As someone who does ebay as a hobby to get rid of the excess junk around my house this kills ebay for me. Who in the world has receipts for stuff they had laying around their house for the last 10 years? Im not making a profit just getting rid of excess stuff around my house for a loss on the original purchase price I shouldn't be paying tax again on it. The original limits were very fair i think this $600 threshold is nuts for the average person.
So many elder people make small sell on ebay, just get couple $$ profit from item. I see often these kind of people in Goodwill where they buy cheap items for $1-$2. Like 75 years old mother of our made: She sales on ebay and her sells usually $100 - $200 per month (usually she sale her personal items and personal items her family give her for sale) and it is some help for her so small SSN around $800. Now this lady will pay tax from this money to help Biden bring criminals to America. 🤬
You don’t have to pay taxes on those kinds of items. Just because you get one of these forms doesn’t make it a taxable sale. Watch some of marks other videos
After years of selling cards on eBay, instagram, Reddit, etc… this is the nail in that coffin. The government already takes 40% of my commissions on sales at my actual job, now they want a piece of my very small side income? Hell no.
@@chevytheplayer Trump screwed the middle class too, as did Obama and Bush prior. It’s all the same song just a different verse. The entire political system we use needs to be overhauled.
@@Snarkapotamus Look around the world - there are a ton of different systems. It’s above my pay grade to say which is the best, however our current system obviously isn’t working. When you have half the country versus the other half, no progress will ever be made. It’s a volleyball essentially… going from one side of the net to the other. Having more than 2 political parties ideally would be the answer and getting away from identity politics as a whole.
I'm done reselling on major platforms now. This kills Ebay, Etsy and all the others now. I'm done. All this is going to do is destroy small businesses and hurt poor and working class people.(which are practically the same thing now)
I agree with you. I am done. It's not just because I don't want to pay taxes it's that I enjoyed selling below the threshold so I didn't have to bother with keeping receipts and monitoring everything.
This is more proof the IRS needs to be abolished. The $600 threshold will kill side gigs and garage sales along with any other means to make extra cash.
@@TideasOfficial There was talk in the past about abolishing the IRS and replacing our current tax system with a simple flat tax at around 9% across all income brackets. Loopholes would be eliminated and the forms would be reduced to one page. Herman Cain introduced this in his 2012 presidential bid, and Senator Ted Cruz also mentioned a flat tax.
That is completely unconstitutional ! So let’s get this straight. You can just be selling your old things on eBay, NOT as a business, which is stuff you bought with already income taxed money and likely also paid sales tax on, and now they want to tax you again on it as INCOME ?! It’s not income ! It’s recovering a little of your losses !
@@Charles_Anthony but even garage sales require permits and to be reported, isn't that crazy. i recently learned that and i couldnt really wrap my head around it. i guess it's not reinforced much but ???
@@Ari_Madrid lol where tf do you live? My neighborhood has an agreed upon garage sale day. Every Sunday every street have 3+ garage sales. People go through each neighborhood to shop. No permit nada. You can have your garage sale another day but you'll have a lot less customers because everyone knows to come on Sunday
What do you consider wealthy? And what is "fair?" I am in the 1%, and my effective tax rate (after all deductions) is 42%. That is including state taxes. The vast majority of people in that 1% are wage earners who get taxed extremely high rates. The people who are able to work into sub 10 and 20% tax rates are a very small group. I am in full agreement loopholes should be gone, but it amazes me how many people believe I don't pay taxes because I am in the hated 1%.
Wealthy people have the wealth to avoid paying more taxes then they are legally obligated to pay. This has been set up to squeeze the regular person. The Wealthy will always have the means to avoid paying taxes.
@@NOLA-vv3sz what's your secret to success? I'd like to make it to the 1% some day also. Seems like working an honest job can only get you so far. Definitely not into the 1% club.
I cannot believe the tax changes for 2022..I am dumbfounded how the IRS expects to keep up with the oversight anyway..many of us pay enough tax and look to side hustles as a buffer to stay afloat😬
The IRS will simply state you owe X amount. The onus is on you to prove them wrong. You are not innocent in the eyes of the IRS - you are guilty and you have to prove innocence. Been through this twice and had favorable outcomes both times becaus the IRS is simply guessing I have found.
Our government is 100% corrupted. Founding fathers would not fathom the extents we are taxed. Bloodshed is only way to save freedom forever or it will be too late... unfortunately majority are in a trance
@@johannadam3183 Regular Citizens don't start wars, the power structure corrupt politicians and corporations do. But Regular Citizens damn sure finish wars, every single time. So if push comes to shove yeah i'd volunteer. And I also volunteered to join the US Navy at 17. Would never re-enlist today with our corrupt government and knowing what i know now. But my oath to the constitution stays for life.
No new taxes on people making less than $400k lol. Now, I can't even sell my own personal crap at a loss without worrying about a scary and likely costly audit.
Just don't pay your taxes! Are they going to put everyone in prison? Federal income tax is not valid for 99% of americans. Read through the tax law before doing anything.
Oh, there's going to be a lot of surprised sellers getting their mail in early February of 23! I don't know about the other platforms, but Ebay has hardly even mentioned this so far. Going to be a crazy good time for Accountants next year when the stuff hits the fan. With less sellers ( make no mistake, it will certainly reduce number of sellers to some extent ) ,on Ebay in 23, it might force Ebay to make their platform more seller friendly, as they sweat how to regain the lost business, lol.
@@noahcooper6979 Yes, in the past, Ebay would do that if you were approaching 200, & 20K, & they, ( or PayPal in prior years ) would also suspend your account, but it didn't necessarily mean you would get it the following year, unless you went over both figures. Now, if you are asked to fill that out, it's because you are approaching $600, which is almost everybody, & to some who have been selling for a while , it's going to be like oh I've seen this before, it's just in case I go over 20k, & 200 transactions. There are those who are still in denial of the change.
Actually eBay fought this and had a huge grassroots movement with a big letter writing campaign and a lot of participation. But to no avail. eBay will continue to be a huge mover and shaker in the online selling world. But the ma and Pa sellers will be gone. Hopefully this will prove to be so obtrusive that it will be reversed to some extent. The banks are also in an uproar due to cost of account monitoring and privacy infringement
@@cindyinnew Yes, the banks are also being targeted similarly down to $600 on monthly individual account deposits, & that's an even bigger concern. It's such a small amount, that's not even rent money, so I guess it might be a good idea for people to open up a handful of checking accounts over the course of the next year, in case that gets implemented as well, because there's no law that says you can't have multiple bank accounts. We can hope, but I'm not holding my breath on the IRS reversing course, or partial course, in the future.
The story is always the same: the government gives a little money to a few people and raises everyone's taxes. I've lived my whole life in Latin America where government welfare keeps people poor and countries broken, but I never expected to see the same welfarism here in the US 😪
@@porth4250 same tax with lower limit = more people paying tax = bigger collection call it what you like, but the government is taking more money from the citizens
Ugh you got that backwards. Welfare started in America after the Great Depression and spread throughout the world. As world leaders around the world saw how well it kept people enslave to the government for life.
I’m not a reseller, I’m just selling stuff I’d collected over the years to make space. This whole 1099K thing is terrifying. I’m not trying to make a business selling things or having it be my side hustle, I just want these collectibles out of my house!
I know some people will list things on FB marketplace and yes people do say "Cash only". I'm not saying you do not have to report that as "income" but one reason you see a lot of "cash only" things on FB marketplace is... it simplifies things. Also garage sales.
