Save all your receipts! Biden's garage sales tax kicks in next year.

[positivedoppler]

eBay CEO: ‘I supported the American Rescue Plan–but a little-known provision will hurt millions of Americans who buy and sell used goods online’

If Congress doesn't act, millions of casual sellers could find themselves in trouble with the IRS, says eBay CEO Jamie Iannone.

finance.yahoo.com

Starting next year, ebay and facebook market will send you a 1099 when you sale over $600 for a given year. So don't throw away your receipts or start retreiving them from your trash bin/can. That $2,000 gaming machine you built 2 years ago will be a tax liability if you sale it on the use market for over $600. You'll need those receipts to prove to the IRS you sold it for less than the purchase price to avoid a tax bill. A little extra work for those who like to trade used goods but a small price to pay as Biden goes after those billionaires.

 

[Zorba]

Unless you process the payment through facebook, how could they provide you a 1099? They'd have no idea what you actually sold it for.

 

[nickqt]

I better vote for a treasonous fascist shitbag because Brandon's IRS is going to really start usurping my freedoms to avoid paying taxes.

 

[brycejones]

What a shit thread title

 

[positivedoppler]

What a shit thread title

projecting there?

 

[Perknose]

projecting there?

For a doppler you're not very positive at all.

 

[brycejones]

projecting there?

Nope, but your title is dishonest.

 

[akugami]

Misleading thread title.

Biden has zero idea what the hell you made on a garage sale. I've never seen a garage sale transaction reported to Biden, or the IRS.

As far as people complaining about the reporting threshold, I do agree that $600 is a tad on the low side, and should be somewhere around $2000 to $2500, but $20k was ridiculously high. I'd also say that the CEO of eBay isn't exactly a non-biased party here.

This will not affect the majority of Americans. This will affect those who regularly sell on eBay.

 

[ivwshane]

Gotta love the poor ceo whose marketplace charges outrageous fees to use is concerned about the poor American trying to make ends meet. Give me a fucking break.

 

[GodisanAtheist]

Does this mean I'll get shit for cheaper on eBay (cause small time sellers will try and keep their income below $600).

 

[KMFJD]

oh no, the horror

 

[feralkid]

Better vote Stinky!

 

[repoman0]

Massachusetts put the $600 threshold for 1099s in place years ago, so I have actually filed my garage sale money in federal tax returns. You don’t have to attach your receipts lol, just report what’s shown in the eBay 1099 as something like “garage sale items sold for loss” in a specific place that I can’t recall where it doesn’t contribute to your income.

Then if they audit you maybe you prove it, but they won’t audit you for a few thousand in ebay sales.

edit: as a secondary public service that this rule provides, I no longer sell on eBay and life is better for it.

 

[jmagg]

Seems like taxing the sale of used goods would be the third time the money is taxed

 

[brycejones]

Seems like taxing the sale of used goods would be the third time the money is taxed

1. It is not a sales tax.
2. Any tax if owed is income tax and is only owed if the sales price exceeds what the seller paid for the item originally. In other words you are only taxed on profits which is income and therefore nothing new or novel.

 

[akugami]

1. It is not a sales tax.
2. Any tax if owed is income tax and is only owed if the sales price exceeds what the seller paid for the item originally. In other words you are only taxed on profits which is income and therefore nothing new or novel.

This is exactly what the tax they're complaining about is. It is income tax.

For most people that this affects, most likely they're selling as a personal sale, and do not have a business license to sell. I'm not tax accountant, so someone may correct me if I'm wrong, but this would be taxed as personal income.

 

[brycejones]

This is exactly what the tax they're complaining about is. It is income tax.

For most people that this affects, most likely they're selling as a personal sale, and do not have a business license to sell. I'm not tax accountant, so someone may correct me if I'm wrong, but this would be taxed as personal income.

Correct any profits would be taxed as personal income.

 

[GodisanAtheist]

Yeah I'm not all aboard the "tax all the things" train here.

A $600 used item sale on eBay should not be taxed. If it's a new sale then *maybe* but the cap shouldn't be so low.

The idea that a person will be taxed for income on goods that they presumably have purchased with income that has already been taxed is a bit much.

It really feeds into the idea that Dems/Liberals want to take the little guy's money.

 

[brycejones]

Yeah I'm not all aboard the "tax all the things" train here.

A $600 used item sale on eBay should not be taxed. If it's a new sale then *maybe* but the cap shouldn't be so low.

The idea that a person will be taxed for income on goods that they presumably have purchased with income that has already been taxed is a bit much.

It really feeds into the idea that Dems/Liberals want to take the little guy's money.

Uh……..good news!

THE TAX ONLY APPLIES TO PROFITS MADE ON THE SALE!

$2000 computer resold for $600 NO TAX!
$600 computer resold to an idiot for $2000? Income tax would apply to the $1400 profit.

It’s literally a tax on new income and therefor not double or triple taxation as has been alleged in this thread.

 

[fskimospy]

This thread is funny because it shows who doesn’t know how taxes work. It’s similar to those people who say getting a raise is bad because it puts you in a higher tax bracket.

Well done, @positivedoppler

 

[GodisanAtheist]

Uh……..good news!

THE TAX ONLY APPLIES TO PROFITS MADE ON THE SALE!

$2000 computer resold for $600 NO TAX!
$600 computer resold to an idiot for $2000? Income tax would apply to the $1400 profit.

It’s literally a tax on new income and therefor not double or triple taxation as has been alleged in this thread.

-How is the IRS going to know that?

 

[fskimospy]

-How is the IRS going to know that?

They wouldn’t. Just in the case of an audit you would need to show the original purchase price.

Guys. This applies to people who make their living through running eBay stores, and it’s right that they shouldn’t be magically exempt from taxation and should play by the rules of any other store. No one should oppose this.

 

[repoman0]

-How is the IRS going to know that?

You self report, as I pointed out above. And the IRS isn’t auditing regular people who sell a few thousand bucks worth of used crap on ebay.

 

[GodisanAtheist]

They wouldn’t. Just in the case of an audit you would need to show the original purchase price.

Guys. This applies to people who make their living through running eBay stores, and it’s right that they shouldn’t be magically exempt from taxation and should play by the rules of any other store. No one should oppose this.

-That doesn't seem onerous to you? Who the hell keeps a receipt of things they've bought, sometimes years ago, especially small time sellers?

If it's a licensed business running an eBay shop then it should specify licensed business (if the law says this than my ire drops considerably). If it's some cottage industry shit or someone just trying to move on their old crap (that might have appreciated in value) leave em alone.

 

[fskimospy]

-That doesn't seem onerous to you? Who the hell keeps a receipt of things they've bought, sometimes years ago, especially small time sellers?

If it's a licensed business running an eBay shop then it should specify licensed business (if the law says this than my ire drops considerably). If it's some cottage industry shit or someone just trying to move on their old crap (that might have appreciated in value) leave em alone.

No it’s not onerous and you wouldn’t need a receipt, only a reasonable approximation of the cost.

This is such a total non-issue.