many sale things here and there just to pay the electric bill or medical bills on a special needs child , or the fact that food prices are so high they do it to put food on the table and get by and usually selling at a loss , some can't live off disability well should i say all my grandma is only getting a thousand a month who can live off that and only gets 20 a month in food stamps the system is a mess so many try to figure out a way to make ends meet , its not always making huge sales yearly for all , i hope this part gets better some how
The thing that aggravates me is: I’m starting to sell off my personal items that I’ve collected for 40 plus years. I am not a business, just trying to get rid of stuff so the grandkids don’t have to deal with it.
I am in the same position. I make no profit at all therefore have nothing to report. No different than if I had a garage sale in person. It's very clear from the IRS's latest press release that they need more time. They plan to adjust their forms to make it simpler for those of us that aren't doing anything wrong and are not a business. They specifically stated they want to avoid even sending 1099K's to people that have no tax liability anyway. It's not only oppressive to honest people but will be an unnecessary burden to the IRS too.
Me too and we paid or taxes when we bought the items originally but Who kept all receipts for all clothing, knickers knacks, bits and bobs??? I sure as heck didn’t unless it was either very expensive or electronic! 😢
Yah, and what about when you sell your stuff with another person. Still Household items I've paid taxes on already. We get taxed 3-4 times on 1 item wth😊
Me too. I just go around to yard sales every weekend and buy stuff that is valuable for pennies on the dollar. I then add that stuff to my household temporarily until it sells on eBay. It’s my personal collection of valuable stuff so I shouldn’t be taxed
Why is the government charging taxes on items that someone already paid taxes on? I’m not a flipper, but it seems strange the government would double taxation without representation……
It has literally always been this way. Tax is charged every time an items sells until it ceases to exist. That's America. Start adding up all of the actual taxes you pay. Payroll down to gas taxes, milk subsidies, property tax. It goes on and on. And they spend it all on war machines to kill other people. America!
Illinois had the $600 limit a year or 2 before the Feds did the $600 limit. They amount I sell with my deductions typically ends up with me not owing anything or getting anything back, when I use HR Block online. So I end up having to spend, I think close to $200 with Fed & State for filling, to owe nothing & get nothing back. Seems like in my case the only one's benefitting off this is the Tax Preparation company!
I use a website that has free filing for federal and they don't charge much for state. Granted, you have to do it all yourself but it's set up fairly well and walks you through each step with instructions for everything. If you're not a huge reseller you could probably do it yourself and use your past documents as a sort of guide for what you'll need to do.
@@fatgrandmafinds there lies the problem with resellers these days! as technsports stated on the video he did with Mel he stated 99.9% of resellers are lazy i have been reselling since 98' full time i 1000% agree with tech on this! doing self employment taxes (Gross minus your legal deductions) is very simple and Most are trying to make a mountain out of a mole hill to evade paying taxes there using the excuse of being a BURDEN when in reality (most are not living in reality) its really not hard at all very simple so not a burden!
I agree, I used to pay H&R Block and Turbo Tax every year as well and finally used a free site last year. It was fairly easy and I wish I had used them earlier!
I'm about to go into babysitting. SO tired of the IRS and eBay's crap. I fear that we will be a cashless nation sooner than later so they can track and tax EVERYTHING we do.
I understand the IRS and I have turned in my earning every yr for the 24 years I've been on Ebay, regardless of what the sales were BUT what I find hard to swallow is that sometimes I sell some of my own personal items that no longer fit, etc and end up paying taxes on these items as well as EBay has them in your total too. Oh well! It is what it is! Thanks Kevin for always keeping us informed and interested.
Since I'm older I knew from the get that Uncle Sam wanted his cut. I've been reselling on eBay for 6 years and the key to being prepared for tax season was to keep all of your receipts. I even made my own at garage sales. Great vid!
@wickedwillow605 No offense but to IRS that isn't receipts that's a log. Completely different I guess you have never been audited. Trust me it isn't fun trying to defend a log if they speculate. Receipts no issues.
@@JohnnyLightningV10Handwritten records at the time of purchase is sufficient for the IRS. Where you get into trouble is not keeping records and then at tax time trying to recreate those records.
@juliapope7663 They require a log their is no receipts they will accept for garage sales you generated personally. I keep a log of my transactions of date and transactions. If was a place of business or business of course record.
Kevin, the first thing I do in the morning is to see if you have a video out and most times you do. I look very forward to viewing your vlogs because you are still a teacher. I have learned so much from you and I thank you from the bottom of my big heart! You are not selfish what-so-ever with your wealth of knowledge in the reseller world. Happiest of holidays and God bless you and all your family.
@@commonwealthflipperKevin Kevin Missy guitar is absolutely Truest to the Core-You still are a teacher just in a different subject and I too appreciate it from the bottom of my heart. Hugs to your wife and children I’ve been watching all your videos ever since I found you like 3 yrs b4 you quite your job on my Bday that year!😂 YOUR FAMILY ROCKS
As you said. The problem is when you sell a few items that have been in your posession for years or even decades. So its pretty difficult or impossible to show a cost basis on that old junk. I agree w. you 100%. There has to be a number between $600 and $20k that makes sense.
I agree that a $600 limit is stupid. They could go with $15,000 to $20,000 in sales. That might actually pay for the IRS agents they have to hire to actually make sure people are paying. At the $5,000 limit, there will be a lot of people audited because the IRS will ask for past year's sales. I have heard of this happening. Think of all the penalties and back taxes that will need to be paid. Even when I started in 2001, I made sure I claimed and it was not a lot of money. Truthfully, it still isn't.
Being able to audit people was the whole idea behind the ridiculous $600 limit, not revenue generation. (And, of course, the government can use that ability to widely audit as justification to harass political dissidents as the IRS already done to more to wealthy individuals.)
@@johnathin0061892 - No, it wasnt. They don't have the manpower. They are vastly understaffed. Like half of what they need which is why they had the bill to hire people over 10 years. They have significantly less people than they did 10 years ago and they have tons of people reaching retirement age all the time. They don't have the resources to audit tons of people. I had a tax issue and it took 2 years to fix it because every communication was like a 2 month process.
100% fact! i have been rselling full time since 98' on multiple platforms once the law gets to $600 and 1 transaction remember its law the irs cant change it not enough support in the house or senate when they know how much REVENUE this will make for FICA taxes (SOCIAL security and Mediacare) they figured out how to stop that well from drying make sure the Resellers and GIG workers are paying the taxes they owe! unfortunately Diane you and i are in the MINIORTY the majority are tax cheats and tax evaders but they will find out the hard way like you said when the IRS finally gets a 1099k on them and the irs requests from the platform or company (if your a gig worker) for your past years GORSS earners and if you were under the impression (have no idea why you would) that if you didn't get a 1099k means you didn't owe or have to pay taxes FAR FROM IT! but this is stuff you should research prior to selling online or doing gig work! frankly if the majority of sellers who are tax cheats and tax evaders do get back owed tax bills i have no sympathy or remorse for them they got what they deserved if i can do my self employment tax everyone else can too if you don't want to and want to have an under the table job NEWS FLASH selling online or doing gig work IS NOT LONGER an option get use to that! want to work under the table hide you earn from uncle Sam have a yard sale or sell at a flea market (Btw by law your suppose to report that income as well!)
The citizens of this country are so heavily taxed, its ridiculous!! I feel most people are honest when they file their taxes. If the government would not "live beyond their means", they wouldn't have to continually invent more avenues, especially cut way back on monetary donations to all the countries that we send to. I could go on for days....stay united, vote and hold our congressmen and senators accountable for their promises they make while running for office! Please leave us little guys alone!!!
Among the 86 Western, Capital countries, we are 56th in tax revenue per taxpayer. We are also only 51st in tax dollars spent per taxpayer. We don't collect enough although that is mainly from the wealthy and we should spend more (although less on many things such as military). We could eliminate so many problems and reduce our personal expenses drastically if they would fix the entire system. Taxes should be simplified and streamlined instead of having so many different types and having to "do" our taxes which other countries don't do. They have an amount and they pay it. There is a reason our infrastructure and a lot of things are falling behind the rest of the world. Most of the money sent to other countries are done so because it is vital to our own country. Our legislators aren't exactly doing it out of kindness, they barely want to provide for their own constituents. They are doing it to maintain alliances, preserver trade, preserve supply chain, get access to goods or resources, etc. For example, Ukraine is vital to the entire world's food supply. It would kill millions worldwide if their food industry were damaged with famine and food prices would skyrocket, especially what based products.
@@rjrobbins2 I get that about Ukraine and also like your ideas about simplifying our taxes. However, savvy news watchers like me have picked up on the waste, fraud and abuse issues also happening in Ukraine with our tax $. It's become one big "slush fund". Not getting into politics beyond this: Not only do we plan to pay for rebuilding their infrastructure - when our own is crumbling - we are currently paying for Ukrainian citizen's pensions. ALL citizens there get one, whereas in the US it has become rare to find a job where you can even receive a pension. WTH? We currently have a retirement crisis to deal with here! Also, it came out last month that the IRS has been investigating Microsoft for years. The IRS found they owe $29 BILLION in back taxes (not including interest & penalties). Microsoft has lawyers that are fighting it, but only a fool would think the IRS is that far off in their figures. They are sticklers for detail. Why aren't taxpayers concerned about blatant corporate fraud like that? Especially with the gov't tax breaks and incentives they already benefit from. Instead, they will argue over what is clearly minutia; the "low hanging fruit" like online transactions (most of which have no tax liability anyway). As they say, we get the gov't we deserve. Too many are small-minded thinkers that are happy watching football, etc. while their tax dollars are being abused on the BIG wasteful issues. JMHO.
Thank you so much for letting us know! This is a great relief as a small seller. I'm really enjoying your great finds, too! And, of course, there's those beautiful animals that I adore 😍
My primary job is an HR specialist and I received a fi-serve from the IRS and realized that they were probably going to postpone it another year. Thank you for the confirmation.
And yes, I already claim my eBay income on my taxes. If you aren’t doing it already, get started so it’s not so hard once they start sending out those 1099s.
