Selling stuff under the new $600 max law

Sonikku

Lifer
Jun 23, 2005
15,749
4,558
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I've heard that a law was passed last year that makes it so that Ebay, craigslist and others now report your sales if you sell over $600 in a calender year. Does anyone that does online sales have any insight into it? I've been wanting to offload an old 1080ti I've had but am on SSI and am wary of becoming caught in the web of all these new restrictions.
 

Tweak155

Lifer
Sep 23, 2003
11,447
262
126
It's true. But, you can either 1 - keep proof you paid more for it when you bought it, thus the entire sale is not taxable come tax time. Or 2 - Sell through cash method, including PP F&F.
 

Sonikku

Lifer
Jun 23, 2005
15,749
4,558
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Would paypal be flagged though if the transfer is a transaction rather than a gift?
 

pauldun170

Diamond Member
Sep 26, 2011
9,133
5,072
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I've heard that a law was passed last year that makes it so that Ebay, craigslist and others now report your sales if you sell over $600 in a calender year. Does anyone that does online sales have any insight into it? I've been wanting to offload an old 1080ti I've had but am on SSI and am wary of becoming caught in the web of all these new restrictions.

Hasn't this been the norm for years?
There aren't any restrictions. Sell the card

.
 

Iron Woode

Elite Member
Super Moderator
Oct 10, 1999
30,854
12,353
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I've heard that a law was passed last year that makes it so that Ebay, craigslist and others now report your sales if you sell over $600 in a calender year. Does anyone that does online sales have any insight into it? I've been wanting to offload an old 1080ti I've had but am on SSI and am wary of becoming caught in the web of all these new restrictions.
personally, I would sell it local. Less chance of something going wrong compared with EBAY.
 

deadlyapp

Diamond Member
Apr 25, 2004
6,582
698
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Hasn't this been the norm for years?
There aren't any restrictions. Sell the card

.
Yes, however they are now sending 1099 to users and reporting it to the IRS. For small users, it shouldn't make any real impact on taxable income and if it does you can report the cost of the item when you file taxes and should have no issues.
 
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pete6032

Diamond Member
Dec 3, 2010
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Craigslist cannot track this. They don't know whether you sold an item listed on their site and they don't know the sales price, unlike eBay.
 

NutBucket

Lifer
Aug 30, 2000
27,033
545
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Maintenance of my yacht contributes to the economy...all those guys scrubbing the decks need a paycheck too!
 

dullard

Elite Member
May 21, 2001
24,998
3,326
126
This is not a tax change; It is a tax reporting change. Meaning the total amount of tax you legally owe does not change with this at all. You might, at most, get one more form to file with your taxes.

But the real key is what profit are you making with this sale? Only profits are taxed.
 

Sonikku

Lifer
Jun 23, 2005
15,749
4,558
136
Selling locally is of course my first choice, but I live in a small hick town where the best offer I've gotten is a laughable $120 when it goes for $400-500 on Ebay.
Hasn't this been the norm for years?
There aren't any restrictions. Sell the card

.
But the thing is Ebay reports it all now starting this year. And I'm concerned that if I sell it that SSI will simply deduct nearly the entirety of the sale from my next stipend.
 

deadlyapp

Diamond Member
Apr 25, 2004
6,582
698
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Selling locally is of course my first choice, but I live in a small hick town where the best offer I've gotten is a laughable $120 when it goes for $400-500 on Ebay.
But the thing is Ebay reports it all now starting this year. And I'm concerned that if I sell it that SSI will simply deduct nearly the entirety of the sale from my next stipend.
That's not how it works. You still likely file some type of income tax form at the end of the year to report your SS income (even if it is little enough to not make you taxable) and this would just go in as income that would be taxed at some percentage for your federal withholding. However if your income is that low you probably have an effective tax rate of zero so this has zero effect on you
 

Torn Mind

Lifer
Nov 25, 2012
11,567
2,626
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That's not how it works. You still likely file some type of income tax form at the end of the year to report your SS income (even if it is little enough to not make you taxable) and this would just go in as income that would be taxed at some percentage for your federal withholding. However if your income is that low you probably have an effective tax rate of zero so this has zero effect on you
SSI is far more touchy than social security retirement, disability, etc.


Principal unearned income exclusions

  • The first $20 per month
  • Income set aside or being used to pursue a plan for achieving self-support by a disabled or blind individual
  • State or local assistance based on need that is wholly funded by the state or local area in the state
  • Rent subsidies under HUD programs and the value of supplemental nutrition assistance (formerly referred to as food stamps)
  • The first $60 of infrequent or irregularly received income in a quarter


Principal earned income exclusions

  • The first $65 per month and any unused portion of the $20 unearned income exclusion, plus one-half of the remainder
  • Impairment-related work expenses of the disabled and work expenses of the blind
  • Income set aside or being used to pursue a plan for achieving self-support by a disabled or blind individual
  • The first $30 of infrequent or irregularly received income in a quarter


For more information about SSI payment computations and the treatment of income, see "Understanding SSI Income".
 

Shmee

Memory & Storage, Graphics Cards Mod Elite Member
Super Moderator
Sep 13, 2008
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Would selling/trading it for some form of crypto help?
 

pete6032

Diamond Member
Dec 3, 2010
7,443
3,004
136
Would selling/trading it for some form of crypto help?
Unless OP is selling stuff for profit it won't matter. If you buy a new computer monitor for $250 and sell it for $100 three years later you don't count that as income.
 

bononos

Diamond Member
Aug 21, 2011
3,883
142
106
Going after the little guy again. Meanwhile oligarchs are deducting yacht maintenance or whatever.
Thats because the IRS has been underfunded for a while and even got their budget reduced, so they don't have the resources to go up against large corporations with fleets of lawyers and accountants.
 

dullard

Elite Member
May 21, 2001
24,998
3,326
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SSI is far more touchy than social security retirement, disability, etc.
Both of your quoted bolded portions include an important word "income". If there is no income, there is no impact on SSI. Selling used things very rarely generates income since used things usually go down in value. A graphics card right now is one of the few used things that could generate a profit. But the simple solution is to just sell it for no more than what it was purchased for. Thus: no income and no SSI impact.
 
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Torn Mind

Lifer
Nov 25, 2012
11,567
2,626
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Both of your quoted bolded portions include an important word "income". If there is no income, there is no impact on SSI. Selling used things very rarely generates income since used things usually go down in value. A graphics card right now is one of the few used things that could generate a profit. But the simple solution is to just sell it for no more than what it was purchased for. Thus: no income and no SSI impact.
So, if he kept the receipts or has some other proof of value, he's supposed to be in the clear. But I still can see a scenario in which some antique would cause an issue. But yeah, if he got the receipts, he just has to do more paperwork.

.

Sometimes the government makes trouble anyway. They come around and reduced my mom's checks(retirement) by a dollar, even for just switching from paper checks to direct deposit.

In general, if a vested party has an interest in preserving their stash of money or some other action they prefer doing(such as cops not investigating shit), they'll claw for any tidbit to justify taking a cut.