New Ebay regulation, anything over $600, 1099?

[Mr.Marion]

Without this conversation getting political. Hobby selling should remain a gray market.The current $20k or $5k per 3months was a good cutoff point for business/hobby. $600 could be 1 or 2 item. This will change collecting as we know it. When I bought these same toys off ebay I never though I would have to pay an income tax % when I go to resell.

https://community.ebay.com/t5/Selling/New-IRS-Rule-Under-COVID-Stimulus-Lowers-1099-to-600-Who-will-be/td-p/31781714

[drquest]

Yeah it's terrible... we paid taxes on this stuff when we bought it, now we get to pay taxes on it when we sell it, even at a loss.

[PNGwynne]

Let's sell here!!!

[rche]

Let's sell here!!!

hear, hear!!

[drquest]

Let's sell here!!!

Which works unless you use Paypal, as they will send you 1099's as well. :(

[Blue Meanie]

From what I have been hearing recently it looks like there are a few groups that are going to challenge this based on The 4th Amendment:

https://www.brennancenter.org/our-wo...hoCRN8QAvD_BwE

So it is quite possible it may not come to fruition. We'll see.

[drquest]

Being in Illinois I got a 1099 last year, was fun

[rche]

Is this for a single sale over 600, or a cumulative over 600?

[ODBJBG]

Its for cumulative, which means it doesn't effect most people but will effect a large portion of people.

The reality is, Ebay has skirted this law for ages. The IRS finally tightened things up and you're going to have to do what you always had to do, but just never did.

I mean for years Ebay didn't even charge sales tax, lol. It's amazing the laws they were allowed to break.

I'm not happy about it mind you, which is why I'm doing a lot of my bigger sales this year, but all good things come to an end.

1099 is no big deal and if you do your taxes right and report the income correctly plus expenses to sale, you shouldn't end up paying any more and might even get a bigger kickback.

I'm honestly more miffed about Ebay's new fees. They now charge you an international fee, if you sell to anyone internationally, to convert your money. You can ship to a US address and still get charged if the person has a international address listed on their account. And you can no longer block international bidders. You can go in and block it, but Ebay still allows them to buy, especially if they have a US address listed (as many do) and ultimately you're losing more money for something you can't control.

Ever since Ebay kicked Paypal to the curb, the service has become more and more expensive.

[Mego Magyar]

Nothing new to me, VT along with many other states implemented the $600 rule years ago that PayPal had to comply with. I got hit the first year having to file as a business and that cost me a lot more.

[Mikey]

Weird, I never realized people actually live in Vermont

Seemed like just a place to go to feel good

If I ever win the lottery I want to build a log cabin in Vermont -- or maybe New Hamshire