@@Secondwindoregon and since there phasing it in over the next few years it will eventually get to $600 and 1 transaction sellers new and old alike who never got there 1099k and for whatever idiotic reason thought they didn't have to report there income (gross) once you do get that 1099k the irs has the ability (and most likely will) request Previous Years GROSS from any platform you sell on and say you made 15k but never report that gross or 10k but never report that gross or 100k but sold less then 200 transactions and never received a 1099k and never reported that 100k Gross YEP irs is going to send you a BACKED owed tax bill you will be crying then! guess i wont have any remorse or sympathy for ANYONE that is in that boat ill say you got what you deserved for being a tax cheat and tax evader so as secondwindoregon stated BETTER DO your taxes NOW and also go back over your previous years and do them as well DOING taxes and PAYING taxes are 2 totally separate things doing takes is reporting your GROSS what you earned and then taking any legal deductions to get that GROSS down to as close to 0 as possible that is your net and that is considered your earn income (you pay self employment tax 15.3% (which is Fica) and you also use that net and report that on your income tax return as EIC its all very simple)
@@Secondwindoregon. I’m confused is it $20,000 200 transactions or $5,000. Can you help me understand. I saw a video Kevin did maybe a Mth ago that I thought he said they weren’t starting it until 2025? Please help if you don’t mind I have medical issues and I’m definetly confused after watching this. Thank you from the bottom of my heart. Have a great weekend and stay safe!
Thanks for your information on the taxes and IRS. It helps those of us that are doing this part time for sure! I hope you and your family had a wonderful Thanksgiving!
The IRS is so understaffed that they would not be able to handle all the additional work from it. It took me 2 years to fix a tax issue because it takes them weeks to respond, if they do at all.
Same. They audited me last year for 2017, my first year reselling over $20k. They never sent me a 1099 and I actually thought I was under $20k and that if I didn’t get a 1099 I didn’t need to file at the time. After all my expenses etc I had to pay them $300, my tax pro $300 and it took them 4 months to figure it out. I hope the tax agent didn’t spend it all in one place. 😂
Kevin, thank you so much for the great information you provided regarding Taxes and IRS. Your wealth of knowledge and sharing it with the viewing audience is so much appreciated.
Great video, Kevin, it will be interesting to see how the IRS finally rolls this out in the long run it will cost more than they get out of it but then again, that’s the IRS go figure. on a brighter note, I hope Reagan has some leftover craft projects that she sells this year. I absolutely loved the ornaments she did last time and also I ordered my ornament. Thank you.
So, All of my stuff that I bought over the years if I’m in my 60s? Were bought with after I paid my goddamn W-2 wage related tax dollars. If I was dumb enough to convert that after-tax net income into a brick for $6 dollars each and then I come back and sell it years later for $4 dollars each why is that considered a profit or taxable income or even income at all? I’m merely converting my after-tax net income from dollars into Bricks and then back into dollars again. I’m not profiting from anything I’m simply converting my previously net income which I had already paid taxes on into something and then reconverting that something back into dollars at a loss for a certainty. Also if there are thresholds that the IRS code stipulates that state that you (if below that threshold) don’t have to file an income tax return?, Or certain threshold for “gifting” a certain amount to family members? Then there should be a similar threshold for people selling their [THEIR] old accumulated crap. “Income” & “Profit” is NOT something one gets from selling an goddamn used couch, or clothing that doesn’t fit any longer. This is goddamn taxation on TOP of taxation.
Most of my sales have been personal property for a while. Been in the family SO long, of course there are no longer any receipts on original purchase. Guess me and accountant and lots of research will have to figure it out. I know how to figure out expenses, etc. Thanks for the info!
Relieved about the IRS Info! Thank you! I am a small seller online but have been selling for 20 years. I have never gotten a 1099 from eBay. I was so nervous about the $600. The fees are so high on eBay. By the time you subtract the fees, COG, time, travel, the $600 goes way down and is not worth filing IMO. Ebay is getting harder to sell on these days. Finding inventory also, because everyone knows everything now. Goodwill pulls items etc. Discouraging. Glad I don't need to file now.
"The fees are so high on eBay. By the time you subtract the fees, COG, time, travel, the $600 goes way down and is not worth filing IMO" IMO if this is true then it should not be worth it to sell online either SO WHY DO THEY even bother! at that rate its a waste of there time might as well just sell it a yard sale or flea market or donate it and use it as a tax write off! the argument about im not making any profit is BS i do not believe a word of it its just excuse to evade and cheat taxes! btw this is directly from the IRS website news release on the $600 and 1 transaction "It's important to note that the higher threshold does not affect the actual tax law to report income on your tax return. All income, no matter the amount, is taxable unless it's excluded by law whether a Form 1099-K is sent or not." which means NO matter if you get a 1099k or not YOU STILL HAVE TO REPORT your GROSS earnings to the IRS only thing a 1099k means is that the platform or company (if your a gig workers) has reported your GROSS earnings to the IRS! if you have the mindset you do guess what when the threshold finally gets to $600 and 1 (yep its law no getting around that its being PHASED in its not going anywhere) but when it gets to $600 and 1 transaction the IRS will have your info and once that happens they can request PREVIOUS years GROSS earnings from the eBay (and any other platform you sell on) and guess what if you have not been reporting GROSS earnings they will send you a HUGE back owed tax bill (enjoy paying that) i suggest getting all your previous gross earnings and DO YOUR taxes when i say do your taxes you get each years gross earnings and then USE your legal deductions to get that GROSS down to as close to 0 as possible or once you do get your first 1099k you will owe back owed taxes for all the years you didn't get a 1099k BUT sill were required to report
At what point and is it happening for 2024, or are they going to implement this starting in 2025, for I’m so confused…. Thank you for your from the bottom of my heart. Sincerely
Years ago, I played in a band and I acted as the manager of the business for the band. Many venues wrote a check to me and then cashed it so it looked like I received all the money for the gig. The reality is, we were all considered independent contractors. What would happen to me is, at the end of the year, some places would send me 10's of thousands of dollars in 1099's. I then had to recall who played what gigs and send out 1099's to them. Many musicians that filled in for us didn't report the income but I had to send a 1099 if I paid them more than $600 or I would be on the hook for the taxes. It was a huge pain. After that, I just played in bands where somebody else handled the business part.
Damn paperwork is a pain in the $*& when you're just trying to enjoy what you do for a living. I can see why I paid HR Block back in the day for my taxes.
Pain in the neck yes. It's the reason you should keep a written record of all expenses; cost of goods, gas, auto repairs, sq footage of storage, supplies, mileage, postage, travel (hotel as well as food), phone, utilities and any other expense that has to do with your business. Make a list of how you spend money for your business. Then make a custom sheet for each day or week, whatever is best for you. Banks such as Wells Fargo have business accounts that will separate purchases and give you a recap each month. Between the cash recap (your hand written sheets) and bank statements you should have all your expenses. I realize that sounds like a lot of record keeping, but you should want to know where your money is going. Even if you are preparing your own taxes, you will need those numbers to file a sch C. And if someone else is preparing your taxes, by having the P&L you should save money with them. Hope this helps someone.
@@sbates AMEN!! as Technsports stated on the Video he did with MEL 99.9% of resellers are LAZY as a full time reseller for the last 25 years on eBay and amazon and every other platform that has come along since agree with Tech 1000% those that whine and cry about its a burden, to much paper work are ALL just lazy and tax cheats and tax evaders! probably not even telling the truth they are selling personal items JUST trying to use that as an excuse TO EVADE paying there taxes what happen is the IRS wisend up and realized since covid how much all these Platforms were making in the billions (majority of that revenue is from Sellers Sales) but yet had very LITTLE in return from there sellers VIA Self Employment tax so the tax cheats and tax evaders (even if they only made $600) could not handle an adult responsibility to Self report there Income (gross) and then do a small bit of work to get there GROSS down to as close 0 as possible again if you think doing this is burden or work then your JUST LAZY and should NOT be allowed to sell ONLINE at all you want to work under the table GO set up at a flea market or have a yard sale! I hae no remorse or sympathy for people like this!
@@sbatesthe problem is many of us are not a business we just have 20 years of knick knack collectables in our attics and garages and selling them off to pay off a bill or buy a new toy or as spending money for a vacation is all our goals are in addition to clearing out our hoard. Coming after us is wrong and they know it....hence the constant delays....they can't figure it out nor have the manpower to look at the exceptions and make reasonable determinations!!!
I agree with you to a degree, but the IRS only wants proper paperwork. If you are selling knick knack's bought back years ago, you had to do something to keep then safe in order to sell. Most likely you didn't make a profit when you factor in cost of the item, plus security and storage. Again you are only paying taxes on profits. If you receive more than $600 in 1099's make sure you report all your sells as well as your cost. Hope this helps a little.
Kevin - can you pleeeease do a video explaining your organization system? How you store items, where, and how you note & identify which drawer or bin an item is stored in. Please 🙏
He probably just fill in the Custom Fill.sku for the location of the items he has License plates. on the bins If you notice. He probably put the license plate number in for items location
$5K is much more reasonable than $600. I was hoping $10K might be the magic number but I guess we'll find out soon enough 😉 To your point about some folks needing to control income, I have to be mindful of that because I took my Social Security at 62 so there's a threshold for me on what I can earn without it affecting my SS income. Once I'm 65 I won't have to worry about that (1-1/2 years!) and then, watch out world! LOL
@fatgrandmafinds Lol. I did the same thing! Took early retirement at 62 (because I was exhausted, having not only spent all the years working fulltime, but I also spent 25+ years as a single parent raising my 4 kids. That's like having an additional fulltime job!) However, I continued working part time, for the extra income. I've now reached my full retirement age, AND got my ebay seller account going. So as you said, look out, world, lol, cos I can now earn as much as I want!
@@pamprier4710im confused is $5,000 I thought they weren’t going to start until 2025, thresholds of $20,000 or 200 transaction-I thought Kevin did a video on this one too. So after seeing this one I’m super confused can you help please understand. Thank you from the bottom of my heart.
