tax gap is estimated to be $300 Billion dollars. The thing that always bothered me about the tax gap is the fact that even if the IRS could collect all that money, there is no way to keep Congress from wasting all of that money without a second thought.
The $300 Billion Wouldn't be used to pay off the national debt, it wouldn't be used to prop up social security or medicare, it wouldn't be used to fix crumbling bridges or deteriorating infrastructure, it would just get wasted on some needless projects.
What is more, with the government printing money like crazy, the US will find it easier to print up $300 billion than try to collect that sum, so it is a weak arguement that the tax gap is hurting the government's coffers. Now, if Uncle Sam lived within a budget and money were honest and not phoney Fiat then the tax gap would be a problem for the US.
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I change with the times-
but like silver coins found in your change
I stay the same.
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The United States of America started out as the new Republic of Rome.
Will The United States of America end up as the New Imperial Rome? |
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slickeast
1000+ Penny Miser Member
USA
2533 Posts |
Posted - 03/15/2009 : 18:36:34
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I am not going to sit here and wonder if I am gonna get audited by the IRS (internal rip-off service) over the junk I sold on e-bay. Since most if not all where losses. Hardbacks fetch $1-$3 and the costs were $10+ each. So if they want to get into a pi____ war over a few bucks then I would just have to start doing all my costs and losses and itemize and have a tax write-off and let them owe me more at the end of the year.
They have a HUGE toilet that they put our tax money in anyways....TOP TOILET....AIG... Send us "(A)n (I)nstant (G)azzillion" dollars. WE ARE TOO BIG TO FAIL.....Maybe they need to stop being the toilet and start being the terd. |
You don't have to be the BEST you just have to be.......SLICK
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 03/16/2009 : 14:35:27
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As I understand it, this has already been passed. E-BAY and PayPal and others have until 2011 to comply. At which time, they will be forced to send the government and you a 1099 form reporting your sales if you have over 200 transactions per year AND the total of those transactions is $20,000 or higher.
So the mighty E-BAY takes another hit starting in 2011 and places like craigslist get a boost...
You must be logged in to see this link.
You must be logged in to see this link.
The good news is that the limits are fairly high...thanks to PayPal lobbyists.
Scary: "Originally legislation was looking like it was going to be targeted at casual sellers who took in more than $600 in electronic payments per year."
Got multiple accounts?  |
Edited by - horgad on 03/16/2009 14:41:33 |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 03/16/2009 : 14:45:42
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quote:
Originally posted by slickeast
I am not going to sit here and wonder if I am gonna get audited by the IRS (internal rip-off service) over the junk I sold on e-bay. Since most if not all where losses. Hardbacks fetch $1-$3 and the costs were $10+ each. So if they want to get into a pi____ war over a few bucks then I would just have to start doing all my costs and losses and itemize and have a tax write-off and let them owe me more at the end of the year.
They have a HUGE toilet that they put our tax money in anyways....TOP TOILET....AIG... Send us "(A)n (I)nstant (G)azzillion" dollars. WE ARE TOO BIG TO FAIL.....Maybe they need to stop being the toilet and start being the terd.
The messed up part is that if the IRS does come after you and they can prove that you sold a book for $3 and you can not prove what you paid for the book the IRS assumes that you paid 0 for it. But I agree there are better things to do than worry about the IRS. |
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Did you declare your ebay profits?
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