Changes For eBay and Other Sellers on Third Party Platforms Are Coming

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launderess

launderess

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Don't know if this is proper forum, if incorrect webmaster please feel free to move...

While on eBay earlier was reading up on sellers forum and found an item causing all sorts of heck to break lose.

Apparently as part of last stimulus bill democrats inserted changes to tax code so offset funding could be found to pay for the thing.

https://runningwithmiles.boardingarea.com/paypal-payment-network-reporting-stimulus-bill/

Starting in 2022 all third party platforms like eBay, AirBnB, Uber, etc.. will be required to issue 1099-K forms reporting transactions of $600 or more for year. This is a change from previous generous processing more than $20,000 and 200 transactions in a year.

Anyone considering selling on things might want to get it done before 31 December 2021....

Mind you a 1099-K only reports things to IRS, there isn't any law or anything that requires one reconcile one's taxes to match what is reported. But as with anything else once IRS is aware of something it might be a good idea to have one's affairs in order (such as records) in case there are questions.
 
Another thing

Ebay now requires those opening a new account to give SSN. For those with older accounts lacking that information one assumes things will go same as PayPal a few years ago; supply required information or have account terminated. Well maybe at least only for selling...

FB and the rest will be doing same. Since CL isn't a third party provider (you can't pay for things though CL), this doesn't cover themselves or others similar.
 
CL will be making a comeback

I hope so, I just sold something on CL that would have been listed on Ebay if they didn't require a linked bank account, or so I'm told.

Anyway, the CL sale went fine and I got about the same $ I would have after Ebay fees.

I don't know why people bitch about CL, I've never had an issue buying or selling.
 
 

<span style="font-family: helvetica;">I, too, like CL but in my opinion the bitching is more around the safeguards you get with eBay vs. CL.  I have been buying/selling on eBay since 1999 and have had pretty good luck but on the few occasions something went wrong eBay resolved whatever the issue was.  I don't think you get that with CL unless I missed something.</span>

 

<span style="font-family: helvetica;">I will use CL for any transaction I can do locally but I won't if shipping is involved because if I send the money and the seller doesn't send the product I'm pretty much screwed.  That is not the case with eBay at least in my experience.</span>
 
Local selling is fine for many things, but sometimes one wants or needs a larger marketplace.

Admittingly crimes associated with CL or any other local in person only listings make up a small fraction, that is little cold comfort.

https://www.nbcphiladelphia.com/news/local/craigslist-killing-coffee-cook-atv-ad/60519/

https://www.dailydot.com/unclick/craigslist-ad-atv-murder-shooting/

www.nbc12.com

Man found dead after plans to buy ATV from Facebook Marketplace

Kyle Craig, of Ocean Springs, Mississippi, was found dead after planning to meet up with a seller from Facebook Marketplace to purchase a four-wheeler.
www.nbc12.com www.nbc12.com
 
Everyone needs to pay their fair share of taxes. Lots of people make substantial profits off of their Ebay sales. Frankly, the issuance of a 1099 for sales of $600.00 or more annually seems fair. The fact that the prior limit before a 1099 was issued was $20,000.00 is outrageous. In what world is it fair for someone to earn $20,000.00 and not pay taxes on that income?

If you are a big seller on Ebay you should be keeping accurate records of your profits and losses and be prepared to pay tax on the profits. The salaried employee can’t skirt paying tax on their income, the taxes are automatically withheld from their paychecks. Fair is fair. And if Ebay or any other seller intermediary is issuing these 1099’s you can be sure that this info is being shared with the IRS. Forewarned is forearmed.

I’m surprised that this wasn’t done before. One reason that I’ve never bothered to sell anything on Ebay is because I didn’t want the hassle of keeping records of the profits and losses of any sales and have to report them on my taxes. Seems like more bother than it would be worth for a few sales. But for those that make a business of selling on Ebay, then it only seems right for them to keep these records of profits and losses and pay the taxes on the income. Business is business.

And re: reply#6 I agree with you Ralph, Ebay is very good about stepping in and making right sales that have gone wrong for one reason or another. I’ve been very pleased with Ebay since ‘05.

Eddie
 
Most online shopping I do is through eBay and rarely have I had any issue. I don't think I've even left negative feedback. And eBay has now started to charge sales tax on all purchases in the last few weeks or so I have noticed, whether it's in the same state as seller or not.
 
 
Sales tax is charged based on the physical address of the buyer.  I'm outside the local city limits / tax jurisdiction so my eBay purchases are charged sales tax for the state and county jurisdictions.
 
How would this work for FB?

Every FB marketplace purchase I make is in cash and never sent through FB or anything like that. Seems pretty easy to get around the taxes in that instance and I’m sure people will just continue to do that. Also when I bought something new I paid the taxes on it, why pay taxes again when I re-sell it?! Seems like double dipping to me. I agree if your a company doing it professionally but for the average person selling stuff here and there the government can keep out of in my opinion. I’m normally pretty progressive but taxing garage sale items is over the line for me.
-Shannon
 
Also when I bought something new I paid the taxes on it, why pay taxes again when I re-sell it?! Seems like double dipping to me.

It's double dipping. I can see Ebay taxing new items from a company/distributor but used, and especially vintage/antique items where taxes were paid at least once, makes no sense other than gouging.

 

I have a bunch of vintage audio equipment I've been lazy about selling and these new changes just lit a fire under my ass to move them out by the end of this year. I've dealt with selling things on CL and it rarely goes smooth. Too many deadbeats out there. I've never subscribed to social media of Myspace, Facebook, Twitter, and whatever else is out there and that will firmly remain in effect.
 
selling things on CL and it rarely goes smooth

I use CL for local sales on stuff too heavy or expensive to ship, strictly cash and carry.

Deadbeats or tire kickers can be quickly weeded out through e-mail or a quick phone call, if they are flaky I don't do business with them.

Miscellaneous items always got listed on Ebay until now.
 
Safe Exchange Zones

 

<span style="font-family: helvetica;">Do any of you have or use safe zones for making Internet sales?  Our police dept. is about 2 miles from the house.  They have a safe zone there that is camera monitored 24X7.  If you want, they will send out an officer to supervise the sale.  I'm not comfortable having people at my house so this helps to ease some of the concern I have over these types of sales.  If you don't know, ask your local police dept.  They might just allow you to come to their facility to make the exchange.</span>
 
I know some of the companies that organize estate sales and moving sales here charge sales tax.

I've never sold anything on eBay as it's just too much hassle to me to pack and ship things.

Rarely I've bought things from the classifieds in the newspaper, when I was a kid we used to buy and sell things that way all the time. Never had anything weird happen, but if I was selling something I'd prefer to do it in a public location. So I haven't bought or sold anything on Craigslist or Facebook Marketplace.
 
they will send out an officer to supervise the sale.

I've never had problem with people coming to my house but I'm probably selling items that appeal to a better class of people.

A friend of mine sells a lot on Facebook, never heard any complaints from him either.

However, I want a phone call before I give out my address, you can tell a lot about a person very quickly with a brief conversation.

As a matter of fact buyers often request that I call them, (honest buyers don't want to get ripped off or waste their time with flaky sellers either).
 

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