Thank you for kind, personable, sharing of important information. I like your conversational style of communicating. You, your family, pets are nice to watch, and you're nice to have giveaways as well. Thanks for a having a very nice youtube channel. I always watch-informative and relaxing. 😊
Interesting. I've thought of selling some things on ebay but this will scare me away if the IRS ever goes down to the $600 level for sending a 1099. That's way too little, I agree. Many small sellers that just sell some used things they had at home, like a garage sale, are basically selling things that they originally paid full price for when they got them new. So aren't all these type of sellers taking a loss ( at least for tax purposes) when they sell, and shouldn't have to pay any taxes ?? Granted, most of these type of "garage sale" type of sellers wouldn't even have $5000 in gross sales for the year, but some might . And they certainly could have $600. Will that mean they will have to keep records of everything on what they paid for them ? Many would forget what they cost, since they might have bought them years ago without ever planning to sell them. Can't they just tell the IRS they bought them new and sold used for less so they owe nothing ? Just curious on that as to what you know as you seem very knowledgeable.
Now I read that according to the IRS, if your online auction sales are the Internet equivalent of an occasional garage or yard sale, you generally do not have to report income from those sales. That is what I thought it should be.
Great explanation of factors at work regarding $600 threshold….IMHO….less than 15k at these gig type jobs really just a side hustle that keeps the economy rolling. I believe the threshold should be tied to minimum wage ….below that no 1099 should be given. I would love to see an economic study done on this question of costs vs benefits to the government.
I just received a reply from one of my state senators up here in NH and she has informed me that the irs has once again delayed the roll out until 2024 and upped it to 5k. I sent over to you on Facebook messenger.
Kevin, you should do a video explaining the difference between sales tax and income tax. Seems to be a lot of folks who get confused over the two. I see a lot of ppl saying they have already paid taxes on items and shouldn't have to pay more. 🤷♂🤷♂
Great info as always. I urge all of you fellow viewers to write to your Senators / Congressmen / Congresswomen addressing the concern of "double-taxation" on used consumer goods. People should not have to be paying sales tax on an item which has already been subjected to government tax collection (e.g.: buying a "used" item at Goodwill, Salvation Army, etc). Oddly enough... if you paid tax on a used item which had already been previously taxed when originally purchased brand new, and you then sold that same single item on eBay, it has now been "triple-taxed" by the government. A single "used" item being repeatedly taxed over and over again?... this needs to end somehow.
I'm trying to find the writing in the Schedule C that states something about showing an earnest to build a business to be eligible for write offs. Not showing an earnest will qualify me as a 'hobby reseller'. Which I always was. I didn't keep track of mileage, receipts, ... But if they decide that I'm am not truly forming a small business, I can't write stuff off. Scary stuff.
this is from the IRS website "If your business has had a profit in three of the past five years, the IRS considers it a business, not a hobby." “Just because a business doesn’t meet the three-of-five-year profit (rule) doesn’t mean that a taxpayer can’t continue to deduct losses on business but the taxpayer must be able to prove … that there is a profit motive,” Freedman says.
I still haven't gotten my taxes back for last year. I had them in right at the end of tax season. They sent me a letter a month later and needed more information. I sent it to them and then in the beginning of July they sent me a letter saying give them 60 days and that they don't need any other additional information. So now it's been almost 5 months since I received that letter. I am so frustrated and just trying to be patient. Has anyone else had any issues like this? I would appreciate any help or comments. Thanks:):). Thank you for the video and the info on the taxes.
Right you are, but not every seller is a Sole Prop. Some are just folks getting rid of stuff, so Sch 1 Line 8 is better for them. Happy Holiday @@artreggiano933
This is something that drives me crazy im on disibility and make a little over 900 a month i want to get into reselling comics and collectables beacuse i have collected for along and have a decent inventory i have recipts for everything ive bought but scared to sell beacuse i havent done taxes in 20 years or made any side profit at all so if open an online shop im a buisness? Thats crazy cause i wont make that much but could loose my disibility and insurance for selling a collection i dont mind paying taxes on end profit so confusing
Just sell slowly so you can sort of control how much you have coming in. That's what I do. I took my social security at 62 and I have limits on what I can earn without it affecting me. If I'm making too much one month I can put my store on vacation mode or stop listing and it slows sales down.
There are two ways to do it. I do not use the itemized method is it takes way to long. I have a separate bank account and use money in money out. There will be a follow up video with my reseller genie next week.
How do you all pay taxes on items that were purchased as a lot? Like say a lot of baseball cards. If you sell them individually, would you come up with the average price per card and pay taxes that way or once you’ve turned a profit on the price you paid for the entire lot?
Think of your accounting books that have two columns. You sell an item, the sale price goes in the income column. The other column would contain all expenses, including all purchases sold and unsold, shipping, packaging materials, ink, office space, accounting products etc.. You don't need to divide the cost of each card out because the total purchase price of the cards was a one time expense.
There is already a bipartisan bill in the House that would raise it to either 5 or 10K. Sadly, because of the disfunction in the House they still haven't voted on it. So, the IRS stepped in to delay.
@@don951 $10K would be good for a couple of reasons...most people selling at least $10K worth of stuff are very likely resellers and it will force those folks to file if they haven't been. This might weed out some people who don't want to be bothered with all the tax stuff. Or if they don't want to get a 1099 it will cause them to slow down their selling which is good for those who've been filing and don't mind😉
Plus the Republicans put a stop to the billions of dollars that Joe promised to spend at the IRS with all those 87,000 new gun-toting agents. Maybe they are putting it on hold for another year because they can't enforce it without more money in their program.
@@don951Don I’m confused I saw a video from Kevin I thought maybe a month ago and also Rockstar Flipper. And watched a Video from “Facts Matter on Nov 24,2023 that said they were sticking with $20,000 or 200 transactions. And on facts matter by Roman from Epoch times after him saying they were going to start it when you hit more “It stated that IRS is waiting for next year which im assuming is 2025 that they will start with the $5,000! Can you help me here for I’m confused big time after watching this video from Kevin. Are they starting the $5,000 in 2024 or 2025. I don’t have much to get rid of that I could have a yard sale but I have 5 pcs of good quality music equipment that my son in law used for ESPN several years back when he worked there and no one will pay $500 at a yard sale for them. Can you please help me understand this better. I read through all the comments and yours seemed like you understand what is going on and you won’t give me a hard time about this. Pretty please help me out-From one reseller to another (whom is afraid to even bother with eBay or anything anymore) Thank you from the bottom of my heart! Thank you once again for being so kind. Just trying to make a lil to make ends meets in this screwy world that we are living in. Thank you Ron, from Kelly
It's interesting and often entertaining (not always in a good way) to try and figure out what the IRS will do next. The one thing I've learned in decades of dealing with that entity is this: don't trust what they say EVER! Don't take anything at face value until a final decision is officially published and the date of action is at hand. Always question and always get every single thing in writing. If you try to comply with news releases and statements before the final decision, you'll be spinning in circles. Sadly, just because they say it doesn't mean it's so.
My wife I have been enjoying your videos for several years now and have learned a tremendous amount from you. Thanks! Our ebay store is still doing well and are having a blast with it. Now since we're retired want to start a TH-cam channel and would you be so kind as to share with us what camera you use and what you use for editing, along with anything else that might help us to get started. Best regards, Tim & Leslie w/fletchflips
Yeah, nice news but this came to my GF on her new account. (As of Jan 1, 2022, the IRS now requires us to file and send a Form 1099-K to everyone who sells $600 or more. Since you’ve made $600 or more in sales this year, we’ll need your full 9-digit Social Security number (SSN) or Individual Tax Identification Number (ITIN) to send you your 1099-K.) So, either eBay didnt get the memo or they are sending out 1099 at the 600?
Buy a phone you pay taxes on it. Sell the phone the other person pays taxes on it. Now they want a third tax on the same transaction of the same phone claiming it as income for you if you sell it for more than you bought it for. It's just never enough for them.
They did this for the 3rd party platforms to report at the 600 level so they get the data to assist with the decision to change and get the info to see if those who resell are self reporting - just my opinion!
I Think most of the platforms are still going to send 1099’s anyway because they have already put all in place. One big thing I would like to stress to people that are selling full time keep your personal finances separate from business. This tax law where I have issues is people like my daughter that venmo money for things like splitting meals to friends, they have to keep up with that or they will owe taxes on that money. Also if your making purchases at estate sales or yard sales over 300. You need to either write a check or fill out invoice. You need the proof for the IRS.
no venmo , cash app and paypal all have 2 options "friends and family" and "goods and services" sorry PayPal has been around for 20 years the other 2 are just copycats of paypal no excuses not to use friends and family to split meals and goods and services to what....pay for goods and services very simple concept! now i know PayPal will limit or even suspend your use of Friends and family if you use it to much i have no issues with them doing that it should not be an everyday thing if you are sending money to and from friends and family use Zelle!
Hey Kevin This is my 1st year on eBay I’m scared about the taxes situation is there a checklist anywhere to print to have everything ready needed ? This is really stressing me out I can’t afford high taxes bill I just don’t have it 😢
I do my own taxes online, one of the free ones recommended by the IRS, been doing it for 11 years as a reseller on ebay. I don't make a ton of money, and after deductions, on paper, I make next to nothing, lol. Just keep your receipts, the program walks you through the self-employed section.
@@carmensusi837 Just write stuff down and keep track somewhere. It's rare for anyone to get a receipt at a yard/estate sale and while the IRS is annoying they're aren't so dumb they'd expect a receipt for that😉 At some point, they have to trust us.
@@carmensusi837 Keep a record/log of where and when you buy stuff and be sure to save it. Some professionals that do estate sales will give you a receipt if you ask, otherwise all you have are your records. If the IRS audits you and pushes the matter, you might have problems, just a risk we run when we buy stuff at yard sales (if possible, have enough extra money to cover yourself if they deny the deductions on money spent on sales with no receipts.)
I used to sell on ebay but since the government got extreme greedy I stopped, I was selling used things we had , things my kids outgrew or that we just didn't want anymore. I will be damned if I will pay taxes on crap we paid taxes on when we bought them originally. It is ridiculous.
