As someone who does ebay as a hobby to get rid of the excess junk around my house this kills ebay for me. Who in the world has receipts for stuff they had laying around their house for the last 10 years? Im not making a profit just getting rid of excess stuff around my house for a loss on the original purchase price I shouldn't be paying tax again on it. The original limits were very fair i think this $600 threshold is nuts for the average person.
So many elder people make small sell on ebay, just get couple $$ profit from item. I see often these kind of people in Goodwill where they buy cheap items for $1-$2. Like 75 years old mother of our made: She sales on ebay and her sells usually $100 - $200 per month (usually she sale her personal items and personal items her family give her for sale) and it is some help for her so small SSN around $800. Now this lady will pay tax from this money to help Biden bring criminals to America. 🤬
You don’t have to pay taxes on those kinds of items. Just because you get one of these forms doesn’t make it a taxable sale. Watch some of marks other videos
After years of selling cards on eBay, instagram, Reddit, etc… this is the nail in that coffin. The government already takes 40% of my commissions on sales at my actual job, now they want a piece of my very small side income? Hell no.
@@chevytheplayer Trump screwed the middle class too, as did Obama and Bush prior. It’s all the same song just a different verse. The entire political system we use needs to be overhauled.
@@Snarkapotamus Look around the world - there are a ton of different systems. It’s above my pay grade to say which is the best, however our current system obviously isn’t working. When you have half the country versus the other half, no progress will ever be made. It’s a volleyball essentially… going from one side of the net to the other. Having more than 2 political parties ideally would be the answer and getting away from identity politics as a whole.
I'm done reselling on major platforms now. This kills Ebay, Etsy and all the others now. I'm done. All this is going to do is destroy small businesses and hurt poor and working class people.(which are practically the same thing now)
I agree with you. I am done. It's not just because I don't want to pay taxes it's that I enjoyed selling below the threshold so I didn't have to bother with keeping receipts and monitoring everything.
This is more proof the IRS needs to be abolished. The $600 threshold will kill side gigs and garage sales along with any other means to make extra cash.
@@TideasOfficial There was talk in the past about abolishing the IRS and replacing our current tax system with a simple flat tax at around 9% across all income brackets. Loopholes would be eliminated and the forms would be reduced to one page. Herman Cain introduced this in his 2012 presidential bid, and Senator Ted Cruz also mentioned a flat tax.
That is completely unconstitutional ! So let’s get this straight. You can just be selling your old things on eBay, NOT as a business, which is stuff you bought with already income taxed money and likely also paid sales tax on, and now they want to tax you again on it as INCOME ?! It’s not income ! It’s recovering a little of your losses !
@@Charles_Anthony but even garage sales require permits and to be reported, isn't that crazy. i recently learned that and i couldnt really wrap my head around it. i guess it's not reinforced much but ???
@@Ari_Madrid lol where tf do you live? My neighborhood has an agreed upon garage sale day. Every Sunday every street have 3+ garage sales. People go through each neighborhood to shop. No permit nada. You can have your garage sale another day but you'll have a lot less customers because everyone knows to come on Sunday
What do you consider wealthy? And what is "fair?" I am in the 1%, and my effective tax rate (after all deductions) is 42%. That is including state taxes. The vast majority of people in that 1% are wage earners who get taxed extremely high rates. The people who are able to work into sub 10 and 20% tax rates are a very small group. I am in full agreement loopholes should be gone, but it amazes me how many people believe I don't pay taxes because I am in the hated 1%.
Wealthy people have the wealth to avoid paying more taxes then they are legally obligated to pay. This has been set up to squeeze the regular person. The Wealthy will always have the means to avoid paying taxes.
@@NOLA-vv3sz what's your secret to success? I'd like to make it to the 1% some day also. Seems like working an honest job can only get you so far. Definitely not into the 1% club.
I cannot believe the tax changes for 2022..I am dumbfounded how the IRS expects to keep up with the oversight anyway..many of us pay enough tax and look to side hustles as a buffer to stay afloat😬
The IRS will simply state you owe X amount. The onus is on you to prove them wrong. You are not innocent in the eyes of the IRS - you are guilty and you have to prove innocence. Been through this twice and had favorable outcomes both times becaus the IRS is simply guessing I have found.
