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Not sure why I am posting this here, but can't find a Tax Sub.

Below is the new section on Ebay about sales over $600. Notice the "No need to worry— you only pay taxes on profits." Fuck, who has invoices from 10-20 years ago? and no mention about "No need to worry— you also get to claim the loss on sales."

Buy a collector car 20 years ago (wasn't a collector car then) for $1,000 and sell it for $10,000 in 2022 = $9000 profit. Buy a Honda in 2010 for $10,000 and sell it in 2022 for $1000 = $9,000 loss. Can I claim the loss?

Ebay Policy: Here’s what you need to know Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales. The new tax reporting requirement will impact your 2022 sales and taxes that you file in 2023—it will not apply to your 2021 sales and taxes that you file in 2022. Throughout 2022, look for updates from us that will help explain what’s changed and what you need to do next. If you haven’t already given us your Social Security number (SSN) or Individual Tax Identification Number (ITIN), we’ll ask you to provide it once you reach $600 in sales. No need to worry— you only pay taxes on profits. You won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 last year and then sold it on eBay today for $700, that $700 you made would generally not be subject to income tax. While eBay is unable to give tax advice to our sellers, we want to help make dealing with taxes as easy as possible. Our goal is to help all sellers, casual or those selling as a business, with these new requirements.

Not sure why I am posting this here, but can't find a Tax Sub. Below is the new section on Ebay about sales over $600. Notice the "No need to worry— you only pay taxes on profits." Fuck, who has invoices from 10-20 years ago? and no mention about "No need to worry— you also get to claim the loss on sales." Buy a collector car 20 years ago (wasn't a collector car then) for $1,000 and sell it for $10,000 in 2022 = $9000 profit. Buy a Honda in 2010 for $10,000 and sell it in 2022 for $1000 = $9,000 loss. Can I claim the loss? Ebay Policy: Here’s what you need to know Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales. The new tax reporting requirement will impact your 2022 sales and taxes that you file in 2023—it will not apply to your 2021 sales and taxes that you file in 2022. Throughout 2022, look for updates from us that will help explain what’s changed and what you need to do next. If you haven’t already given us your Social Security number (SSN) or Individual Tax Identification Number (ITIN), we’ll ask you to provide it once you reach $600 in sales. No need to worry— you only pay taxes on profits. You won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 last year and then sold it on eBay today for $700, that $700 you made would generally not be subject to income tax. While eBay is unable to give tax advice to our sellers, we want to help make dealing with taxes as easy as possible. Our goal is to help all sellers, casual or those selling as a business, with these new requirements.

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[–] [deleted] • 4 pts

This is fucking ridiculous. Fuck Joe Biden.

[–] • 1 pt

The IRS,works independently of o'Biden&the White House,The IRS only answers to a select Senate committee.

Here,endith the lesson.

[–] • 1 pt

you can fuck him all you want but this his been in the works before this nigger became pres

[–] • 2 pts

Keep in mind - this applies to Venmo and PayPal as well.

A lot of people were using Venmo and PayPal to pay contractors without having to file 1099s. The contractors, as a result, were getting paid tax free.

The IRS figured this out, and this new $600 rule is the result.

So if you pay friends and family for anything that isn't actual contract labor, be sure you note somewhere on there that this is a "gift" such as "Happy birthday gift" or something similar or else you're liable to get hit. If it's a refund for them buying you food, or rent or anything, be explicit in every memo line so that the IRS can't claim you're paying someone without letting them take a chunk.

I fucking hate taxes.

[–] [deleted] • 4 pts

Taxes as they are now are a fucking scam. It's theft.

[–] • 3 pts

All taxes will always be theft

[–] • 2 pts

Worse than theft.

If someone tries to rob me in the street, I don't get imprisoned for evading it.

[–] • 1 pt

Actually the note should say something like "Jihad fund" or "ethnic cleansing".

[–] • 1 pt

Pay them in cash. Start using cash as much as possible. Fuck the IRS.

[–] • 0 pt

Assuming you're talking about paying your friends and family, in which case, absolutely if you can.