I am not a reseller, I like to shop. I do not understand , the items sold at yard sales, thrift stores etc. Are primarily used. They have been taxed upon original purchase. Crafters,materials have been taxed. I do not think that the seller and reseller should have to pay tax on an item where fair taxes have been paid upon original purchase? Thoughts? The seller, it is your property ,used ,reusing is beautiful then throwing away. Double tripling taxes on say a used fry pan, shoes etc. Just not fair ,not right. It does not make sense. . My little opinion is on personal items we all use, that has been taxed when bought. I wish all the resellers the very best. I hope the new tax law are revisited. To the shoppers and home sellers continue on. HAPPY Holidays to all ❤
I have a friend that they tried taxing on 120k because he kept depositing and withdrawing the same $500ish on gambling sites. He didn't end up getting taxed but it was a huge pain to get all the documentation together.
Pay taxes on the gas you buy to get to the job that you pay income taxes at… then pay your mortgage that also has property taxes added to. Then you take what’s left of your paycheck and buy the things you need and pay sales tax. When you resell those things, you get charged more income tax on all that previously taxed stuff.
Remember for all your retirees that collect Social Security or disability. Next year you’ll be able to make @ $56,000 that is above your Social Security that you receive during the year. Without worrying about taxes.. I think this year you were only allowed to make $19,000 above your Social Security without worrying about taxes. This is only for Social Security or disabled people.
Where can i check on this im on disibility making 900 a month just isn't getting me by anyone ive collected and recently bought some things from sales i know i can make a few bucks on but scared to open an online store i dont wanna get in trouble with ssdi
FYI your gross includes returns. I learned this quickly last year and in previous businesses I was involved with returns got taken off our gross revenue at end of the year.
yep its an expenses and a legal deduction been doing this for 25 years Returns can add up quick if you get a lot thankfully i don't get a lot of returns
@bennystratton7734 Problem is a large return can be the difference for some to get a 1099 and not get a 1099. Had a friend sell a 3700 sound system that got returned and then sold it again for same price.
@@JohnnyLightningV10 then you use the the return as a the deduction so when it's tax time ebay will report gross of 7200 plus shipping then you can legally deduct the return of 3600 plus shipping and fees that you were not reimbursed for so it would bring your net down to 3600 give or take there is no excuse
@@JohnnyLightningV10 well its now the law so if they get a 1099 because of that they have to do the work if they don't want to do the work then they need to stop selling online period this proves Technsports point that 99.9% of resellers are lazy i 1000% agree with him on that i have no sympathy or remorse for lazy sellers that don't want to do little work like doing tax btw even if the person got a 1099k because they hit $5k or not next year if the person made $3600 they still are legally responsible to report that $3600 so your arguing a null point!
Love your cabin, I bought one last year..unfinished.. looking at yours makes me want mine finished..would you mind sharing the size of your cabin? Mine is 20’ without a porch..
I have been selling on eBay for 13 years and always reported my net to the IRS. I will continue to do so, as much as I don't like it, for as long as I resell. I do not like the idea that some sellers are not paying their fair share but I can't change that. I will continue to just do my thing. Give Caesar what belongs to Caesar and the first 10% to the King.
O I paid 60,000 in taxes due to real estate investing.i refused to send in my 1099 from last year .what the heck are they going to do to me.i made maybe 600.00 lady year on ebay
My biggest question is are they counting "friends and family" transactions or only "goods and services" transactions on apps like Cashapp, Venmo, and PayPal.
@@commonwealthflipper what's that suppose to mean? Under the American Rescue Plan, Virginia will receive $4.3 billion in direct state fiscal aid and $2.3 billion in local government aid from the federal government. your state paid way less into the system then MA in 2022, did it ever cross your mind that if we all thought the way you and others on here did that the government shouldn't collect taxes and we shouldn't pay taxes then your state would not be getting $4.3 billion in state aid and $2.3 billion in local Government i mean someone has to pay for the federal aid your state is getting it isn't falling out of thing air! maybe others in states that paid more into the system then your state might feel your stated does not deserve that much what about if the states that paid more into the system got to dictate how much states that paid less into the system received for aid from the Federal government!
If taxes are paid when an item is bought new isn't it double dipping by the government to tax it again. How is this ant different than selling at a yard seller?
I'm trying to down size my belongings, how do I show what was paid for the item that I've owned for years? or what you pay in cash for yard/garage sales or flea markets?
like some do keep your receipts for everything its a lot easier to do nowadays then it was decades ago now you can scan it in and have nice an neat in a digital folder on your pc or for yard sales and flea markets do what i have done for 25 years reselling full time get a sales receipt book at walmart or dollar tree then were ever you go that does not give receipts have them make a receipt for you using your sales receipts book tell them you resell online and need this for tax purposes sorry when people bring up excuse like yours i have no sympathy or remorse for them there is no excuses in my book
@@bennystratton7734way to be an a-hole for a simple question. When they bought the items this BS wasn’t a thing. No one keeps receipts for the life of something they own. Condescending prick.
The worst part is the governments pretty correct about this. There's alot of businesses and people hiding money. But in their incompetence, they've wouldve caught poor people in their net who absolutely should not be dealing with additional BS.
This doesn't really change anything. The $600 isn't s minimum that you start paying taxes at. You must report it anyway. The only thing this does is change who has to report the income to the IRS. With these new rules the platform is required to report anything more than $600. Currently you have to report it. You always have to report all income you make. Remember the more deductions you try to take or creative things to do to try and reduce your income increases your likelihood of getting audited.
amen! government opened there eyes after covid and realized the Majority of resellers and gig workers are tax cheats and tax evaders only way to make tax cheats and tax evaders comply with tax laws is lower the Minimum amount that the Platforms are required to report Gross sales if the Majority of resellers and gig works KNOW that there income is going to be report by the Platforms MANY many more will comply or at least this is what the IRS thinks i think others or was praying for that for 2 years now and that is i feel many many would just jump ship and stop reselling all together for one of 2 reason they don't think they should have to pay taxes like many have commented here and all over YT and FB or they will do there taxes and see that they are NETTING next to nothing if nothing at all (maybe even in the red or losing money) been reselling 25 years on multiple platforms have been reporting since day one always showed a profit for 3 reasons because the Self Employment tax is FICA (which is social security and Medicare) you get points toward collecting retirement (since this is basically the only job i have had in 25 years this is very important to me) also the more you report as income or NET the more you get when you are getting a retirement check! 2nd reason i show a profit is if i ever want to sell my business it will be worth something because when bankes go to lend buyers money to buy a business they DONT consider your Inventory as collateral or Assets the main thing they look at as to what your business is worth is your income tax and what you reported as Net so if its 0 or close to that then to the banks that is what your business is worth! i also report profit to keep from getting audited in 25 years i have never once been audited
@@commonwealthflipperwhat about my storage unit fee of $175 per month where I store my 5000 items listed on eBay? And my $65 per month eBay store fee? And monthly internet fee? Are those all deductible too?
@@kingstonagainstcorruption2268 yes. Everything you use to run your business is a deduction. That is why he has given a link for the reseller genie - to keep track of your expenses/ deductions
You confirmed the argument that higher taxes kills business. People are not wanting the hassle so they quit, slow down selling, or don't even try to start a business. Thus killing new business startups in whatever business the government taxes. It's been proven over and over again. Raise taxes and revenue goes down. Lower taxes and revenue goes up.
It's also ridiculous that sales tax is paid on used items, where sales tax was paid when the item was sold new!
Exactly! It's illegal.
many sale things here and there just to pay the electric bill or medical bills on a special needs child , or the fact that food prices are so high they do it to put food on the table and get by and usually selling at a loss , some can't live off disability well should i say all my grandma is only getting a thousand a month who can live off that and only gets 20 a month in food stamps the system is a mess so many try to figure out a way to make ends meet , its not always making huge sales yearly for all , i hope this part gets better some how
The thing that aggravates me is: I’m starting to sell off my personal items that I’ve collected for 40 plus years. I am not a business, just trying to get rid of stuff so the grandkids don’t have to deal with it.
I am in the same position. I make no profit at all therefore have nothing to report. No different than if I had a garage sale in person. It's very clear from the IRS's latest press release that they need more time. They plan to adjust their forms to make it simpler for those of us that aren't doing anything wrong and are not a business. They specifically stated they want to avoid even sending 1099K's to people that have no tax liability anyway. It's not only oppressive to honest people but will be an unnecessary burden to the IRS too.
Me too and we paid or taxes when we bought the items originally but Who kept all receipts for all clothing, knickers knacks, bits and bobs??? I sure as heck didn’t unless it was either very expensive or electronic! 😢
Yah, and what about when you sell your stuff with another person. Still Household items I've paid taxes on already. We get taxed 3-4 times on 1 item wth😊
Me too. I just go around to yard sales every weekend and buy stuff that is valuable for pennies on the dollar. I then add that stuff to my household temporarily until it sells on eBay. It’s my personal collection of valuable stuff so I shouldn’t be taxed
20:08
Why is the government charging taxes on items that someone already paid taxes on? I’m not a flipper, but it seems strange the government would double taxation without representation……
It has literally always been this way. Tax is charged every time an items sells until it ceases to exist. That's America. Start adding up all of the actual taxes you pay. Payroll down to gas taxes, milk subsidies, property tax. It goes on and on. And they spend it all on war machines to kill other people. America!
Illinois had the $600 limit a year or 2 before the Feds did the $600 limit. They amount I sell with my deductions typically ends up with me not owing anything or getting anything back, when I use HR Block online. So I end up having to spend, I think close to $200 with Fed & State for filling, to owe nothing & get nothing back. Seems like in my case the only one's benefitting off this is the Tax Preparation company!
Pretty much! Only the tax preparers and software companies will make any money off of this in the end. Stupid even for the Government.
I use a website that has free filing for federal and they don't charge much for state. Granted, you have to do it all yourself but it's set up fairly well and walks you through each step with instructions for everything. If you're not a huge reseller you could probably do it yourself and use your past documents as a sort of guide for what you'll need to do.
@@fatgrandmafinds there lies the problem with resellers these days! as technsports stated on the video he did with Mel he stated 99.9% of resellers are lazy i have been reselling since 98' full time i 1000% agree with tech on this! doing self employment taxes (Gross minus your legal deductions) is very simple and Most are trying to make a mountain out of a mole hill to evade paying taxes there using the excuse of being a BURDEN when in reality (most are not living in reality) its really not hard at all very simple so not a burden!