Our government is 100% corrupted. Founding fathers would not fathom the extents we are taxed. Bloodshed is only way to save freedom forever or it will be too late... unfortunately majority are in a trance
@@johannadam3183 Regular Citizens don't start wars, the power structure corrupt politicians and corporations do. But Regular Citizens damn sure finish wars, every single time. So if push comes to shove yeah i'd volunteer. And I also volunteered to join the US Navy at 17. Would never re-enlist today with our corrupt government and knowing what i know now. But my oath to the constitution stays for life.
Oh, there's going to be a lot of surprised sellers getting their mail in early February of 23! I don't know about the other platforms, but Ebay has hardly even mentioned this so far. Going to be a crazy good time for Accountants next year when the stuff hits the fan. With less sellers ( make no mistake, it will certainly reduce number of sellers to some extent ) ,on Ebay in 23, it might force Ebay to make their platform more seller friendly, as they sweat how to regain the lost business, lol.
@@noahcooper6979 Yes, in the past, Ebay would do that if you were approaching 200, & 20K, & they, ( or PayPal in prior years ) would also suspend your account, but it didn't necessarily mean you would get it the following year, unless you went over both figures. Now, if you are asked to fill that out, it's because you are approaching $600, which is almost everybody, & to some who have been selling for a while , it's going to be like oh I've seen this before, it's just in case I go over 20k, & 200 transactions. There are those who are still in denial of the change.
Actually eBay fought this and had a huge grassroots movement with a big letter writing campaign and a lot of participation. But to no avail. eBay will continue to be a huge mover and shaker in the online selling world. But the ma and Pa sellers will be gone. Hopefully this will prove to be so obtrusive that it will be reversed to some extent. The banks are also in an uproar due to cost of account monitoring and privacy infringement
@@cindyinnew Yes, the banks are also being targeted similarly down to $600 on monthly individual account deposits, & that's an even bigger concern. It's such a small amount, that's not even rent money, so I guess it might be a good idea for people to open up a handful of checking accounts over the course of the next year, in case that gets implemented as well, because there's no law that says you can't have multiple bank accounts. We can hope, but I'm not holding my breath on the IRS reversing course, or partial course, in the future.
Computers will just spit you out a bill. Eventually if you don't pay the bill they will come after you. Its up to you to go to the trouble to dispute the bill. Trust me, its going to get bad.
Agree. Can't wait to see the fallout. Very sad though, as many folks are hustling to put food on the table and already paying high tax. You have those who refuse to work, living off the government not paying any tax
Nice! Sell the iPhone you received as a gift and all of a sudden you’re a business. People don’t want the headache so whatever they can’t sell on Craigslist is going to be donated
The story is always the same: the government gives a little money to a few people and raises everyone's taxes. I've lived my whole life in Latin America where government welfare keeps people poor and countries broken, but I never expected to see the same welfarism here in the US 😪
@@porth4250 same tax with lower limit = more people paying tax = bigger collection call it what you like, but the government is taking more money from the citizens
Ugh you got that backwards. Welfare started in America after the Great Depression and spread throughout the world. As world leaders around the world saw how well it kept people enslave to the government for life.
I’m not a reseller, I’m just selling stuff I’d collected over the years to make space. This whole 1099K thing is terrifying. I’m not trying to make a business selling things or having it be my side hustle, I just want these collectibles out of my house!
I know some people will list things on FB marketplace and yes people do say "Cash only". I'm not saying you do not have to report that as "income" but one reason you see a lot of "cash only" things on FB marketplace is... it simplifies things. Also garage sales.
Yeah same problem I have. This is really disappointing as im not making a profit or running a business but who has receipts from stuff collected 10 years ago unless your trying to run a business? At some point the government needs to just stop looking for how much they can take from everyone and start cutting all the wasteful spending!
Just don't pay your taxes! Are they going to put everyone in prison? Federal income tax is not valid for 99% of americans. Read through the tax law before doing anything.
No new taxes on people making less than $400k lol. Now, I can't even sell my own personal crap at a loss without worrying about a scary and likely costly audit.
Inflation soaring, the value of the dollar is falling and the government LOWERS tax reporting limits. Only hurts the lower classes. Looks like I’ll find another way to work around this too
Been self-employed for years and deductions/depreciation are just part of the game...no biggie! That being said, it REALLY pays to have a tax strategy when you start actually making a profit.
@@kennethtran4706 - "It ain't bragging if you can do it" - Dizzy Dean And my advising you have a tax strategy is more helpful than anything you've added. It's the only way you're ever going to be truly successful at reselling...
