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IRS may label eBay sales as tax revenue

Far as I understand it with the IRS anything more than $500 has to be reported. I'm not sure if that means it has to be reported as a business and anything less than $500 just has to be listed as income. The IRS always gets their every penny.
 
If I was selling junk on Ebay that I had laying around the house and I did it frequently, I would defininetly list this as business income. The reason is that I would most likely sell the junk lower than what I bought it for and therefore show a loss on my taxes. That's just me though 😉
 
Originally posted by: CPA
If I was selling junk on Ebay that I had laying around the house and I did it frequently, I would defininetly list this as business income. The reason is that I would most likely sell the junk lower than what I bought it for and therefore show a loss on my taxes. That's just me though 😉
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You my friend are smart🙂
 
Originally posted by: CPA
If I was selling junk on Ebay that I had laying around the house and I did it frequently, I would defininetly list this as business income. The reason is that I would most likely sell the junk lower than what I bought it for and therefore show a loss on my taxes. That's just me though 😉
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Yeah, I was thinking, if a person bought a laptop for $1000 last year, then sold it this year for $500, how should it be treated :
a. As a loss of $500 toward income
b. Since the laptop was purchased for personal use, the entire $500 sale price is taxable.
c. Only the price difference between the sale price and (IRS sanctioned?) current value (after depreciation) of the laptop is taxable.
d. ?


ADD:

Other messes:
- Gotta keep purchase receipts (what do you do if the item came with rebate that requires original receipt.
- Shipment receipts (UPS, USPS, etc)
- Ebay invoice and Paypal invoice

If you do a nice volume on ebay, you need a box for mailing your tax return. It sucks big time for those who do large volume of transaction of small values.

And do they have people to go thru this receipts, invoice, etc?

 
Originally posted by: RagingBITCH
I think they're aimed at the people who make a living off eBay selling, not Joe Blow selling a laptop.
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Or someone with about 100,000 feedback and is a platinum powerseller 😀
 
Originally posted by: CPA
If I was selling junk on Ebay that I had laying around the house and I did it frequently, I would defininetly list this as business income. The reason is that I would most likely sell the junk lower than what I bought it for and therefore show a loss on my taxes. That's just me though 😉
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Sounds like you've already been doing this 😉
 
Originally posted by: CPA
If I was selling junk on Ebay that I had laying around the house and I did it frequently, I would defininetly list this as business income. The reason is that I would most likely sell the junk lower than what I bought it for and therefore show a loss on my taxes. That's just me though 😉
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😀 Yep, me too.
 
I wouldn't want to be the first guy they make an example of when they can prove how much income he made on ebay, yet he failed to report it and pay taxes on it.
 
Originally posted by: DrPizza
I wouldn't want to be the first guy they make an example of when they can prove how much income he made on ebay, yet he failed to report it and pay taxes on it.
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And back taxes, and penalties, etc. That guy'll get reamed on his audit.
 
Originally posted by: DrPizza
I wouldn't want to be the first guy they make an example of when they can prove how much income he made on ebay, yet he failed to report it and pay taxes on it.
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Can I be that guy?!
 
Originally posted by: Skoorb
Originally posted by: DrPizza
I wouldn't want to be the first guy they make an example of when they can prove how much income he made on ebay, yet he failed to report it and pay taxes on it.
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Can I be that guy?!
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My dad actually called me this morning and told me about it.

He said that he saw it on the Today Show. Said that the IRS was going after the Powersellers with huge feedback ratings first, b/c that's the only way they can really track people so far...well since eBay doesn't divulge any seller sales information.
 
How many members does eBay have? Like 100+ Million? If the IRS is going to make any significant impact with taxing the millions who profit from eBay, Congress is going to have to update the laws to back them up. Right now they are too lax to really be taken seriously or enforced.
 
Uh its always has been this way. Anyone that has done several grand in business on Ebay should know this, and if they didnt I hope Uncle Sam doesnt come after you.
 
Originally posted by: dartworth
Do people file for garage sales and flea markets?
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Most don't, I would imagine because most garage sales are selling personal goods for losses. Flea markets I don't know as much about.
 
I can't blame the IRS really because ebay sales would be considered income. If they do enforce the rules, though, it does kind of beg the question - as others touched on - what could be used as a business expense and/or reported as losses. Seems as if it would create more tax loopholes for people as opposed to increased tax revenue for the government.
 
Originally posted by: jpeyton
How many members does eBay have? Like 100+ Million? If the IRS is going to make any significant impact with taxing the millions who profit from eBay, Congress is going to have to update the laws to back them up. Right now they are too lax to really be taken seriously or enforced.
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True, but the laws are written vague enough that the IRS can enforce.

The cost for one to fight it will easily exceed the original tax being imposed.

Once collections start due to audits, those people who are big movers will be more willing to declare income to avoid trouble.

 
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