I agree, I used to pay H&R Block and Turbo Tax every year as well and finally used a free site last year. It was fairly easy and I wish I had used them earlier!
I'm about to go into babysitting. SO tired of the IRS and eBay's crap. I fear that we will be a cashless nation sooner than later so they can track and tax EVERYTHING we do.
Ebay really has not choice but to comply.
Daycare is taxed as well. It’s a tax deduction so parents need that.
I understand the IRS and I have turned in my earning every yr for the 24 years I've been on Ebay, regardless of what the sales were BUT what I find hard to swallow is that sometimes I sell some of my own personal items that no longer fit, etc and end up paying taxes on these items as well as EBay has them in your total too. Oh well! It is what it is! Thanks Kevin for always keeping us informed and interested.
Your tax professional can help you. Just keep track of your own personal items and they can be deducted, so no tax on them.
@@jaynehouston9677 as long as your not making a profit!
Since I'm older I knew from the get that Uncle Sam wanted his cut. I've been reselling on eBay for 6 years and the key to being prepared for tax season was to keep all of your receipts. I even made my own at garage sales. Great vid!
Hard to get receipts at garage sales 😂 no offense but it's an honesty system. I keep records of my transactions but no garage sale gives receipts.
@@JohnnyLightningV10he is saying he kept a log of what he purchased at garage sales to act like a receipt…
@wickedwillow605 No offense but to IRS that isn't receipts that's a log. Completely different I guess you have never been audited. Trust me it isn't fun trying to defend a log if they speculate. Receipts no issues.
@@JohnnyLightningV10Handwritten records at the time of purchase is sufficient for the IRS. Where you get into trouble is not keeping records and then at tax time trying to recreate those records.
@juliapope7663 They require a log their is no receipts they will accept for garage sales you generated personally. I keep a log of my transactions of date and transactions. If was a place of business or business of course record.
Kevin, the first thing I do in the morning is to see if you have a video out and most times you do. I look very forward to viewing your vlogs because you are still a teacher. I have learned so much from you and I thank you from the bottom of my big heart! You are not selfish what-so-ever with your wealth of knowledge in the reseller world. Happiest of holidays and God bless you and all your family.
Thank you for watching. I usually release 5 days a week. Six if you count the trash to cash podcast.
@@commonwealthflipperKevin
Kevin Missy guitar is absolutely Truest to the Core-You still are a teacher just in a different subject and I too appreciate it from the bottom of my heart. Hugs to your wife and children I’ve been watching all your videos ever since I found you like 3 yrs b4 you quite your job on my Bday that year!😂 YOUR FAMILY ROCKS
As you said. The problem is when you sell a few items that have been in your posession for years or even decades. So its pretty difficult or impossible to show a cost basis on that old junk. I agree w. you 100%. There has to be a number between $600 and $20k that makes sense.
the IRS defines the poverty level at 14,580
I agree that a $600 limit is stupid. They could go with $15,000 to $20,000 in sales. That might actually pay for the IRS agents they have to hire to actually make sure people are paying. At the $5,000 limit, there will be a lot of people audited because the IRS will ask for past year's sales. I have heard of this happening. Think of all the penalties and back taxes that will need to be paid. Even when I started in 2001, I made sure I claimed and it was not a lot of money. Truthfully, it still isn't.
Being able to audit people was the whole idea behind the ridiculous $600 limit, not revenue generation. (And, of course, the government can use that ability to widely audit as justification to harass political dissidents as the IRS already done to more to wealthy individuals.)
Why can’t Walmart charge taxes on anything you buy at Walmart over $600.00??? They charge taxes on ANYTHING YOU BUY!! They need to stop that crap!!!
Wait, the government is going to spend more than they take in???? Isn’t that clearly the definition of what the government does on a daily basis????
@@johnathin0061892 - No, it wasnt. They don't have the manpower. They are vastly understaffed. Like half of what they need which is why they had the bill to hire people over 10 years. They have significantly less people than they did 10 years ago and they have tons of people reaching retirement age all the time. They don't have the resources to audit tons of people. I had a tax issue and it took 2 years to fix it because every communication was like a 2 month process.
100% fact! i have been rselling full time since 98' on multiple platforms once the law gets to $600 and 1 transaction remember its law the irs cant change it not enough support in the house or senate when they know how much REVENUE this will make for FICA taxes (SOCIAL security and Mediacare) they figured out how to stop that well from drying make sure the Resellers and GIG workers are paying the taxes they owe! unfortunately Diane you and i are in the MINIORTY the majority are tax cheats and tax evaders but they will find out the hard way like you said when the IRS finally gets a 1099k on them and the irs requests from the platform or company (if your a gig worker) for your past years GORSS earners and if you were under the impression (have no idea why you would) that if you didn't get a 1099k means you didn't owe or have to pay taxes FAR FROM IT! but this is stuff you should research prior to selling online or doing gig work!
frankly if the majority of sellers who are tax cheats and tax evaders do get back owed tax bills i have no sympathy or remorse for them they got what they deserved
if i can do my self employment tax everyone else can too if you don't want to and want to have an under the table job NEWS FLASH selling online or doing gig work IS NOT LONGER an option get use to that! want to work under the table hide you earn from uncle Sam have a yard sale or sell at a flea market (Btw by law your suppose to report that income as well!)
Your daughter has done a beautiful job on the ornaments!
The citizens of this country are so heavily taxed, its ridiculous!! I feel most people are honest when they file their taxes. If the government would not "live beyond their means", they wouldn't have to continually invent more avenues, especially cut way back on monetary donations to all the countries that we send to. I could go on for days....stay united, vote and hold our congressmen and senators accountable for their promises they make while running for office! Please leave us little guys alone!!!
Among the 86 Western, Capital countries, we are 56th in tax revenue per taxpayer. We are also only 51st in tax dollars spent per taxpayer. We don't collect enough although that is mainly from the wealthy and we should spend more (although less on many things such as military). We could eliminate so many problems and reduce our personal expenses drastically if they would fix the entire system. Taxes should be simplified and streamlined instead of having so many different types and having to "do" our taxes which other countries don't do. They have an amount and they pay it. There is a reason our infrastructure and a lot of things are falling behind the rest of the world. Most of the money sent to other countries are done so because it is vital to our own country. Our legislators aren't exactly doing it out of kindness, they barely want to provide for their own constituents. They are doing it to maintain alliances, preserver trade, preserve supply chain, get access to goods or resources, etc. For example, Ukraine is vital to the entire world's food supply. It would kill millions worldwide if their food industry were damaged with famine and food prices would skyrocket, especially what based products.
@@rjrobbins2 I get that about Ukraine and also like your ideas about simplifying our taxes. However, savvy news watchers like me have picked up on the waste, fraud and abuse issues also happening in Ukraine with our tax $. It's become one big "slush fund". Not getting into politics beyond this: Not only do we plan to pay for rebuilding their infrastructure - when our own is crumbling - we are currently paying for Ukrainian citizen's pensions. ALL citizens there get one, whereas in the US it has become rare to find a job where you can even receive a pension. WTH? We currently have a retirement crisis to deal with here!
Also, it came out last month that the IRS has been investigating Microsoft for years. The IRS found they owe $29 BILLION in back taxes (not including interest & penalties). Microsoft has lawyers that are fighting it, but only a fool would think the IRS is that far off in their figures. They are sticklers for detail.
Why aren't taxpayers concerned about blatant corporate fraud like that? Especially with the gov't tax breaks and incentives they already benefit from. Instead, they will argue over what is clearly minutia; the "low hanging fruit" like online transactions (most of which have no tax liability anyway). As they say, we get the gov't we deserve. Too many are small-minded thinkers that are happy watching football, etc. while their tax dollars are being abused on the BIG wasteful issues. JMHO.
The USA is $32 TRILLION in debt!
Thank you so much for letting us know! This is a great relief as a small seller. I'm really enjoying your great finds, too! And, of course, there's those beautiful animals that I adore 😍
Thank you for using lay terms to break this down. 💕
My primary job is an HR specialist and I received a fi-serve from the IRS and realized that they were probably going to postpone it another year. Thank you for the confirmation.
And yes, I already claim my eBay income on my taxes. If you aren’t doing it already, get started so it’s not so hard once they start sending out those 1099s.
@@Secondwindoregon and since there phasing it in over the next few years it will eventually get to $600 and 1 transaction sellers new and old alike who never got there 1099k and for whatever idiotic reason thought they didn't have to report there income (gross) once you do get that 1099k the irs has the ability (and most likely will) request Previous Years GROSS from any platform you sell on and say you made 15k but never report that gross or 10k but never report that gross or 100k but sold less then 200 transactions and never received a 1099k and never reported that 100k Gross YEP irs is going to send you a BACKED owed tax bill you will be crying then! guess i wont have any remorse or sympathy for ANYONE that is in that boat ill say you got what you deserved for being a tax cheat and tax evader so as secondwindoregon stated BETTER DO your taxes NOW and also go back over your previous years and do them as well DOING taxes and PAYING taxes are 2 totally separate things doing takes is reporting your GROSS what you earned and then taking any legal deductions to get that GROSS down to as close to 0 as possible that is your net and that is considered your earn income (you pay self employment tax 15.3% (which is Fica) and you also use that net and report that on your income tax return as EIC its all very simple)
@@Secondwindoregon.
I’m confused is it $20,000 200 transactions or $5,000. Can you help me understand. I saw a video Kevin did maybe a Mth ago that I thought he said they weren’t starting it until 2025? Please help if you don’t mind I have medical issues and I’m definetly confused after watching this. Thank you from the bottom of my heart. Have a great weekend and stay safe!
Thanks for your information on the taxes and IRS. It helps those of us that are doing this part time for sure! I hope you and your family had a wonderful Thanksgiving!
The IRS is so understaffed that they would not be able to handle all the additional work from it. It took me 2 years to fix a tax issue because it takes them weeks to respond, if they do at all.