Yeah same problem I have. This is really disappointing as im not making a profit or running a business but who has receipts from stuff collected 10 years ago unless your trying to run a business? At some point the government needs to just stop looking for how much they can take from everyone and start cutting all the wasteful spending!
Nice! Sell the iPhone you received as a gift and all of a sudden you’re a business. People don’t want the headache so whatever they can’t sell on Craigslist is going to be donated
Computers will just spit you out a bill. Eventually if you don't pay the bill they will come after you. Its up to you to go to the trouble to dispute the bill. Trust me, its going to get bad.
Agree. Can't wait to see the fallout. Very sad though, as many folks are hustling to put food on the table and already paying high tax. You have those who refuse to work, living off the government not paying any tax
Inflation soaring, the value of the dollar is falling and the government LOWERS tax reporting limits. Only hurts the lower classes. Looks like I’ll find another way to work around this too
I hope you are not that stupid. Stuff you sell on ebay was always taxable (if you make a profit), ebay just didn't send you and the irs a letter saying how much you sold for. If you didn't report it prior, you were evading taxes, and trust me, both parties want this. The process started under Trump.
This documentation has already existed for years... closing a loophole you've been taking advantage of doesn't mean it will continue. Also, Republicans and Trump increased taxes for next 8-10 years before he left office.
This doesn't just affect Paypal and Online Sellers...but even regular banking and large cash deposits. This is the epitome of Big Brother dipping their fingers into every aspect of your financial life. Looks like more people are going to be keeping safety deposit boxes just for cash or using their cash from sales to buy gift cards.
@@michellecd4722 It's honestly getting to that point. No safe deposit boxes aren't FDIC insured but it's better for some things especially in case of a flood or fire.
If your ebay income is $25,000, that is NOT profit. You had to pay something for the items that you sold! I’m just going to switch to cash transactions thru Craigslist or other tools.
I would say if you're a small seller DON'T try to report a loss on Ebay because it makes you a lot more likely to be audited, so unless your books are almost perfect and you can prove every deduction, don't report a loss. I personally just deduct cost of goods, shipping/supplies and fees. That way I report a profit to help my taxable income be higher, but not by so much that I owe a lot in taxes. If you also overpay your taxes from your regular job that can help pay for the tax bill.
The IRS looks at individuals who report losses multiple years and asks, "if they keep losing money, why do they keep the business going?". They've got a point, it does look fishy.
You cannot take a loss on sale of personal items..a business that isn't profitable after few years becomes hobby in eyes of IRS..IRS won't audit small online sellers as there's no $$ to go after...
This sucks! I mean I'm from MA and so I've been dealing with this change for a while now but to see everyone else now getting killed by this sucks. That covid money was not free it never was!
Thank you for the information. All I am doing is selling junk around my house that I have had for years and I have already paid taxes on the stuff once. I will not file a 1099k.the hell with the irs.
Been self-employed for years and deductions/depreciation are just part of the game...no biggie! That being said, it REALLY pays to have a tax strategy when you start actually making a profit.
@@kennethtran4706 - "It ain't bragging if you can do it" - Dizzy Dean And my advising you have a tax strategy is more helpful than anything you've added. It's the only way you're ever going to be truly successful at reselling...
@@Snarkapotamus Ive actually replied to other comment with useful info. IMO more useful than "have a tax strategy". That is too general. You pretty much saying in order to not have a tax problem is don't have a problem. This doesn't help most smaller resellers because we don't have deductions like a full time reseller. We don't have receipts because the game has changed while we were still playing by the old rules.
what do you do when you send your kids money for school etc. they will get a 1099K as well but are not a business and I am allowed to send up to $15K per year to them without reporting it. how will they be able to not pay taxers on it? I hate the government.
been doing online sales full time for 6 yrs.. The way to offset these new tax laws in reinvest in the business, build an actual home office, start going to business related events . etc etc
How does this affect people selling used items on eBay as an individual? Do we have to document that items were purchased new and then sold years later at a loss?
As an accountant, I have to say I haven't seen a panic like this since about 1986. There was much anger and many complaints then over a new tax law. It required most dependents to have social security numbers. By the time the law took effect a year or so later, a number of children had mysteriously gone to live with ex-spouses, or other relatives. The kids must have thrived in their new households, as they never returned. All the parents, most oddly, didn't seem to miss them. Except at tax time.
Translation - Govt: "The people need us! Let's make the little guy pay for it!" Little Guy: "Why not the rich? We're overtaxed!" Govt: "But that's us..."
Such a low amount. Think of the millions of people who may sell their old iPhones on an online platform. They won’t be aware of the law change, and will get a surprise in the mail.
It's my understanding that selling items that you previously purchased would not be considered taxable. This only applies to income, such as from a service or product you provide.
Yep, thanks government for the relief efforts. we knew money was going to have to come from somewhere many where's. LOL. And just when I'm thinking of selling my huge toy collection over the next year too but guessing eBay is not going to be the place to do it now
First of all shout out to Josh (Hairy Tornado) for dropping your channel in his video. I am so happy to find your content it is very helpful! I am a part time seller who did $20K in sales in 2021 and looking to increase that to $20-30k. I have been doing my own records and taxes however with what appears to be further scrutiny coming in 2022 would it be easier to apply for an EIN or is it best just to continue to do the schedule C and combine my full and part time income?
This new tax code really negatively affects those people like myself who might sell way more than $600 per year in used personal use items, which are sold at a loss. Right now I don't know of any form to account for this as losses for personal use items do not offset gains. I suppose the IRS will make a new for this purpose? This is sad because now we'll have to itemize to the IRS every single item we owned, how much we paid for it, and how much we sold it for. Very invasive -- "oh I see he likes guns.. oh he sold an AR-15 at a $100 loss." And you have to keep the receipts for all items you buy to prove cost basis.
Same here but with uber they will report your earnings to the IRS or send them a copy of your 1099-misc and they already know how much you made. I think with lyft they don't send a copy of your 1099-misc to the IRS you got to report that yourself. That what they told me
So if the I.R.S. wants to tax ebey do this. Buy something you are going to use say example 500 dollars. after a couple of years resell that item on ebay. Now keep your original receipt.. Since this is now a business you paid 500 and only got 150. So 350 dollars is a loss on your taxes as a business. A sloppy one.. That is the system they just legally created.. AWESOME!!! YEAH!!!!
Nice. Love it. As a small business owner I pay so much in taxes already and it just keeps rising and rising.... but gotta figure a way to make it happen
So you want to say you don't use any of crazy amount of deductions that make your effective tax rate fall in range of 12-19%? you're doing your taxes wrong and whining about it on youtube?
@@yuriib5483 no not at all. I deduct a ton off. I'm not wining. I'm just saying as a small business owner with 1 other employee it's insane how much I pay
Taxes should ONLY be collected on profits only, not gross revenue. The government/IRS knows that 95%+ of casual sellers selling items that they acquired 10,15, 20+ years ago will not have kept receipts to prove original cost. Therefore, they will be wrongfully taking advantage of these people by taxing on gross revenues, not profits. This should be illegal.
It is very FAIR. If you had wages or interest income then you would get a W2 or 1099 and report it. Why should resellers get away without paying taxes like everyone else?
