2022 Changes for selling online

[bisontuba]

This U.S. law apparently does not go into effect until next year (2022), so we still have some time.

https://www.cnbc.com/2021/03/26/its-goi ... sales.html

[Three Valves]

This U.S. law apparently does not go into effect until next year (2022), so we still have some time.

https://www.cnbc.com/2021/03/26/its-goi ... sales.html

Don't be silly. New/higher taxes are only going to effect the Super-Rich!!

[bloke]

I don’t risk being a tax scofflaw, but I’ve also just about abandoned that platform for selling, and only buy stuff like car parts and little doodads from it.
It has become heavy handed, and inserts itself far too much between buyers and sellers - much as does the big social media platform in other ways.
That having been said, so many people think like children (as their schooling encourages them to remain childlike, and their places of employment demand it as well…ie. the “because we say so!” type of “reasoning”) that probably a large percentage of buyers and sellers prefer all the draconian interference and handholding.

[KingTuba1241X]

Nice, so now not only eBay will take at least 10% in listing and final value fees, but the IRS will take another 15-20%? So 1/3 of your profit is gone now...Have fun eBay, you're about to have a mass exodus of your platform. Just like with the OnlyFans thing (oh..you guys don't know about that one )

[bort2.0]

My state already adds state sales tax to eBay purchases, so they get you coming and going.

Here's an eBay hack that I've used a few times before. Sounds risky on the surface, but it's no worse than Craigslist IMO. I think everyone is kind of fed up with the fees (and now taxes), and just wants to sell their stuff.

* Start a conversation with the seller
* Build trust through authentic questions and good clear answers. If it seems legit, trade contact information and deal outside of eBay
* ^ Oh wait, eBay scans messages and won't allow email addresses to be shared in their PM!
* Take a photo of your email address, and upload it as an attachment to a message.
* Then deal offline.
* Seller should end auction saying the item was damaged or no longer available
* "No worse than Craigslist"

I think if you did this all the time as a buyer, they'd get wise to it and charge you the selling fees anyway (it's in the fine print, something like that). But for selling a few things here and there -- particuarly expensive things like tubas -- it's helpful for buyer and seller.

[donn]

I kind of doubt the tax bite is going to amount to much, for most of us. The real nuisance is going to be the "cost basis" for reporting your gain. When I sold York No. 3, because my playing needs had changed, how much did I make? Dang, had it for so long, I don't really remember what I paid for it ...

[bloke]

When I saw the "raw materials" for a recent project, I went ahead and won that auction.
I'm not fond of the seller - and not fond of the platform, but I wanted it and the pricing was somewhat casual: roughly at the top tier of what car parts (which I buy there) cost.

Again: That platform - as well as the big socialist-media platform are both obsolete, and no longer any fun.

"Nothing good lasts all that long." - blokefucius

[bone-a-phone]

So how much do they give you back when you lose money on a sale?

PayPal sent me a 1099 last year because I have a business acct, and for various reasons I received horn sales money on that account. Buying and selling horns is not a business, just a money losing proposition, mainly. Better than gambling. You'd think the state would support the arts ...can't read the prompter, that might have said "support old farts"... not sure.

[donn]

If you have other capital gains, I assume this goes in the pot and contributes to the sum, so your loss on a sale reduces your tax liability for overall gains. You can't count capital gains loss against regular income, though. [ I am not any kind of tax expert. ]

[bisontuba]

BTW, this includes PayPal & Etsy too....

[bort2.0]

Ignoring inflation...

If I buy a tuba for $10,000, and sell it a few years later for $8,000, are they viewing this as $8,000 income that needs to be taxed? Or is this rather a $2,000 loss?

The real solution all of this is trading. Barter what you got for something else that you want. No money changes hands, no values to trace. :-)

[Three Valves]

The real solution all of this is trading. Barter what you got for something else that you want. No money changes hands, no values to trace. :-)

Too late. The Big Three have already marked you as a heretic and passed your name to the IRS.

[donn]

If I buy a tuba for $10,000, and sell it a few years later for $8,000, are they viewing this as $8,000 income that needs to be taxed? Or is this rather a $2,000 loss?

$2,000 loss.

Up to now this seems to have been of interest only to businesses, and the standard instructions talk about business accounting, but it looks to me like for a person, it's capital gains. Fill out schedule D with sale price, cost basis etc. Do the capital gains worksheet after you've reckoned up your regular income - though in the above case, if capital gains is limited to that particular item, or if it adds up to no positive gain, there's no need for the worksheet, because there's no tax on $0.

[Three Valves]

....because there's no tax on $0.

Can you say that more loudly so everyone can hear??

How about expenses are not a "subsidy??"

[donn]

How about "a tuba isn't a very good investment opportunity."

[bone-a-phone]

In my case, I just removed the instrument money from my return because it wasn't a business. So, yeah, the $0 thing applied. My tax people allowed it, and it's their job to keep me out of Dutch. It was just a little infuriating when I saw the PayPal 1099 with instrument money on it.

They kill off checks then they tax the hell out of everything. Enough to bring Ayn Rand back from the dead.

[LargeTuba]

How about "a tuba isn't a very good investment opportunity."

I sure have made decent money selling tubas.

[bloke]

Christians love claim that Jesus said,
“Render unto Caesar the things that Caesar says to render unto him, to avoid being whacked in the head by Caesars club.“

[bort2.0]

I'm thinking more like Leo Goetz... First they F you with the income tax, then the F you with the sales tax. And then when they're done F-ing with you, they F you again with taxing your eBay earnings.

[KingTuba1241X]

I'm thinking more like Leo Goetz... First they F you with the income tax, then the F you with the sales tax. And then when they're done F-ing with you, they F you again with taxing your eBay earnings.

In unison "Shut up Leo!"