Same. They audited me last year for 2017, my first year reselling over $20k. They never sent me a 1099 and I actually thought I was under $20k and that if I didn’t get a 1099 I didn’t need to file at the time. After all my expenses etc I had to pay them $300, my tax pro $300 and it took them 4 months to figure it out. I hope the tax agent didn’t spend it all in one place. 😂
under staffed? I thought they hired 87,000 new agents?
So glad to hear they pushed it back again. I really didn't expect it to be this soon since we had to wait prior.
Kevin, thank you so much for the great information you provided regarding Taxes and IRS. Your wealth of knowledge and sharing it with the viewing audience is so much appreciated.
Your the best at keeping us IRS updated!!! Watch you always love your informative video's. Thank you
Great video, Kevin, it will be interesting to see how the IRS finally rolls this out in the long run it will cost more than they get out of it but then again, that’s the IRS go figure. on a brighter note, I hope Reagan has some leftover craft projects that she sells this year. I absolutely loved the ornaments she did last time and also I ordered my ornament. Thank you.
She sold a bunch today but still has some left.
Yup, I sell on ebay to downsize. Have had to respond to a 1099K for years for the state I'm in. Always have a loss - so pay less taxes!
No one ever accused the IRS of being smart; but they are relentless!
So,
All of my stuff that I bought over the years if I’m in my 60s? Were bought with after I paid my goddamn W-2 wage related tax dollars.
If I was dumb enough to convert that after-tax net income into a brick for $6 dollars each and then I come back and sell it years later for $4 dollars each why is that considered a profit or taxable income or even income at all? I’m merely converting my after-tax net income from dollars into Bricks and then back into dollars again.
I’m not profiting from anything I’m simply converting my previously net income which I had already paid taxes on into something and then reconverting that something back into dollars at a loss for a certainty.
Also if there are thresholds that the IRS code stipulates that state that you (if below that threshold) don’t have to file an income tax return?, Or certain threshold for “gifting” a certain amount to family members? Then there should be a similar threshold for people selling their [THEIR] old accumulated crap.
“Income” & “Profit” is NOT something one gets from selling an goddamn used couch, or clothing that doesn’t fit any longer.
This is goddamn taxation on TOP of taxation.
Most of my sales have been personal property for a while. Been in the family SO long, of course there are no longer any receipts on original purchase. Guess me and accountant and lots of research will have to figure it out. I know how to figure out expenses, etc. Thanks for the info!
Relieved about the IRS Info! Thank you! I am a small seller online but have been selling for 20 years. I have never gotten a 1099 from eBay. I was so nervous about the $600. The fees are so high on eBay. By the time you subtract the fees, COG, time, travel, the $600 goes way down and is not worth filing IMO. Ebay is getting harder to sell on these days. Finding inventory also, because everyone knows everything now. Goodwill pulls items etc. Discouraging. Glad I don't need to file now.
"The fees are so high on eBay. By the time you subtract the fees, COG, time, travel, the $600 goes way down and is not worth filing IMO"
IMO if this is true then it should not be worth it to sell online either SO WHY DO THEY even bother! at that rate its a waste of there time might as well just sell it a yard sale or flea market or donate it and use it as a tax write off! the argument about im not making any profit is BS i do not believe a word of it its just excuse to evade and cheat taxes!
btw this is directly from the IRS website news release on the $600 and 1 transaction
"It's important to note that the higher threshold does not affect the actual tax law to report income on your tax return. All income, no matter the amount, is taxable unless it's excluded by law whether a Form 1099-K is sent or not."
which means NO matter if you get a 1099k or not YOU STILL HAVE TO REPORT your GROSS earnings to the IRS only thing a 1099k means is that the platform or company (if your a gig workers) has reported your GROSS earnings to the IRS!
if you have the mindset you do guess what when the threshold finally gets to $600 and 1 (yep its law no getting around that its being PHASED in its not going anywhere) but when it gets to $600 and 1 transaction the IRS will have your info and once that happens they can request PREVIOUS years GROSS earnings from the eBay (and any other platform you sell on) and guess what if you have not been reporting GROSS earnings they will send you a HUGE back owed tax bill (enjoy paying that)
i suggest getting all your previous gross earnings and DO YOUR taxes when i say do your taxes you get each years gross earnings and then USE your legal deductions to get that GROSS down to as close to 0 as possible or once you do get your first 1099k you will owe back owed taxes for all the years you didn't get a 1099k BUT sill were required to report
At what point and is it happening for 2024, or are they going to implement this starting in 2025, for I’m so confused…. Thank you for your from the bottom of my heart. Sincerely
Years ago, I played in a band and I acted as the manager of the business for the band. Many venues wrote a check to me and then cashed it so it looked like I received all the money for the gig. The reality is, we were all considered independent contractors. What would happen to me is, at the end of the year, some places would send me 10's of thousands of dollars in 1099's. I then had to recall who played what gigs and send out 1099's to them. Many musicians that filled in for us didn't report the income but I had to send a 1099 if I paid them more than $600 or I would be on the hook for the taxes. It was a huge pain. After that, I just played in bands where somebody else handled the business part.
Damn paperwork is a pain in the $*& when you're just trying to enjoy what you do for a living. I can see why I paid HR Block back in the day for my taxes.
Pain in the neck yes. It's the reason you should keep a written record of all expenses; cost of goods, gas, auto repairs, sq footage of storage, supplies, mileage, postage, travel (hotel as well as food), phone, utilities and any other expense that has to do with your business. Make a list of how you spend money for your business. Then make a custom sheet for each day or week, whatever is best for you. Banks such as Wells Fargo have business accounts that will separate purchases and give you a recap each month. Between the cash recap (your hand written sheets) and bank statements you should have all your expenses. I realize that sounds like a lot of record keeping, but you should want to know where your money is going. Even if you are preparing your own taxes, you will need those numbers to file a sch C. And if someone else is preparing your taxes, by having the P&L you should save money with them. Hope this helps someone.
@@sbates AMEN!! as Technsports stated on the Video he did with MEL 99.9% of resellers are LAZY as a full time reseller for the last 25 years on eBay and amazon and every other platform that has come along since agree with Tech 1000% those that whine and cry about its a burden, to much paper work are ALL just lazy and tax cheats and tax evaders! probably not even telling the truth they are selling personal items JUST trying to use that as an excuse TO EVADE paying there taxes
what happen is the IRS wisend up and realized since covid how much all these Platforms were making in the billions (majority of that revenue is from Sellers Sales) but yet had very LITTLE in return from there sellers VIA Self Employment tax so the tax cheats and tax evaders (even if they only made $600) could not handle an adult responsibility to Self report there Income (gross) and then do a small bit of work to get there GROSS down to as close 0 as possible again if you think doing this is burden or work then your JUST LAZY and should NOT be allowed to sell ONLINE at all you want to work under the table GO set up at a flea market or have a yard sale! I hae no remorse or sympathy for people like this!
@@sbatesthe problem is many of us are not a business we just have 20 years of knick knack collectables in our attics and garages and selling them off to pay off a bill or buy a new toy or as spending money for a vacation is all our goals are in addition to clearing out our hoard. Coming after us is wrong and they know it....hence the constant delays....they can't figure it out nor have the manpower to look at the exceptions and make reasonable determinations!!!
I agree with you to a degree, but the IRS only wants proper paperwork. If you are selling knick knack's bought back years ago, you had to do something to keep then safe in order to sell. Most likely you didn't make a profit when you factor in cost of the item, plus security and storage. Again you are only paying taxes on profits.
If you receive more than $600 in 1099's make sure you report all your sells as well as your cost. Hope this helps a little.
We pay sooooo much in taxes. It’s ridiculous how much we pay. I sell stuff and will pay my taxes as I’m supposed to, but how much taxes is enough?
Kevin - can you pleeeease do a video explaining your organization system? How you store items, where, and how you note & identify which drawer or bin an item is stored in. Please 🙏
Have you searched his old videos? I think he's done one for this in the past 😉
He probably just fill in the Custom Fill.sku for the location of the items he has License plates. on the bins If you notice. He probably put the license plate number in for items location
$5K is much more reasonable than $600. I was hoping $10K might be the magic number but I guess we'll find out soon enough 😉 To your point about some folks needing to control income, I have to be mindful of that because I took my Social Security at 62 so there's a threshold for me on what I can earn without it affecting my SS income. Once I'm 65 I won't have to worry about that (1-1/2 years!) and then, watch out world! LOL
@fatgrandmafinds Lol. I did the same thing! Took early retirement at 62 (because I was exhausted, having not only spent all the years working fulltime, but I also spent 25+ years as a single parent raising my 4 kids. That's like having an additional fulltime job!) However, I continued working part time, for the extra income. I've now reached my full retirement age, AND got my ebay seller account going. So as you said, look out, world, lol, cos I can now earn as much as I want!
@@pamprier4710im confused is $5,000 I thought they weren’t going to start until 2025, thresholds of $20,000 or 200 transaction-I thought Kevin did a video on this one too. So after seeing this one I’m super confused can you help please understand. Thank you from the bottom of my heart.
Thank you for kind, personable, sharing of important information. I like your conversational style of communicating. You, your family, pets are nice to watch, and you're nice to have giveaways as well. Thanks for a having a very nice youtube channel. I always watch-informative and relaxing. 😊
Thank you
Interesting. I've thought of selling some things on ebay but this will scare me away if the IRS ever goes down to the $600 level for sending a 1099. That's way too little, I agree. Many small sellers that just sell some used things they had at home, like a garage sale, are basically selling things that they originally paid full price for when they got them new. So aren't all these type of sellers taking a loss ( at least for tax purposes) when they sell, and shouldn't have to pay any taxes ?? Granted, most of these type of "garage sale" type of sellers wouldn't even have $5000 in gross sales for the year, but some might . And they certainly could have $600. Will that mean they will have to keep records of everything on what they paid for them ? Many would forget what they cost, since they might have bought them years ago without ever planning to sell them. Can't they just tell the IRS they bought them new and sold used for less so they owe nothing ? Just curious on that as to what you know as you seem very knowledgeable.
Now I read that according to the IRS, if your online auction sales are the Internet equivalent of an occasional garage or yard sale, you generally do not have to report income from those sales. That is what I thought it should be.