THANK YOU! It's not just people selling a few things they make themselves anymore, even ETSY is full of "I bought a lot of this from AliBaba and am reselling it". One of my fellow ETSY sellers told me if it is sold on ETSY, they already take so much money out that you don't have to pay taxes. (she also was confused that ETSY takes out STATE taxes, and I had to explain that's not Federal taxes). It's money, if you had a relative give you a large check, you'd have to pay taxes on that also.
The vast majority of us pay a shitload of tax on our jobs already and our gas and our food and our sales tax and everything else keep licking that boot though I'm sure it taste good. Disregard the fact that healthcare food housing costs are exploding but God forbid anyone try to make a few extra dollars to survive I'm sure daddy government needs it so they can use it to change the weather.
This was quite a valuable video, thanks for explaining everything so clearly. I have an expense question that I haven't seen answered anywhere and it's been keeping me from reselling a lot of things I bought at yard sales and flea markets for 20 years but I don't have any records about the cost to me of those items. What in this case should a reseller claim as cost of goods sold?
I'm planning a video on this soon! Bottom line is you'll need to estimate the original cost. Or if the current market value is lower than the estimated original cost you can use that, however the market value is so subjective...
@@notyourdadscpa So I guess this means for taxes, estimating the cost of each item when it's sold, in other words the accrual method. To answer the tax form questions about inventory value at the beginning and end of the year, must I go through everything I collected over 20 years and establish/record an estimated value for each item to start out? Or can I start with zero $ in inventory at the beginning of reselling year 1 and move some items from my personal collection into inventory each year as I list them to resell, and establish COGS and ending inventory for each year that way??
@@notyourdadscpa That's the best possible process I could imagine. That would result in a zero inventory value at the beginning and end of every year, neat and tidy! Thank you for your time and expert opinion. Am looking forward to watching your future videos (already watched all your previous titles) and to continuing to learn from you.
And how is the IRS going to know if a payment send / payment received is taxable? I borrow $500 from mom and pay her back in 4 hours. That's $1K in tax both of us pay? $200 each taxable income. Your guilty until proven innocent? I use Venmo and Zelle all the time. Every single transaction will be considered income until proven wrong to IRS. So everyone needs to walk around with a journal writing down notes 24-7? ....QUESTION..... the 1099K is sent to IRS next year. $4K on Venmo records. Mom sends me $400 a month for college expenses. Both of us screwed. Do i claim that or not claim if not income. If i claim it i have to be taxed. I don't claim it bam audit. Loose loose situation. Can't win...
No. This is only for business transactions. This is not anything new and is always been around specially if you are familiar with PayPal. Difference is friends and family vs goods and services.
@@mikeytek ---Duh. Everyone knows that good and services vs, family and friends. But the IRS doesn't now the difference. Every transaction is and will be business until proven otherwise. your already guilty.
This is going to actually hurt the overall economy. Many small time resellers are just going to exit the game and there goes all that sales tax revenue, etc. This is a joke. $600 and 1 transaction. This is nuts.
I am so happy about this. Before I started reselling I consulted my accountant and have always been paying taxes and taking deductions. I always felt like I was at a disadvantage to people who didn't pay taxes because they could afford to sell items for a lower cost. I think this will level the playing field.
you are happy about more govt intrusion into your life? What is wrong with you, this will not level the playing field, it will eventually kill your business.
What a dummy, you did not need to consult your accountant. Just take your money and relax. Sounds like a goodie two shoes that made small money and got jealous everyone else made it large. No one sold their items for lower cost to save money on tax. I can almost guarantee that Kristie was NOT a successful seller at all
The reduction is insane. How do they go from a $20K threshold down to only $600? I’ve had an eBay store for 20 years, just selling here and there, but I could hit the new threshold in just a couple months. $10K would make more sense.
If you have had an eBay store for 20 years then you know you should have been reporting your sales income for the last 20 years and claiming expenses and deductions if its not taxable income. What your saying is you have been using tax evasion for 20 years to make sure you didn't pay tax on any sales and now your mad they are closing the loophole. The best explanation i saw of this in the comments was "its like your upset the neighbors changed their wifi password after you were mooching off them for years" same concept. Time to do the bookwork. I have been on eBay since the early 2000's also, but i have been doing my taxes the entire time.
Thankyou! We starting auctioning on whatnot this year. Were at a gross sales of about 25k. Were very confused and stressed about taxes this year. We didnt think we had to claim, but now were thinking otherwise
I have been cleaning out the house and selling on Ebay items I have purchased at full price over the years. I am not a reseller but will get a 1099K because the items sold for >$600. How is that handled?
Yes, plz do a video on this. Selling your own items less than what originally paid but wouldn't have receipts. If over $600 total sales how do we handle. Thanks!!
This means that I will no longer be using Ebay, Etsy, or Reverb to sell old used things. Seriously, I'm not going to give Uncle Sam a single penny from selling a guitar I've had for 20 years. After all, I can not write off 20 year's worth of storage and maintenance for that guitar. I'll just sell EVERYTHING privately and for cash going forward because I do not want the hassle. Bye bye Ebay and Etsy.
Indeed I'm from Massachusetts and back in 2017 on the announced to me they changed it to $600 threshold and I was hit with 1099k from selling books on Amazon..
I've been reporting my eBay income since I started in 2001. I get my deductions when I have my taxes done. I drive a lot so my milage claim is important. I also do scrap metal, born from parting out church and home organs, a big part of my eBay items so, I report that income as well. I get a print out of my scrap metal monies I get and includes each trip made. I no longer do eBay ( since being scammed by PayPal in Sept of 2019 ), after being scammed by PayPal on keeping fees even after a full refund, due to scammers from the Pacific rim trying to use PayPal policies against sellers by sending name and address info in foreign script. So now, it's just scrap metal. But, the timing of this realization that will hit in 2023 , and those who have purped this ...couldn't be better when election time comes.
If you think that the "other" party is going to treat you much better, I think you will be sadly mistaken. In the US, you are not a citizen, you are a worker, regardless who is in power. And in the EU it isn't much better. We aren't corporations, so we don't get to dictate the government.
@@mathisnotforthefaintofheart: You seriously forget what party came up with this nonsense. Here's a hint, the guy who signed this into law increased inflation and has dementia.
Hey Mark, what if you transfer money between your different bank accounts via Zelle or similar platforms, and not selling or getting this money from sales. Simply transferring money between my own accounts. Will I need to pay taxes and report these transfers of money between my own accounts?
Great video Mark! I would love to see more information for those of us who have not received 1099s in the past and just filed schedule c's. In 2023 when we get the 1099 how will we make our deductions? For example my husband and I both have full-time jobs and take a standard deduction so how would we then deduct for just reselling expenses. If that makes sense...
Business deductions are different from your standard or itemized deductions. You write off the expenses on your Sch C itself. The net profit or loss then is included in your adjusted gross income, and then your standard deduction reduces agi to get taxable income.
This question doesn't make sense. If you've been filing a schedule c then a 1099 is jist adding more income to your self employment. If you didn't have anything to write off it'd irrelevant to the 1099
Nothing is changing here. You file the schedule c as always. You don’t even list 1099ks on your return, your return is simply checked against the 1099ks the irs receives.
@@ItsDan123 You have to report the 1099’s exactly as received. What do you mean it’s only verified by the IRS? If she doesn’t report the 1099s…then she will be double reporting income.
I have nothing to hide, but I wish the IRS would expend A LOT MORE resources on auditing millionaires and billionaires not so much of their limited resources looking for tax cheats among " regular folks ".