But some people have friends and family who live in other states, etc. In those situations, either make it clear in a memo, or send them a gift card via email or snail mail.

[–] • 0 pt

No I mean pay contractors cash. I always ask them if I pay cash if they will give me a 10-15% discount. If they are smart they say yes and I save 10% while he saves on taxes. We both win.

[+] [deleted] • 1 pt
[–] • 1 pt

I started backing off of eBay a lot. I’ve been active since 2000. Shipping is so fucking expensive. Fees are so fucking high. An example would be selling an iPad for $290. I probably could have waited it out for a few weeks and got a hair more but then waiting for maybe the supply of my item to drop so mine becomes a rare option that can fetch a bit extra backfires every time. So, I got the same sale price as I would if I could have found a local buyer. PayPal to $53!!! Shipping and insurance was approximately $19. I lost money. And I constantly lose money using eBay. The numbers just don’t make sense anymore.

[–] • 0 pt

I agree Ebay is no more stress than it's worth. But I have a few items I don't know where else to sell them.

[–] • 1 pt

It's a place to get something back if you want to get rid of things but it's hard to use it to make a buck anymore unless you're flipping some shit you've basically had given to you. I couldn't believe it when I saw that they took over $50 from that sale.

My brother and I both flip stuff on the side. Always have. We are always looking for deals. One thing that's working right now is just putting out some tables together on Sundays and taking some pics and posting it on Facebook marketplace. It's a mix of personal shit we are trying to get rid of and stuff we are trying to flip. It's actually been a really cool way to chat with neighbors. Best thing to come out of it were these kids who used to give me death stares when I'd come home because they'd have to pick up their shit from the street. They came over with their moms and dads and bought a bunch of stuff. We got to chat and now the kids don't look at me crazy anymore. Lol.

It's not done big operation so I'd hope we wouldn't get in any shit from johnny law. Not a lot of traffic or anything. Even have a cooperative effort going on as some neighbors have brought over stuff to sell for them and we split the take.

Problem is it will be 95 degrees here in no time and no way I'm gonna hang out outside in that.

[–] • 1 pt (edited )

If you were running a business, you'd claim the loss on schedule C, "Profit or Loss From Business."

However since cars generally depreciate, you're not selling it at a loss because the current value, per the "blue books," would be $1000.

[–] • 2 pts

yes if you run a business it's ok, but what if you clean out your house and sel all the junk and fine some junk valuable? The car selling was just one scenario. what about selling your $2 Pokemon card for $2000 (profit) and sell you $4000 telescope for $2000 (a loss). Ebay will report your total sales to the IRS as $4,000. Good luck arguing with the IRS that you profit is $0.

[–] • 0 pt

Sales of personal property generally is just income, regardless of if you sold it for less than the purchase price.

It's the yard sale doctrine of income. It's just money in your pocket - i.e. income - and you pay tax on it. You'd have to show original purchase price and depreciation to claim any kind of loss, and you get into a bunch of tax rules.

eBay has been shit for a long time, so if you're selling more than $600 it's probably best to be a sole proprietorship with cash accounting for tax purposes and take the time to record it.

[–] • 0 pt

You have to link your bank account to sell on eBay nowadays. No way to hide it anymore.

[–] • 0 pt

Amazon did this to its sellers years ago. "No requirement to provide your SSN if you don't sell over $600" immediately turned into "You MUST provide your SSN, just i case you MIGHT go over $600. We're just beig proactive, you know." I quit selling on Amazon because I had eBay. Now … the Jews got all the moneyed sites. Has anyone tried Gab Marketplace?

[–] • 1 pt

I tried offerup, but too many idiot "buyers" who never buy just look or ask "do you still have it".

[–] • 0 pt

They also want to attach a SSN to every transaction, to identity you, for when people who refuse the Covid jab or have forbidden political views are refused the right to buy or sell.

[–] • 0 pt

eBay just reports your gross sales. You report what, if any, was profit (or loss).