I watch a lot of your videos lost my job in August and trying to get some money for Christmas.
Great explanation of factors at work regarding $600 threshold….IMHO….less than 15k at these gig type jobs really just a side hustle that keeps the economy rolling. I believe the threshold should be tied to minimum wage ….below that no 1099 should be given. I would love to see an economic study done on this question of costs vs benefits to the government.
The government assumed new tax dollars without doing the research. I’m sure some states were in on it too. Good job explaining it all.
I just received a reply from one of my state senators up here in NH and she has informed me that the irs has once again delayed the roll out until 2024 and upped it to 5k. I sent over to you on Facebook messenger.
Kevin, you should do a video explaining the difference between sales tax and income tax. Seems to be a lot of folks who get confused over the two. I see a lot of ppl saying they have already paid taxes on items and shouldn't have to pay more. 🤷♂🤷♂
Just stumbled upon your videos. Great video. Thanks for the irs info too. Can't wait to watch you regularly
Great info as always. I urge all of you fellow viewers to write to your Senators / Congressmen / Congresswomen addressing the concern of "double-taxation" on used consumer goods. People should not have to be paying sales tax on an item which has already been subjected to government tax collection (e.g.: buying a "used" item at Goodwill, Salvation Army, etc).
Oddly enough... if you paid tax on a used item which had already been previously taxed when originally purchased brand new, and you then sold that same single item on eBay, it has now been "triple-taxed" by the government. A single "used" item being repeatedly taxed over and over again?... this needs to end somehow.
I'm trying to find the writing in the Schedule C that states something about showing an earnest to build a business to be eligible for write offs. Not showing an earnest will qualify me as a 'hobby reseller'. Which I always was. I didn't keep track of mileage, receipts, ... But if they decide that I'm am not truly forming a small business, I can't write stuff off. Scary stuff.
this is from the IRS website
"If your business has had a profit in three of the past five years, the IRS considers it a business, not a hobby."
“Just because a business doesn’t meet the three-of-five-year profit (rule) doesn’t mean that a taxpayer can’t continue to deduct losses on business but the taxpayer must be able to prove … that there is a profit motive,” Freedman says.
Hey @@bennystratton7734, Thanks for this.
I still haven't gotten my taxes back for last year. I had them in right at the end of tax season. They sent me a letter a month later and needed more information. I sent it to them and then in the beginning of July they sent me a letter saying give them 60 days and that they don't need any other additional information. So now it's been almost 5 months since I received that letter. I am so frustrated and just trying to be patient. Has anyone else had any issues like this? I would appreciate any help or comments. Thanks:):).
Thank you for the video and the info on the taxes.
Thank you SO much for this info. I have been stressing just wondering what the IRS is going to do. I never make over 5k anyway. Great video, thanx.
If you’re just a part time seller and not a business, how can you use schedule c to claim expenses? You can’t. That’s messed up.
You can use schedule C as a sole proprietor using your SSN being doing it for years with my CPA
Right you are, but not every seller is a Sole Prop. Some are just folks getting rid of stuff, so Sch 1 Line 8 is better for them. Happy Holiday @@artreggiano933
Thank you for the info. I need to create a better system for tracking my selling.
Thanks for the info Kevin. I'm sitting here looking at the pile of Christmas stuff to list. I'm such a procrastinator.
Perfectly explained, well done
Love it when the Christmas opening kicks in every year!
This is something that drives me crazy im on disibility and make a little over 900 a month i want to get into reselling comics and collectables beacuse i have collected for along and have a decent inventory i have recipts for everything ive bought but scared to sell beacuse i havent done taxes in 20 years or made any side profit at all so if open an online shop im a buisness? Thats crazy cause i wont make that much but could loose my disibility and insurance for selling a collection i dont mind paying taxes on end profit so confusing
Just sell slowly so you can sort of control how much you have coming in. That's what I do. I took my social security at 62 and I have limits on what I can earn without it affecting me. If I'm making too much one month I can put my store on vacation mode or stop listing and it slows sales down.
How do you account for what you pay at garage sales or estate sales since you don't get a receipt?
I'm new to reselling and have the same question.!
@@m.anderson646 Do you claim the expense the year the item was purchased or the year the item was sold 🤔
There are two ways to do it. I do not use the itemized method is it takes way to long. I have a separate bank account and use money in money out. There will be a follow up video with my reseller genie next week.
How do you all pay taxes on items that were purchased as a lot? Like say a lot of baseball cards. If you sell them individually, would you come up with the average price per card and pay taxes that way or once you’ve turned a profit on the price you paid for the entire lot?
Think of your accounting books that have two columns. You sell an item, the sale price goes in the income column. The other column would contain all expenses, including all purchases sold and unsold, shipping, packaging materials, ink, office space, accounting products etc.. You don't need to divide the cost of each card out because the total purchase price of the cards was a one time expense.
@@lindak361 thank you.
And yet others are announcing it's being pushed off another year. I don't know who's right. I guess I'll just have to wait and see
At this point I’m convinced they know the lower amount will never work or be put into action and is just a scare tactic
There is already a bipartisan bill in the House that would raise it to either 5 or 10K. Sadly, because of the disfunction in the House they still haven't voted on it. So, the IRS stepped in to delay.
@@don951 $10K would be good for a couple of reasons...most people selling at least $10K worth of stuff are very likely resellers and it will force those folks to file if they haven't been. This might weed out some people who don't want to be bothered with all the tax stuff. Or if they don't want to get a 1099 it will cause them to slow down their selling which is good for those who've been filing and don't mind😉
Plus the Republicans put a stop to the billions of dollars that Joe promised to spend at the IRS with all those 87,000 new gun-toting agents. Maybe they are putting it on hold for another year because they can't enforce it without more money in their program.
@@don951Don I’m confused I saw a video from Kevin I thought maybe a month ago and also Rockstar Flipper. And watched a Video from “Facts Matter on Nov 24,2023 that said they were sticking with $20,000 or 200 transactions. And on facts matter by Roman from Epoch times after him saying they were going to start it when you hit more “It stated that IRS is waiting for next year which im assuming is 2025 that they will start with the $5,000! Can you help me here for I’m confused big time after watching this video from Kevin. Are they starting the $5,000 in 2024 or 2025. I don’t have much to get rid of that I could have a yard sale but I have 5 pcs of good quality music equipment that my son in law used for ESPN several years back when he worked there and no one will pay $500 at a yard sale for them. Can you please help me understand this better. I read through all the comments and yours seemed like you understand what is going on and you won’t give me a hard time about this. Pretty please help me out-From one reseller to another (whom is afraid to even bother with eBay or anything anymore) Thank you from the bottom of my heart! Thank you once again for being so kind. Just trying to make a lil to make ends meets in this screwy world that we are living in. Thank you Ron, from Kelly
It's interesting and often entertaining (not always in a good way) to try and figure out what the IRS will do next. The one thing I've learned in decades of dealing with that entity is this: don't trust what they say EVER! Don't take anything at face value until a final decision is officially published and the date of action is at hand. Always question and always get every single thing in writing. If you try to comply with news releases and statements before the final decision, you'll be spinning in circles. Sadly, just because they say it doesn't mean it's so.
My wife I have been enjoying your videos for several years now and have learned a tremendous amount from you. Thanks! Our ebay store is still doing well and are having a blast with it. Now since we're retired want to start a TH-cam channel and would you be so kind as to share with us what camera you use and what you use for editing, along with anything else that might help us to get started. Best regards, Tim & Leslie w/fletchflips
GoPro hero black 9 or 11. Is what I use
@@commonwealthflipper thanks so much. Greatly appreciate it.
Yeah, nice news but this came to my GF on her new account. (As of Jan 1, 2022, the IRS now requires us to file and send a Form 1099-K to everyone who sells $600 or more.
Since you’ve made $600 or more in sales this year, we’ll need your full 9-digit Social Security number (SSN) or Individual Tax Identification Number (ITIN) to send you your 1099-K.)
So, either eBay didnt get the memo or they are sending out 1099 at the 600?
Buy a phone you pay taxes on it. Sell the phone the other person pays taxes on it. Now they want a third tax on the same transaction of the same phone claiming it as income for you if you sell it for more than you bought it for. It's just never enough for them.
They did this for the 3rd party platforms to report at the 600 level so they get the data to assist with the decision to change and get the info to see if those who resell are self reporting - just my opinion!
Thank you so much for the ino and your input!!
New subscriber, love the channel, and the Van Halen 1984 on the wall 🤟
Thanks for another great video! Be blessed!!
I Think most of the platforms are still going to send 1099’s anyway because they have already put all in place. One big thing I would like to stress to people that are selling full time keep your personal finances separate from business.
This tax law where I have issues is people like my daughter that venmo money for things like splitting meals to friends, they have to keep up with that or they will owe taxes on that money.
Also if your making purchases at estate sales or yard sales over 300. You need to either write a check or fill out invoice. You need the proof for the IRS.
Or you could have a business account.
no venmo , cash app and paypal all have 2 options "friends and family" and "goods and services" sorry PayPal has been around for 20 years the other 2 are just copycats of paypal no excuses not to use friends and family to split meals and goods and services to what....pay for goods and services very simple concept! now i know PayPal will limit or even suspend your use of Friends and family if you use it to much i have no issues with them doing that it should not be an everyday thing if you are sending money to and from friends and family use Zelle!
Thank you for this information ❤️ Great channel as well
Hey Kevin
This is my 1st year on eBay I’m scared about the taxes situation is there a checklist anywhere to print to have everything ready needed ? This is really stressing me out I can’t afford high taxes bill I just don’t have it 😢
I do my own taxes online, one of the free ones recommended by the IRS, been doing it for 11 years as a reseller on ebay. I don't make a ton of money, and after deductions, on paper, I make next to nothing, lol. Just keep your receipts, the program walks you through the self-employed section.
What about yard sales and estate sales no receipts ?
@@nancystockwell7829 yard sales and estate sales no receipts what then ? 🤷♀️
@@carmensusi837 Just write stuff down and keep track somewhere. It's rare for anyone to get a receipt at a yard/estate sale and while the IRS is annoying they're aren't so dumb they'd expect a receipt for that😉 At some point, they have to trust us.