This is awful! So what if I purchase something like a bicycle at a store use it for a few years and sell it for $650 on eBay. So I’m going to be taxed for something i’ve already been taxed on?
Tripled taxed. Taxed on the income u made to pay for it, taxed when u bought it, and now taxed when u sell it. All to fund absurdly rich politicians who stay in office their whole lives and terrorists groups around the world. Gotta love this country!
What about selling personal items around the house? My understanding is those are not considered taxable income. How do you prove it was personal and not something you bought for resale?? Thank you!
You never make money selling personal items around the house. It's like having a garage sale. Does anyone sell things at a garage sale for more than they originally paid for it? No. But keep in mind you can"t take a loss on the sale of a personal item either. So basically nothing gets reported in the situation you've described. I'm a 40 year CPA by the way.
@@earlgarcia2736 So how is it reported given that it triggers a 1099K? I assume you don't ignore 1099K's no matter what triggers them. So what IRS form is used to "report the old various personal property crap sold on Ebay like a virtual garage sale". Does IRS expect me the know the cost basis of Grandpa's 100 year old pocket watch, etc?
@@cottydry Exactly what I am wondering. I do not have receipts for items around my house I'm wanting to sell, such as.....my 15 year old expresso machine, a 20 year old tent, various camera bags, and down jackets. I paid retail for all of these, and for sure, I will be reselling these for less than what I paid for them. Can I estimate the cost?
@@earlgarcia2736 Hi Earl. I have about $1700 in sales since signing with Ebay's forced managed payments system. Being in a state that requires a 1099k form for 2021 at a lower threshold when I file what is the best method? I have no other income for the year 2021 sadly. I here and there sold personal and used items using the free Ebay listings (not a store). Is that considered self employment or do I attach the 1099 form and on schedule C put estimated amount of items and loss or capital gain? Thank you
Is this just for businesses or personal people too. Im unemployed and have been selling everything i own to make ends meet. And now i have to be taxed on selling all my stuff?
You might want to find other avenues to sell now. This going to text the crap out of things... The things we already paid taxes on, spent money on. And have to go through hassle to prove what the actual profit is on the tax forms I'm guessing.
If you already paid say 100 dollars for something and sold it for the purchase price or less than,its not profit.no need to report it..if you buy used cars and flip them for more,than you report it..if you do a side jobs and make $600+ you report it
In a way I'm glad their going after some of these hardcore sellers, Every time I would go into goodwill to shop or take a look around, these resellers would jump the bins and knock me to the floor to try and get the collectible goods that they can resell on eBay
![[TH] VALORANT Champions Seoul - Lower Bracket Final - LEV vs TH](http://i.ytimg.com/vi/fyYkI80GG4o/mqdefault.jpg)
The IRS' Christmas present to you this year is that they are delaying the $600 for 1 extra year until 2023! Make sure you get it together this year!
As someone who does ebay as a hobby to get rid of the excess junk around my house this kills ebay for me. Who in the world has receipts for stuff they had laying around their house for the last 10 years? Im not making a profit just getting rid of excess stuff around my house for a loss on the original purchase price I shouldn't be paying tax again on it. The original limits were very fair i think this $600 threshold is nuts for the average person.
Blame Biden.
It’s to do nothing but STEAL from the people in the 1700s this would be WAR weaker times ig
So many elder people make small sell on ebay, just get couple $$ profit from item. I see often these kind of people in Goodwill where they buy cheap items for $1-$2. Like 75 years old mother of our made: She sales on ebay and her sells usually $100 - $200 per month (usually she sale her personal items and personal items her family give her for sale) and it is some help for her so small SSN around $800. Now this lady will pay tax from this money to help Biden bring criminals to America. 🤬
You can try just selling the items locally instead.
You don’t have to pay taxes on those kinds of items. Just because you get one of these forms doesn’t make it a taxable sale. Watch some of marks other videos
After years of selling cards on eBay, instagram, Reddit, etc… this is the nail in that coffin. The government already takes 40% of my commissions on sales at my actual job, now they want a piece of my very small side income? Hell no.
elections have consequences
@@chevytheplayer Trump screwed the middle class too, as did Obama and Bush prior. It’s all the same song just a different verse. The entire political system we use needs to be overhauled.
@@Apex-rl4fb - And replaced with what?
@@Snarkapotamus Look around the world - there are a ton of different systems. It’s above my pay grade to say which is the best, however our current system obviously isn’t working. When you have half the country versus the other half, no progress will ever be made. It’s a volleyball essentially… going from one side of the net to the other. Having more than 2 political parties ideally would be the answer and getting away from identity politics as a whole.
The government does not take 40% of your sale let's get real here lmao.
I'm done reselling on major platforms now. This kills Ebay, Etsy and all the others now. I'm done. All this is going to do is destroy small businesses and hurt poor and working class people.(which are practically the same thing now)
I agree with you. I am done. It's not just because I don't want to pay taxes it's that I enjoyed selling below the threshold so I didn't have to bother with keeping receipts and monitoring everything.
It’s more than just that. You want to give money to someone to help you pay rent? Whelp, that is now taxed! Yeah!
@@howardbaxter2514 no it isn’t
Same thing I said this is overreach plain and simple this is not going after rich people
Literally what are poor people supposed to do except something illegal that the IRS won't rob us of?
This is more proof the IRS needs to be abolished. The $600 threshold will kill side gigs and garage sales along with any other means to make extra cash.
And replace with what exactly?
@@TideasOfficial There was talk in the past about abolishing the IRS and replacing our current tax system with a simple flat tax at around 9% across all income brackets. Loopholes would be eliminated and the forms would be reduced to one page. Herman Cain introduced this in his 2012 presidential bid, and Senator Ted Cruz also mentioned a flat tax.
@@johncady9780 a flat tax is a regressive taxing scheme.
Thank Biden for the 600 threshold. That guy is so incompetent.
The guy who picks up an extra shift gets taxed, so should you bud
That is completely unconstitutional !
So let’s get this straight. You can just be selling your old things on eBay, NOT as a business, which is stuff you bought with already income taxed money and likely also paid sales tax on, and now they want to tax you again on it as INCOME ?! It’s not income ! It’s recovering a little of your losses !
It is time to return to garage sales.
Yep, THIS is why we need a new rev0lution where our leaders need to be hanging off streetlamps with dead cops in the streets who tried to stop us!
@@Charles_Anthony but even garage sales require permits and to be reported, isn't that crazy. i recently learned that and i couldnt really wrap my head around it. i guess it's not reinforced much but ???
@@Ari_Madrid: There's a similar law in my County, but it's rarely enforced. Cops have better things to do then harass people holding a garage sale.
@@Ari_Madrid lol where tf do you live? My neighborhood has an agreed upon garage sale day. Every Sunday every street have 3+ garage sales. People go through each neighborhood to shop. No permit nada. You can have your garage sale another day but you'll have a lot less customers because everyone knows to come on Sunday
Essentially a tax on the little guy.
Either way taxation is theft
are they going to treat the wealthy the same way, close loopholes, audit them and make them pay their fair share?
Pharma covid vax and boosters brings money and even other countries have to pay up! But shaking up the people seems more profitable?