[–] • 0 pt

My point was that you can't report the loss on the sale of your depreciated 10 year old Honda, but must show the profit on the sale of your appreciated Integra R

[–] • 0 pt

I sell stuff on eBay. I just make sure to keep excellent records of each sale - taxes received on each sale, eBay fees on each sale, shipping costs on each sale, number of bubble mailers I used ($0.10 each), and price I paid for the item plus sales tax. At the end of the year it makes for easy addition. Then when I do my 1099-C at the end of the year, I just sum up the total sales plus taxes, and put down the deductions for taxes, office expenses, cost of goods and fees. Most of what I sell I either got for free (no cost of goods) or I purchased on sale from a big box store (cost of goods). I rarely sell stuff that is old and has depreciated value, but when I do I either have a record of the cost I paid or I estimate it (like my college books).

It's annoying, but it's a necessary evil because there are too many tax avoiders, sadly (mostly the hispanics and blacks doing digital payments under the table). We affluent peoples have to suffer.

I saw your other comments about OfferUp. I've sold and bought stuff from OfferUp. The buyers are assholes and always try to negotiate for pennies on the dollar, while sellers are mostly trying to scam you. I've been burned once on an iPhone I bought (it looked good and worked fine, but the screen was a third party install which needed a replacement but Apple made me pay for even though the phone was under warranty officially. The phone of course lost it's warranty with the third party install of which I wasn't aware at the time of purchase). Most people selling phones are either selling fake iPhones (Chinese androids), stolen and thus blocked, carrier locked, or phones they got from a carrier on a payment that have a remaining balance! There are a lot of scammers on OfferUp who try to get you to buy or sell off the app to avoid the 10% fee and of course never send the item. So I'm done with OfferUp for stuff I want to maximize profit. For stuff I want to get rid of at cost, I don't mind using it.

Craiglist is ok, but just not enough eyes to generate traffic/interest for selling. People don't post enough good stuff on CL to buy.

Nextdoor local app is pretty good. Rarely a scammer or an asshole because you have to register with your real name. The only problem is that you get a lot of buyers who have families and are therefore busy. Flaking is very common.

[–] • 0 pt

great input. I have one Ebay account run as a business selling new/almost new stuff and I have no problem with it as I have receipts. But my other Ebay account selling collectibles/art/owned forever old stuff I will have a big problem with. I have been thinning out my junk for a few years now and been surprised what some is worth (profit). But also, some old hardly used stuff is worth nothing (loss), hence the question what the IRS will do on claiming a loss. I have not found guidance on this issue.

[–] • 1 pt

The IRS is pretty fair on this topic. If you read up about depreciation and cost of goods, you can claim what you need to without worrying. It is best if you have a receipt but for most vintage stuff you've probably lost it. I sold some film cameras at $10 each. My mom gave them to me to get rid of. Problem is they were so old it was hard to determine the original purchase price (which I'm sure was $100 each at the time 30 years ago), and since my parents were the ones who bought it ages ago, I don't think I'd be allowed to claim the cost of goods since I received it for free as a gift (technically speaking). At $10 each, I didn't feel it was worth problems with the IRS to show so many sales with no profit, I'm not that cunning with my eBay sales. Now if I was like that guy ResaleRabbit on YouTube who does almost $600,000/yr in sales (not profit) on eBay (he shared his sales number in a recent video, not the profit numbers of course) then I'd start caring about COG and depreciation so as to maximize my profit for my business. Depreciation is big for him, I'm sure, as he buys so much shit that is old and not manufactured anymore. Old TV remotes, old VCRs, old t-shirts (in new condition), etc.

For the purposes of my taxes, I claim my eBay sales as a business and I get a little Trump QBI deduction. At $300 year I could technically claim it's a hobby and keep it all, but in my state the $600 limit was already in place for tax year 2021 and I had $1500 of transactions in PayPal that was submitted to the government as a 1099-K in 2021 (only $600 or so of the $1500 was taxable... lots of manufacturer rebates among other things). So considering I explained those eBay sales as a business in 2021, I figured it was in my best interest to continue reporting it even though it was well below $600 for tax year 2022 (I did less than $300 in profit last year). eBay has since changed payments to be self managed, but at the time in 2020 for TY2021 it was all going to PayPal.

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