@@Snarkapotamus Ive actually replied to other comment with useful info. IMO more useful than "have a tax strategy". That is too general. You pretty much saying in order to not have a tax problem is don't have a problem. This doesn't help most smaller resellers because we don't have deductions like a full time reseller. We don't have receipts because the game has changed while we were still playing by the old rules.
This doesn't just affect Paypal and Online Sellers...but even regular banking and large cash deposits. This is the epitome of Big Brother dipping their fingers into every aspect of your financial life. Looks like more people are going to be keeping safety deposit boxes just for cash or using their cash from sales to buy gift cards.
@@michellecd4722 It's honestly getting to that point. No safe deposit boxes aren't FDIC insured but it's better for some things especially in case of a flood or fire.
I would say if you're a small seller DON'T try to report a loss on Ebay because it makes you a lot more likely to be audited, so unless your books are almost perfect and you can prove every deduction, don't report a loss. I personally just deduct cost of goods, shipping/supplies and fees. That way I report a profit to help my taxable income be higher, but not by so much that I owe a lot in taxes. If you also overpay your taxes from your regular job that can help pay for the tax bill.
The IRS looks at individuals who report losses multiple years and asks, "if they keep losing money, why do they keep the business going?". They've got a point, it does look fishy.
You cannot take a loss on sale of personal items..a business that isn't profitable after few years becomes hobby in eyes of IRS..IRS won't audit small online sellers as there's no $$ to go after...
Thank you for the information. All I am doing is selling junk around my house that I have had for years and I have already paid taxes on the stuff once. I will not file a 1099k.the hell with the irs.
If your ebay income is $25,000, that is NOT profit. You had to pay something for the items that you sold! I’m just going to switch to cash transactions thru Craigslist or other tools.
Yep, thanks government for the relief efforts. we knew money was going to have to come from somewhere many where's. LOL. And just when I'm thinking of selling my huge toy collection over the next year too but guessing eBay is not going to be the place to do it now
This sucks! I mean I'm from MA and so I've been dealing with this change for a while now but to see everyone else now getting killed by this sucks. That covid money was not free it never was!
Such a low amount. Think of the millions of people who may sell their old iPhones on an online platform. They won’t be aware of the law change, and will get a surprise in the mail.
It's my understanding that selling items that you previously purchased would not be considered taxable. This only applies to income, such as from a service or product you provide.
been doing online sales full time for 6 yrs.. The way to offset these new tax laws in reinvest in the business, build an actual home office, start going to business related events . etc etc
I hope you are not that stupid. Stuff you sell on ebay was always taxable (if you make a profit), ebay just didn't send you and the irs a letter saying how much you sold for. If you didn't report it prior, you were evading taxes, and trust me, both parties want this. The process started under Trump.
This documentation has already existed for years... closing a loophole you've been taking advantage of doesn't mean it will continue. Also, Republicans and Trump increased taxes for next 8-10 years before he left office.
As an accountant, I have to say I haven't seen a panic like this since about 1986. There was much anger and many complaints then over a new tax law. It required most dependents to have social security numbers. By the time the law took effect a year or so later, a number of children had mysteriously gone to live with ex-spouses, or other relatives. The kids must have thrived in their new households, as they never returned. All the parents, most oddly, didn't seem to miss them. Except at tax time.
How does this affect people selling used items on eBay as an individual? Do we have to document that items were purchased new and then sold years later at a loss?
First of all shout out to Josh (Hairy Tornado) for dropping your channel in his video. I am so happy to find your content it is very helpful! I am a part time seller who did $20K in sales in 2021 and looking to increase that to $20-30k. I have been doing my own records and taxes however with what appears to be further scrutiny coming in 2022 would it be easier to apply for an EIN or is it best just to continue to do the schedule C and combine my full and part time income?
Nice. Love it. As a small business owner I pay so much in taxes already and it just keeps rising and rising.... but gotta figure a way to make it happen
So you want to say you don't use any of crazy amount of deductions that make your effective tax rate fall in range of 12-19%? you're doing your taxes wrong and whining about it on youtube?
@@yuriib5483 no not at all. I deduct a ton off. I'm not wining. I'm just saying as a small business owner with 1 other employee it's insane how much I pay
This was quite a valuable video, thanks for explaining everything so clearly. I have an expense question that I haven't seen answered anywhere and it's been keeping me from reselling a lot of things I bought at yard sales and flea markets for 20 years but I don't have any records about the cost to me of those items. What in this case should a reseller claim as cost of goods sold?