What do you consider wealthy? And what is "fair?" I am in the 1%, and my effective tax rate (after all deductions) is 42%. That is including state taxes. The vast majority of people in that 1% are wage earners who get taxed extremely high rates. The people who are able to work into sub 10 and 20% tax rates are a very small group. I am in full agreement loopholes should be gone, but it amazes me how many people believe I don't pay taxes because I am in the hated 1%.
Wealthy people have the wealth to avoid paying more taxes then they are legally obligated to pay. This has been set up to squeeze the regular person. The Wealthy will always have the means to avoid paying taxes.
@@NOLA-vv3sz what's your secret to success? I'd like to make it to the 1% some day also. Seems like working an honest job can only get you so far. Definitely not into the 1% club.
@@NOLA-vv3sz most of the 1% haters I've met won't be satisfied until you're paying at least 99% taxes.
Lobsters in a pot..
If govt would just make tax code simple like other countries, they wouldn’t have such a cluster to deal with.
Power comes from complicating & confusion, in which information flow is controlled.
Mark, I am so happy you are here to help us. A CPA and a reseller! It’s going to be a nightmare.
I cannot believe the tax changes for 2022..I am dumbfounded how the IRS expects to keep up with the oversight anyway..many of us pay enough tax and look to side hustles as a buffer to stay afloat😬
The IRS will simply state you owe X amount. The onus is on you to prove them wrong. You are not innocent in the eyes of the IRS - you are guilty and you have to prove innocence. Been through this twice and had favorable outcomes both times becaus the IRS is simply guessing I have found.
Our government is 100% corrupted. Founding fathers would not fathom the extents we are taxed. Bloodshed is only way to save freedom forever or it will be too late... unfortunately majority are in a trance
@@globalistswilllose i volunteer you to fight for us
@@johannadam3183 Regular Citizens don't start wars, the power structure corrupt politicians and corporations do. But Regular Citizens damn sure finish wars, every single time. So if push comes to shove yeah i'd volunteer. And I also volunteered to join the US Navy at 17. Would never re-enlist today with our corrupt government and knowing what i know now. But my oath to the constitution stays for life.
@@rustygold1958 howd you escape it
No new taxes on people making less than $400k lol. Now, I can't even sell my own personal crap at a loss without worrying about a scary and likely costly audit.
Just don't pay your taxes! Are they going to put everyone in prison? Federal income tax is not valid for 99% of americans. Read through the tax law before doing anything.
Are you saying don't file?
Oh, there's going to be a lot of surprised sellers getting their mail in early February of 23! I don't know about the other platforms, but Ebay has hardly even mentioned this so far. Going to be a crazy good time for Accountants next year when the stuff hits the fan. With less sellers ( make no mistake, it will certainly reduce number of sellers to some extent ) ,on Ebay in 23, it might force Ebay to make their platform more seller friendly, as they sweat how to regain the lost business, lol.
eBay could come crawling back to me with a rose in it's teeth and I wouldn't go back. I hate eBay.
Ebay sent out a thing that makes your account suspended if you don't enter your 9 digit ssn so you can fill out a 1099-K
@@noahcooper6979 Yes, in the past, Ebay would do that if you were approaching 200, & 20K, & they, ( or PayPal in prior years ) would also suspend your account, but it didn't necessarily mean you would get it the following year, unless you went over both figures. Now, if you are asked to fill that out, it's because you are approaching $600, which is almost everybody, & to some who have been selling for a while , it's going to be like oh I've seen this before, it's just in case I go over 20k, & 200 transactions. There are those who are still in denial of the change.
Actually eBay fought this and had a huge grassroots movement with a big letter writing campaign and a lot of participation. But to no avail. eBay will continue to be a huge mover and shaker in the online selling world. But the ma and Pa sellers will be gone. Hopefully this will prove to be so obtrusive that it will be reversed to some extent. The banks are also in an uproar due to cost of account monitoring and privacy infringement
@@cindyinnew Yes, the banks are also being targeted similarly down to $600 on monthly individual account deposits, & that's an even bigger concern. It's such a small amount, that's not even rent money, so I guess it might be a good idea for people to open up a handful of checking accounts over the course of the next year, in case that gets implemented as well, because there's no law that says you can't have multiple bank accounts. We can hope, but I'm not holding my breath on the IRS reversing course, or partial course, in the future.
Remember to pay taxes on items you looted from LV, Gucci and other stores
really....that is a new law I read. ALso, they need to add in the unemployment freebies by the thousands
👍
Ha Ha
They said so
Bahahaha! That's covered under the "mostly peaceful demonstration" deduction rule though!
The story is always the same: the government gives a little money to a few people and raises everyone's taxes.
I've lived my whole life in Latin America where government welfare keeps people poor and countries broken, but I never expected to see the same welfarism here in the US 😪
This isn’t a tax hike, it’s a documentation change that increases compliance with already existing rules.
Democrats.
@@porth4250 same tax with lower limit = more people paying tax = bigger collection
call it what you like, but the government is taking more money from the citizens
We have a lot of people that believe that the government has a monopoly on generosity as well as giving people upward mobility.
Ugh you got that backwards. Welfare started in America after the Great Depression and spread throughout the world. As world leaders around the world saw how well it kept people enslave to the government for life.
selling stuff i don't use from my house is not a business!!!!! greedy little politicians need their hands into everyone else business!!!!
Your right and you won't be taxed unless you sell for gain
I’m not a reseller, I’m just selling stuff I’d collected over the years to make space. This whole 1099K thing is terrifying. I’m not trying to make a business selling things or having it be my side hustle, I just want these collectibles out of my house!
I know some people will list things on FB marketplace and yes people do say "Cash only". I'm not saying you do not have to report that as "income" but one reason you see a lot of "cash only" things on FB marketplace is... it simplifies things. Also garage sales.
Yeah same problem I have. This is really disappointing as im not making a profit or running a business but who has receipts from stuff collected 10 years ago unless your trying to run a business? At some point the government needs to just stop looking for how much they can take from everyone and start cutting all the wasteful spending!
Congratulations you are now a business owner enjoy your self employment tax vote blue no matter who yay!!!
Nice! Sell the iPhone you received as a gift and all of a sudden you’re a business. People don’t want the headache so whatever they can’t sell on Craigslist is going to be donated
61% of Americans paid no federal income taxes in 2020, Tax Policy Center says
Well this sucks for anyone that's making a side hustle this will bring your tax bracket amount up
Seems like the IRS can’t properly handle the volume of tax returns/issues as is now. This shift will only make things worse.
Computers will just spit you out a bill. Eventually if you don't pay the bill they will come after you. Its up to you to go to the trouble to dispute the bill. Trust me, its going to get bad.
Agree. Can't wait to see the fallout. Very sad though, as many folks are hustling to put food on the table and already paying high tax. You have those who refuse to work, living off the government not paying any tax
They want to hire 84,000.00 new IRS worker .
@@Jakilyn what's worst? Poor Americans or trillion/yr military spending.
@@therebellion6911 "they will come after you" LOL
Inflation soaring, the value of the dollar is falling and the government LOWERS tax reporting limits. Only hurts the lower classes. Looks like I’ll find another way to work around this too
The IRS is out of business. Do NOT pay your taxes as they are illegal.
Is jail time an option? lol
I thought Democrats said tax the rich? I guess they meant people’s side hustles
I hope you are not that stupid. Stuff you sell on ebay was always taxable (if you make a profit), ebay just didn't send you and the irs a letter saying how much you sold for. If you didn't report it prior, you were evading taxes, and trust me, both parties want this. The process started under Trump.
