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USA and eBAY

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I copied the following from Droneted on a "sister program" on this forum stating the following

We have a new administration in DC. That means new rules for us to try to follow. The old rule for selling on eBay was anything over $20K in sales and you get a 1099 and have to pay taxes on the profit. This means you have to keep track of everything just like a real business. Now the IRS has changed it to $600. So if you live in the USA and you sell an old drone on eBay for $700, be prepared to pay taxes on $700. Casual sellers are getting screwed badly unless they can prove what the real profit was. That means you have to find receipts for anything you sell on eBay. Sell a lot of small crap on eBay over the next year and it adds up to over $600, you will need receipts for every little item. I know lots of people that sell on eBay that are in this boat with me. We are all dropping eBay as it is not worth the hassle. I am not going to get political but DC just killed off a lot of casual sellers. Most are old like me and were just trying to get by on Social Security. At 77 my time was limited anyway so it is not a big deal for me. I expect I will assume room temperature in the very near future.
 
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DoomMeister

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I haven’t liked or used eBay in years due to them screwing over the little guy in favor of eBay storefronts. My wife gave up on her handcrafted jewelry business over 10 years ago for this very reason.
 
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DoomMeister

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Just a bit of news, it is not just eBay but all such selling sites. This is also something the IRS has had in the works for some time now. Those familiar with art stock sites like ShutterStock have been dealing with this for years so it is really nothing new.

Just think about every time a car, boat, etc. that has a title gets sold. There is always sales tax charged. Sell it enough times and the government gets as much as the car was worth in the first place.

Two sure things in life are death and taxes. Given a choice right now, I’ll choose taxes.
 

Yuneec Skins

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I don't believe this is correct, this would have been the case if the "Build Back Broke" Bill would have passed thru the US Senate, which would have added 87,000 New IRS Agents and required Banks to Report Transactions over $600 be Reported to the IRS, I received a 1099-K form from eBay, and a Day later eBay sent me this message;
Capture.PNG
I'm not looking for a Political Debate on this issue, and a bit surprised this thread is here...
Let's Go Brandon!
 

DoomMeister

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Good to see some clarification. Could be that the guy that posted in the other forum was making more than 200 transactions per year. I know he does a lot of parts sales and repair work on DJI drones. He helps a lot of DJI users on our sibling forums.
 
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tin

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It's not just online sales... ALL transactions. An example some have used is this:
You and a few friends go out every weekend for dinner. To save time and hassle, one person pays, and the rest send that person their share. Under the $600 rule, assuming all 52 weeks, that's just $11.50 you can be repaid each week to stay under the limit. Total, not per friend paying you back.

Imagine having to pay sales taxes on money you loaned a friend for 20 minutes. They really didn't think this one through.
 
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