@@carmensusi837 Keep a record/log of where and when you buy stuff and be sure to save it. Some professionals that do estate sales will give you a receipt if you ask, otherwise all you have are your records. If the IRS audits you and pushes the matter, you might have problems, just a risk we run when we buy stuff at yard sales (if possible, have enough extra money to cover yourself if they deny the deductions on money spent on sales with no receipts.)
I used to sell on ebay but since the government got extreme greedy I stopped, I was selling used things we had , things my kids outgrew or that we just didn't want anymore. I will be damned if I will pay taxes on crap we paid taxes on when we bought them originally. It is ridiculous.
I am not a reseller, I like to shop. I do not understand , the items sold at yard sales, thrift stores etc. Are primarily used. They have been taxed upon original purchase. Crafters,materials have been taxed. I do not think that the seller and reseller should have to pay tax on an item where fair taxes have been paid upon original purchase? Thoughts? The seller, it is your property ,used ,reusing is beautiful then throwing away.
Double tripling taxes on say a used fry pan, shoes etc. Just not fair ,not right. It does not make sense.
. My little opinion is on personal items we all use, that has been taxed when bought. I wish all the resellers the very best. I hope the new tax law are revisited. To the shoppers and home sellers continue on. HAPPY Holidays to all ❤
I have a friend that they tried taxing on 120k because he kept depositing and withdrawing the same $500ish on gambling sites. He didn't end up getting taxed but it was a huge pain to get all the documentation together.
Pay taxes on the gas you buy to get to the job that you pay income taxes at… then pay your mortgage that also has property taxes added to. Then you take what’s left of your paycheck and buy the things you need and pay sales tax. When you resell those things, you get charged more income tax on all that previously taxed stuff.
THANKS for this updated info!
Remember for all your retirees that collect Social Security or disability. Next year you’ll be able to make @ $56,000 that is above your Social Security that you receive during the year. Without worrying about taxes.. I think this year you were only allowed to make $19,000 above your Social Security without worrying about taxes. This is only for Social Security or disabled people.
Where can i check on this im on disibility making 900 a month just isn't getting me by anyone ive collected and recently bought some things from sales i know i can make a few bucks on but scared to open an online store i dont wanna get in trouble with ssdi
Make sure you include any other income like pensions, etc.
And also if you received the item as a gift or inheritance they can't tax you if you sell the item
They probably would make more money if they get rid of IRS raise sales tax that way they can taxs all age brackets this topic could be a hot one too
12k or 24k good thresholds
How do you prove what you have for a product when you buy at yard sales all you can do is put it in a spreadsheet cause you don’t get a receipt
I’m so excited I just ordered my ornament I think this is my 3rd one
Thank you
I ordered one too 😊
FYI your gross includes returns. I learned this quickly last year and in previous businesses I was involved with returns got taken off our gross revenue at end of the year.
yep its an expenses and a legal deduction been doing this for 25 years Returns can add up quick if you get a lot thankfully i don't get a lot of returns
@bennystratton7734 Problem is a large return can be the difference for some to get a 1099 and not get a 1099. Had a friend sell a 3700 sound system that got returned and then sold it again for same price.
@@JohnnyLightningV10 then you use the the return as a the deduction so when it's tax time ebay will report gross of 7200 plus shipping then you can legally deduct the return of 3600 plus shipping and fees that you were not reimbursed for so it would bring your net down to 3600 give or take there is no excuse
@bennystratton7734 Yep but my reasoning is it can be the difference when someone gets a 1099 and doesn't.
@@JohnnyLightningV10 well its now the law so if they get a 1099 because of that they have to do the work if they don't want to do the work then they need to stop selling online period this proves Technsports point that 99.9% of resellers are lazy i 1000% agree with him on that i have no sympathy or remorse for lazy sellers that don't want to do little work like doing tax btw even if the person got a 1099k because they hit $5k or not next year if the person made $3600 they still are legally responsible to report that $3600 so your arguing a null point!
Love your cabin, I bought one last year..unfinished.. looking at yours makes me want mine finished..would you mind sharing the size of your cabin? Mine is 20’ without a porch..
24 x 12
I have been selling on eBay for 13 years and always reported my net to the IRS. I will continue to do so, as much as I don't like it, for as long as I resell. I do not like the idea that some sellers are not paying their fair share but I can't change that. I will continue to just do my thing. Give Caesar what belongs to Caesar and the first 10% to the King.
Thats not what that verse means 😅 this government isnt exactly being righteous atm
People mourn instead of rejoice. Pay up
For people that are doing it legal the 1099 form can actually be helpful when it comes time to do your taxes.
@@ohiograssman1564 Jesus paid the tax for Himself and Peter, and that government was certainly not a righteous one, either.
@@ohiograssman1564the tax collector has never been righteous.
O
I paid 60,000 in taxes due to real estate investing.i refused to send in my 1099 from last year .what the heck are they going to do to me.i made maybe 600.00 lady year on ebay
My biggest question is are they counting "friends and family" transactions or only "goods and services" transactions on apps like Cashapp, Venmo, and PayPal.
Pretty sure friends and family aren't counted.
I have been saying it for years wonder when the big guys are going to get more of our money 🤗
I live in Massachusetts and we have been at the $600 1099 for a long time
Not a surprise in MA
@@commonwealthflipper what's that suppose to mean?
Under the American Rescue Plan, Virginia will receive $4.3 billion in direct state fiscal aid and $2.3 billion in local government aid from the federal government.
your state paid way less into the system then MA in 2022, did it ever cross your mind that if we all thought the way you and others on here did that the government shouldn't collect taxes and we shouldn't pay taxes then your state would not be getting $4.3 billion in state aid and $2.3 billion in local Government i mean someone has to pay for the federal aid your state is getting it isn't falling out of thing air! maybe others in states that paid more into the system then your state might feel your stated does not deserve that much what about if the states that paid more into the system got to dictate how much states that paid less into the system received for aid from the Federal government!
Good morning Kevin!😊
If taxes are paid when an item is bought new isn't it double dipping by the government to tax it again. How is this ant different than selling at a yard seller?
I'm trying to down size my belongings, how do I show what was paid for the item that I've owned for years? or what you pay in cash for yard/garage sales or flea markets?
like some do keep your receipts for everything its a lot easier to do nowadays then it was decades ago now you can scan it in and have nice an neat in a digital folder on your pc or for yard sales and flea markets do what i have done for 25 years reselling full time get a sales receipt book at walmart or dollar tree then were ever you go that does not give receipts have them make a receipt for you using your sales receipts book tell them you resell online and need this for tax purposes
sorry when people bring up excuse like yours i have no sympathy or remorse for them there is no excuses in my book
@@bennystratton7734way to be an a-hole for a simple question. When they bought the items this BS wasn’t a thing. No one keeps receipts for the life of something they own. Condescending prick.
Thank You for the info
Where did you get the info on the taxes from?
Thanks for explaining that.
The worst part is the governments pretty correct about this. There's alot of businesses and people hiding money. But in their incompetence, they've wouldve caught poor people in their net who absolutely should not be dealing with additional BS.
The biggest culprits are themselves.
The wifey says, “If you’re not a business you can use schedule 1 Line 8 to put net income after expenses.”
This doesn't really change anything. The $600 isn't s minimum that you start paying taxes at. You must report it anyway. The only thing this does is change who has to report the income to the IRS. With these new rules the platform is required to report anything more than $600. Currently you have to report it. You always have to report all income you make. Remember the more deductions you try to take or creative things to do to try and reduce your income increases your likelihood of getting audited.
amen! government opened there eyes after covid and realized the Majority of resellers and gig workers are tax cheats and tax evaders only way to make tax cheats and tax evaders comply with tax laws is lower the Minimum amount that the Platforms are required to report Gross sales if the Majority of resellers and gig works KNOW that there income is going to be report by the Platforms MANY many more will comply or at least this is what the IRS thinks i think others or was praying for that for 2 years now and that is i feel many many would just jump ship and stop reselling all together for one of 2 reason they don't think they should have to pay taxes like many have commented here and all over YT and FB or they will do there taxes and see that they are NETTING next to nothing if nothing at all (maybe even in the red or losing money) been reselling 25 years on multiple platforms have been reporting since day one always showed a profit for 3 reasons because the Self Employment tax is FICA (which is social security and Medicare) you get points toward collecting retirement (since this is basically the only job i have had in 25 years this is very important to me) also the more you report as income or NET the more you get when you are getting a retirement check! 2nd reason i show a profit is if i ever want to sell my business it will be worth something because when bankes go to lend buyers money to buy a business they DONT consider your Inventory as collateral or Assets the main thing they look at as to what your business is worth is your income tax and what you reported as Net so if its 0 or close to that then to the banks that is what your business is worth! i also report profit to keep from getting audited in 25 years i have never once been audited
Enjoyed seeing your Store.
Think about how many people work under the table.
How do you show for items you bought at garage sales and resold on ebay. Nuts
Stay blessed ❤
I don't know how to do any of the deductions stuff. I've already made like $15,000 in sales. Not sure what to do.
You have time to learn. Start now. Mileage is the biggest and best after cost of goods. Start a separate bank account now. Look into MRG
@@commonwealthflipper Thanks Kevin
@@commonwealthflipperwhat about my storage unit fee of $175 per month where I store my 5000 items listed on eBay? And my $65 per month eBay store fee? And monthly internet fee? Are those all deductible too?
@@kingstonagainstcorruption2268 yes. Everything you use to run your business is a deduction. That is why he has given a link for the reseller genie - to keep track of your expenses/ deductions
You confirmed the argument that higher taxes kills business. People are not wanting the hassle so they quit, slow down selling, or don't even try to start a business. Thus killing new business startups in whatever business the government taxes. It's been proven over and over again. Raise taxes and revenue goes down. Lower taxes and revenue goes up.
Ty for this update 🤩
Thank you for the info!!!
Do you recommend having a LLC?
Not for most people no
@@commonwealthflipperThanks!!!
Im so glad its at least prolonged this year ! I think 600 is way too low
How do you record for when you purchase at Yard Sales in the books?