This documentation has already existed for years... closing a loophole you've been taking advantage of doesn't mean it will continue.
Also, Republicans and Trump increased taxes for next 8-10 years before he left office.
This doesn't just affect Paypal and Online Sellers...but even regular banking and large cash deposits. This is the epitome of Big Brother dipping their fingers into every aspect of your financial life. Looks like more people are going to be keeping safety deposit boxes just for cash or using their cash from sales to buy gift cards.
@@michellecd4722 It's honestly getting to that point. No safe deposit boxes aren't FDIC insured but it's better for some things especially in case of a flood or fire.
Days of the small business are coming to an end. Not worth it if most of your profit goes towards taxes and overhead expenses along with labor.
If your ebay income is $25,000, that is NOT profit. You had to pay something for the items that you sold! I’m just going to switch to cash transactions thru Craigslist or other tools.
I would say if you're a small seller DON'T try to report a loss on Ebay because it makes you a lot more likely to be audited, so unless your books are almost perfect and you can prove every deduction, don't report a loss. I personally just deduct cost of goods, shipping/supplies and fees. That way I report a profit to help my taxable income be higher, but not by so much that I owe a lot in taxes. If you also overpay your taxes from your regular job that can help pay for the tax bill.
Thanks for the tip. Best tip yet.
The IRS looks at individuals who report losses multiple years and asks, "if they keep losing money, why do they keep the business going?". They've got a point, it does look fishy.
@@jimmitchell6000 yup, if you make below a certain amount it isn't worth it to save maybe 300-500 dollars at the risk of getting audited
You cannot take a loss on sale of personal items..a business that isn't profitable after few years becomes hobby in eyes of IRS..IRS won't audit small online sellers as there's no $$ to go after...
I gave blood today and got some juice and a cookie afterwards. Is this considered a income?
Yes, report it or off to the gulags you go.
This sucks! I mean I'm from MA and so I've been dealing with this change for a while now but to see everyone else now getting killed by this sucks. That covid money was not free it never was!
Thank you for the information. All I am doing is selling junk around my house that I have had for years and I have already paid taxes on the stuff once. I will not file a 1099k.the hell with the irs.
Same here I am an independent contractor for lyft....
Thank you for the clarity and ease of understanding the new, and my mind illegal taxation from our overbearing, overspending government.
Been self-employed for years and deductions/depreciation are just part of the game...no biggie! That being said, it REALLY pays to have a tax strategy when you start actually making a profit.
well la di da mr fancy pants
@@kennethtran4706 - What are you, like 5? That's one of the most childish replies I've ever gotten in my 25-years+ online...
@@Snarkapotamus Just saying what most are thinking. Your comment doesn't help the small time sellers. Almost like you were bragging.
@@kennethtran4706 - "It ain't bragging if you can do it" - Dizzy Dean
And my advising you have a tax strategy is more helpful than anything you've added. It's the only way you're ever going to be truly successful at reselling...
@@Snarkapotamus Ive actually replied to other comment with useful info. IMO more useful than "have a tax strategy". That is too general. You pretty much saying in order to not have a tax problem is don't have a problem. This doesn't help most smaller resellers because we don't have deductions like a full time reseller. We don't have receipts because the game has changed while we were still playing by the old rules.
They needed to get those stemmy payments back somehow. Free money is never free.
what do you do when you send your kids money for school etc. they will get a 1099K as well but are not a business and I am allowed to send up to $15K per year to them without reporting it. how will they be able to not pay taxers on it? I hate the government.
Tell them to pull themselves up by the bootstraps?
been doing online sales full time for 6 yrs.. The way to offset these new tax laws in reinvest in the business, build an actual home office, start going to business related events . etc etc
How does this affect people selling used items on eBay as an individual? Do we have to document that items were purchased new and then sold years later at a loss?
I have a video on my channel answering this question.
The IRS say's that you must report all income , both legal & illegal , they want their cut period .
The 4 thumbs ups were from IRS agents
This is the best video on this subject that I've seen. Simple, honest and direct. Thank you.
As an accountant, I have to say I haven't seen a panic like this since about 1986. There was much anger and many complaints then over a new tax law. It required most dependents to have social security numbers. By the time the law took effect a year or so later, a number of children had mysteriously gone to live with ex-spouses, or other relatives. The kids must have thrived in their new households, as they never returned. All the parents, most oddly, didn't seem to miss them. Except at tax time.
Haha I wish you put out videos! I love all your comments!
Translation -
Govt: "The people need us! Let's make the little guy pay for it!"
Little Guy: "Why not the rich? We're overtaxed!"
Govt: "But that's us..."
Such a low amount. Think of the millions of people who may sell their old iPhones on an online platform. They won’t be aware of the law change, and will get a surprise in the mail.
It's my understanding that selling items that you previously purchased would not be considered taxable. This only applies to income, such as from a service or product you provide.
@@alexmohammadi3828 might as well just say you owned everything you sell
Cash only transaction. I don't have any pay apps, I use a ten year old flip phone. Until they go all digital, cash is the only way to go.
Don't forget, stolen money has to be reported as income as well.
Yep, thanks government for the relief efforts. we knew money was going to have to come from somewhere many where's. LOL. And just when I'm thinking of selling my huge toy collection over the next year too but guessing eBay is not going to be the place to do it now
Facebook Marketplace has a lot of "cash only" sales. but that's a pretty narrow collection, maybe get a booth at a big toy convention?
You presumably have receipts since it’s a collection, you only pay taxes on the gained value.
@King Tutt Nice idea, hard to implement on large collections.
It is such bs. That is all I'm going to say about it. That 600 threshold is ridiculous.
That does seem crazy low.
Fellow CPA, subscribed for the follow up. I don’t resell or even use these platforms often, but curious about the implications. Great content.
Some of this is total bs. I just sell used items I bought new and no longer need. I selling my items for a loss.
As far as I'm concerned our country is goin in the dumps.
First of all shout out to Josh (Hairy Tornado) for dropping your channel in his video. I am so happy to find your content it is very helpful!
I am a part time seller who did $20K in sales in 2021 and looking to increase that to $20-30k. I have been doing my own records and taxes however with what appears to be further scrutiny coming in 2022 would it be easier to apply for an EIN or is it best just to continue to do the schedule C and combine my full and part time income?
Simply getting an EIN will have no effect on how you prepare and file your taxes.
Half this country just needs to stop paying taxes. Our founding fathers stopped paying for far less.
Time for a tea party.
Collecting more taxes from the little people= politicians getting higher wages, higher pensions, and better healthcare for life.
Yep welcome to your utopia, authoritarian Socialism
We are their slaves. What an American dream
little white hats*
At this point we should let the IRS govern the country, this is so insane they need to put a stop to the IRS
This new tax code really negatively affects those people like myself who might sell way more than $600 per year in used personal use items, which are sold at a loss. Right now I don't know of any form to account for this as losses for personal use items do not offset gains. I suppose the IRS will make a new for this purpose? This is sad because now we'll have to itemize to the IRS every single item we owned, how much we paid for it, and how much we sold it for. Very invasive -- "oh I see he likes guns.. oh he sold an AR-15 at a $100 loss." And you have to keep the receipts for all items you buy to prove cost basis.
I've been doing uber for 5 years NEVER filed 😰
Same here but with uber they will report your earnings to the IRS or send them a copy of your 1099-misc and they already know how much you made. I think with lyft they don't send a copy of your 1099-misc to the IRS you got to report that yourself. That what they told me
Thanks Brandon! Better than the mean tweets though!
So if the I.R.S. wants to tax ebey do this. Buy something you are going to use say example 500 dollars. after a couple of years resell that item on ebay. Now keep your original receipt.. Since this is now a business you paid 500 and only got 150. So 350 dollars is a loss on your taxes as a business. A sloppy one.. That is the system they just legally created.. AWESOME!!! YEAH!!!!
An item bought for personal use is not a business expense...furthermore, you cannot claim a loss on sale of personal items
Thank Mr. Hairy Tornado for introducing us to you! Here we come 2022!
I got a big ol bag the IRS can eat. And if they dont finish it, they wont like the Pb207 dessert any better.
Nice. Love it. As a small business owner I pay so much in taxes already and it just keeps rising and rising.... but gotta figure a way to make it happen
Sounds like you’re making a lot of money then. Congrats.
So you want to say you don't use any of crazy amount of deductions that make your effective tax rate fall in range of 12-19%? you're doing your taxes wrong and whining about it on youtube?
@@yuriib5483 no not at all. I deduct a ton off. I'm not wining. I'm just saying as a small business owner with 1 other employee it's insane how much I pay
@@zacsakacsi your employee pays more in % via payroll, ss and any other taxes. Chill.
@@yuriib5483 you literally have zero clue
Ridiculous. If you sell items at a loss then you should be able to take that into net loss on tax returns like used laptops or electronics
if you sell items at a loss then your price is wrong or the platform you use to sell is too greedy.
@@yuriib5483 for new items yes thats true but not used items
@@Pennychaser1 not true. When I see no profit or can't sell at profitable price item after fees, shipping and taxes I just e-waste it.
Taxes should ONLY be collected on profits only, not gross revenue. The government/IRS knows that 95%+ of casual sellers selling items that they acquired 10,15, 20+ years ago will not have kept receipts to prove original cost. Therefore, they will be wrongfully taking advantage of these people by taxing on gross revenues, not profits. This should be illegal.
Good info for all. I am a seller, so is my daughter, so we're subscribing.
Welcome!
It is very FAIR. If you had wages or interest income then you would get a W2 or 1099 and report it. Why should resellers get away without paying taxes like everyone else?
THANK YOU! It's not just people selling a few things they make themselves anymore, even ETSY is full of "I bought a lot of this from AliBaba and am reselling it". One of my fellow ETSY sellers told me if it is sold on ETSY, they already take so much money out that you don't have to pay taxes. (she also was confused that ETSY takes out STATE taxes, and I had to explain that's not Federal taxes). It's money, if you had a relative give you a large check, you'd have to pay taxes on that also.
i can send you some knee pads - Zaddy is proud
The vast majority of us pay a shitload of tax on our jobs already and our gas and our food and our sales tax and everything else keep licking that boot though I'm sure it taste good. Disregard the fact that healthcare food housing costs are exploding but God forbid anyone try to make a few extra dollars to survive I'm sure daddy government needs it so they can use it to change the weather.
Nothing better than being extorted over and over by the government. Thank Brandon!
Quickly? They are. Noe your going to get taxed for selling your old video games, your collectibles etc. IRS wants a piece of that now. Amazing!
20k to 600? How bout go after the millionaires and billionaires and all their loopholes
This was quite a valuable video, thanks for explaining everything so clearly. I have an expense question that I haven't seen answered anywhere and it's been keeping me from reselling a lot of things I bought at yard sales and flea markets for 20 years but I don't have any records about the cost to me of those items. What in this case should a reseller claim as cost of goods sold?
I'm planning a video on this soon! Bottom line is you'll need to estimate the original cost. Or if the current market value is lower than the estimated original cost you can use that, however the market value is so subjective...
@@notyourdadscpa Thank you so very much!
@@notyourdadscpa So I guess this means for taxes, estimating the cost of each item when it's sold, in other words the accrual method. To answer the tax form questions about inventory value at the beginning and end of the year, must I go through everything I collected over 20 years and establish/record an estimated value for each item to start out? Or can I start with zero $ in inventory at the beginning of reselling year 1 and move some items from my personal collection into inventory each year as I list them to resell, and establish COGS and ending inventory for each year that way??
Start out with beginning inventory of zero and add the estimated original cost of the personal items as purchases
@@notyourdadscpa That's the best possible process I could imagine. That would result in a zero inventory value at the beginning and end of every year, neat and tidy! Thank you for your time and expert opinion. Am looking forward to watching your future videos (already watched all your previous titles) and to continuing to learn from you.
And how is the IRS going to know if a payment send / payment received is taxable? I borrow $500 from mom and pay her back in 4 hours. That's $1K in tax both of us pay? $200 each taxable income. Your guilty until proven innocent? I use Venmo and Zelle all the time. Every single transaction will be considered income until proven wrong to IRS. So everyone needs to walk around with a journal writing down notes 24-7?
....QUESTION..... the 1099K is sent to IRS next year. $4K on Venmo records. Mom sends me $400 a month for college expenses. Both of us screwed. Do i claim that or not claim if not income. If i claim it i have to be taxed. I don't claim it bam audit. Loose loose situation. Can't win...
No. This is only for business transactions. This is not anything new and is always been around specially if you are familiar with PayPal. Difference is friends and family vs goods and services.
@@mikeytek ---Duh. Everyone knows that good and services vs, family and friends. But the IRS doesn't now the difference. Every transaction is and will be business until proven otherwise. your already guilty.
I just got notified by Facebook market place that i had reached $600 and needed to fill something out for tax purposes I was like thats a first
Yep. It's bad now.
This is going to actually hurt the overall economy. Many small time resellers are just going to exit the game and there goes all that sales tax revenue, etc. This is a joke. $600 and 1 transaction. This is nuts.
2022 just beat out 2021 for the worst year in only a week. I SHUDDER to think of what the rest of this year will turn out to be.
I am so happy about this. Before I started reselling I consulted my accountant and have always been paying taxes and taking deductions. I always felt like I was at a disadvantage to people who didn't pay taxes because they could afford to sell items for a lower cost. I think this will level the playing field.
you are happy about more govt intrusion into your life? What is wrong with you, this will not level the playing field, it will eventually kill your business.
Wow what a clown take. This derpy opinion will not age well, just watch.
What a dummy, you did not need to consult your accountant. Just take your money and relax. Sounds like a goodie two shoes that made small money and got jealous everyone else made it large. No one sold their items for lower cost to save money on tax. I can almost guarantee that Kristie was NOT a successful seller at all
The reduction is insane. How do they go from a $20K threshold down to only $600? I’ve had an eBay store for 20 years, just selling here and there, but I could hit the new threshold in just a couple months. $10K would make more sense.
If you have had an eBay store for 20 years then you know you should have been reporting your sales income for the last 20 years and claiming expenses and deductions if its not taxable income. What your saying is you have been using tax evasion for 20 years to make sure you didn't pay tax on any sales and now your mad they are closing the loophole. The best explanation i saw of this in the comments was "its like your upset the neighbors changed their wifi password after you were mooching off them for years" same concept. Time to do the bookwork. I have been on eBay since the early 2000's also, but i have been doing my taxes the entire time.
Something needs to change and fast! 🙏🇺🇸
Thankyou! We starting auctioning on whatnot this year. Were at a gross sales of about 25k. Were very confused and stressed about taxes this year. We didnt think we had to claim, but now were thinking otherwise
If you have self employed net income >$400 your required to file a tax return...1099 forms or not
I have been cleaning out the house and selling on Ebay items I have purchased at full price over the years. I am not a reseller but will get a 1099K because the items sold for >$600. How is that handled?
Yes, you will likely get a 1099k, stay tuned for my next video 👍🏻
@@notyourdadscpa they have to have your ssn
Yes, plz do a video on this. Selling your own items less than what originally paid but wouldn't have receipts. If over $600 total sales how do we handle. Thanks!!
Did Ebay ask for your social security number,
Did paypal ask for your social security number?
If not hoe will they know what info to send to the IRS?
@@claytonroberts344 PayPal was locking accounts if people did not provide ssn and identity information.
This means that I will no longer be using Ebay, Etsy, or Reverb to sell old used things. Seriously, I'm not going to give Uncle Sam a single penny from selling a guitar I've had for 20 years. After all, I can not write off 20 year's worth of storage and maintenance for that guitar. I'll just sell EVERYTHING privately and for cash going forward because I do not want the hassle. Bye bye Ebay and Etsy.
Indeed I'm from Massachusetts and back in 2017 on the announced to me they changed it to $600 threshold and I was hit with 1099k from selling books on Amazon..
I've been reporting my eBay income since I started in 2001. I get my deductions when I have my taxes done. I drive a lot so my milage claim is important. I also do scrap metal, born from parting out church and home organs, a big part of my eBay items so, I report that income as well. I get a print out of my scrap metal monies I get and includes each trip made.
I no longer do eBay ( since being scammed by PayPal in Sept of 2019 ), after being scammed by PayPal on keeping fees even after a full refund, due to scammers from the Pacific rim trying to use PayPal policies against sellers by sending name and address info in foreign script.
So now, it's just scrap metal.
But, the timing of this realization that will hit in 2023 , and those who have purped this ...couldn't be better when election time comes.
If you think that the "other" party is going to treat you much better, I think you will be sadly mistaken. In the US, you are not a citizen, you are a worker, regardless who is in power. And in the EU it isn't much better. We aren't corporations, so we don't get to dictate the government.
@@mathisnotforthefaintofheart: You seriously forget what party came up with this nonsense. Here's a hint, the guy who signed this into law increased inflation and has dementia.
@@Charles_Anthony None of the two parties are going to care about you. Both of these parties cater to corporations.
@@mathisnotforthefaintofheart You don't get it...Biden made everything 100x worse
@@euphoricmonk It doesn't matter who is in office. Biden is nothing but a puppet. He isn't running the show. This is what we call "democracy"
Hey Mark, what if you transfer money between your different bank accounts via Zelle or similar platforms, and not selling or getting this money from sales. Simply transferring money between my own accounts.
Will I need to pay taxes and report these transfers of money between my own accounts?
Transfers are not income
Great information thank you for untangling this mess 1099-k wow
Flee market will be busy this spring.
Y'all who voted for Joe can thank him for this one!
Great video Mark! I would love to see more information for those of us who have not received 1099s in the past and just filed schedule c's. In 2023 when we get the 1099 how will we make our deductions? For example my husband and I both have full-time jobs and take a standard deduction so how would we then deduct for just reselling expenses. If that makes sense...
And I know that we will do the schedule C as normal for 2021. I am just wondering in advance for when we file our 2022 taxes.
Business deductions are different from your standard or itemized deductions. You write off the expenses on your Sch C itself. The net profit or loss then is included in your adjusted gross income, and then your standard deduction reduces agi to get taxable income.
This question doesn't make sense. If you've been filing a schedule c then a 1099 is jist adding more income to your self employment. If you didn't have anything to write off it'd irrelevant to the 1099
Nothing is changing here. You file the schedule c as always. You don’t even list 1099ks on your return, your return is simply checked against the 1099ks the irs receives.
@@ItsDan123 You have to report the 1099’s exactly as received. What do you mean it’s only verified by the IRS? If she doesn’t report the 1099s…then she will be double reporting income.
I have nothing to hide, but I wish the IRS would expend A LOT MORE resources on auditing millionaires and billionaires not so much of their limited resources looking for tax cheats among " regular folks ".
This is awful! So what if I purchase something like a bicycle at a store use it for a few years and sell it for $650 on eBay. So I’m going to be taxed for something i’ve already been taxed on?
Tripled taxed. Taxed on the income u made to pay for it, taxed when u bought it, and now taxed when u sell it. All to fund absurdly rich politicians who stay in office their whole lives and terrorists groups around the world. Gotta love this country!
This will teach those billionaires! 🙄
What is going to happen if you use these platforms for money transfers among friends and family members or to avoid overseas money transaction costs?
Nothing.
Cash is king and also why the government wants cash gone.
Thanks for sharing this update!
What about selling personal items around the house? My understanding is those are not considered taxable income. How do you prove it was personal and not something you bought for resale?? Thank you!
The beast wants a cut everytime money moves.
You never make money selling personal items around the house. It's like having a garage sale. Does anyone sell things at a garage sale for more than they originally paid for it? No. But keep in mind you can"t take a loss on the sale of a personal item either. So basically nothing gets reported in the situation you've described. I'm a 40 year CPA by the way.
@@earlgarcia2736 So how is it reported given that it triggers a 1099K? I assume you don't ignore 1099K's no matter what triggers them. So what IRS form is used to "report the old various personal property crap sold on Ebay like a virtual garage sale". Does IRS expect me the know the cost basis of Grandpa's 100 year old pocket watch, etc?
@@cottydry Exactly what I am wondering. I do not have receipts for items around my house I'm wanting to sell, such as.....my 15 year old expresso machine, a 20 year old tent, various camera bags, and down jackets. I paid retail for all of these, and for sure, I will be reselling these for less than what I paid for them. Can I estimate the cost?
@@earlgarcia2736 Hi Earl. I have about $1700 in sales since signing with Ebay's forced managed payments system. Being in a state that requires a 1099k form for 2021 at a lower threshold when I file what is the best method? I have no other income for the year 2021 sadly. I here and there sold personal and used items using the free Ebay listings (not a store). Is that considered self employment or do I attach the 1099 form and on schedule C put estimated amount of items and loss or capital gain? Thank you
Is this just for businesses or personal people too. Im unemployed and have been selling everything i own to make ends meet. And now i have to be taxed on selling all my stuff?
You might want to find other avenues to sell now. This going to text the crap out of things... The things we already paid taxes on, spent money on. And have to go through hassle to prove what the actual profit is on the tax forms I'm guessing.
If you already paid say 100 dollars for something and sold it for the purchase price or less than,its not profit.no need to report it..if you buy used cars and flip them for more,than you report it..if you do a side jobs and make $600+ you report it
yup they tax you on gains. if you have no proof just send the irs an estimate of value and hope they dont audit ur butt
They will be after your communion money next
Very helpful! Thank you!! I don’t resell but this is still very useful :)
In a way I'm glad their going after some of these hardcore sellers, Every time I would go into goodwill to shop or take a look around, these resellers would jump the bins and knock me to the floor to try and get the collectible goods that they can resell on eBay
Karen😏
Glad to see this whole Tax the Rich thing is going well.
Keep voting Dem.......
Will they also look into people who haven't paid those taxes in the previous years?
Thanks for your help Mark!