I'm planning a video on this soon! Bottom line is you'll need to estimate the original cost. Or if the current market value is lower than the estimated original cost you can use that, however the market value is so subjective...
@@notyourdadscpa So I guess this means for taxes, estimating the cost of each item when it's sold, in other words the accrual method. To answer the tax form questions about inventory value at the beginning and end of the year, must I go through everything I collected over 20 years and establish/record an estimated value for each item to start out? Or can I start with zero $ in inventory at the beginning of reselling year 1 and move some items from my personal collection into inventory each year as I list them to resell, and establish COGS and ending inventory for each year that way??
@@notyourdadscpa That's the best possible process I could imagine. That would result in a zero inventory value at the beginning and end of every year, neat and tidy! Thank you for your time and expert opinion. Am looking forward to watching your future videos (already watched all your previous titles) and to continuing to learn from you.
what do you do when you send your kids money for school etc. they will get a 1099K as well but are not a business and I am allowed to send up to $15K per year to them without reporting it. how will they be able to not pay taxers on it? I hate the government.
Translation - Govt: "The people need us! Let's make the little guy pay for it!" Little Guy: "Why not the rich? We're overtaxed!" Govt: "But that's us..."
Thankyou! We starting auctioning on whatnot this year. Were at a gross sales of about 25k. Were very confused and stressed about taxes this year. We didnt think we had to claim, but now were thinking otherwise
So if the I.R.S. wants to tax ebey do this. Buy something you are going to use say example 500 dollars. after a couple of years resell that item on ebay. Now keep your original receipt.. Since this is now a business you paid 500 and only got 150. So 350 dollars is a loss on your taxes as a business. A sloppy one.. That is the system they just legally created.. AWESOME!!! YEAH!!!!
Great video Mark! I would love to see more information for those of us who have not received 1099s in the past and just filed schedule c's. In 2023 when we get the 1099 how will we make our deductions? For example my husband and I both have full-time jobs and take a standard deduction so how would we then deduct for just reselling expenses. If that makes sense...
Business deductions are different from your standard or itemized deductions. You write off the expenses on your Sch C itself. The net profit or loss then is included in your adjusted gross income, and then your standard deduction reduces agi to get taxable income.
This question doesn't make sense. If you've been filing a schedule c then a 1099 is jist adding more income to your self employment. If you didn't have anything to write off it'd irrelevant to the 1099
Nothing is changing here. You file the schedule c as always. You don’t even list 1099ks on your return, your return is simply checked against the 1099ks the irs receives.
@@ItsDan123 You have to report the 1099’s exactly as received. What do you mean it’s only verified by the IRS? If she doesn’t report the 1099s…then she will be double reporting income.
Same here but with uber they will report your earnings to the IRS or send them a copy of your 1099-misc and they already know how much you made. I think with lyft they don't send a copy of your 1099-misc to the IRS you got to report that yourself. That what they told me
It is very FAIR. If you had wages or interest income then you would get a W2 or 1099 and report it. Why should resellers get away without paying taxes like everyone else?
THANK YOU! It's not just people selling a few things they make themselves anymore, even ETSY is full of "I bought a lot of this from AliBaba and am reselling it". One of my fellow ETSY sellers told me if it is sold on ETSY, they already take so much money out that you don't have to pay taxes. (she also was confused that ETSY takes out STATE taxes, and I had to explain that's not Federal taxes). It's money, if you had a relative give you a large check, you'd have to pay taxes on that also.
The vast majority of us pay a shitload of tax on our jobs already and our gas and our food and our sales tax and everything else keep licking that boot though I'm sure it taste good. Disregard the fact that healthcare food housing costs are exploding but God forbid anyone try to make a few extra dollars to survive I'm sure daddy government needs it so they can use it to change the weather.
This new tax code really negatively affects those people like myself who might sell way more than $600 per year in used personal use items, which are sold at a loss. Right now I don't know of any form to account for this as losses for personal use items do not offset gains. I suppose the IRS will make a new for this purpose? This is sad because now we'll have to itemize to the IRS every single item we owned, how much we paid for it, and how much we sold it for. Very invasive -- "oh I see he likes guns.. oh he sold an AR-15 at a $100 loss." And you have to keep the receipts for all items you buy to prove cost basis.
This is going to actually hurt the overall economy. Many small time resellers are just going to exit the game and there goes all that sales tax revenue, etc. This is a joke. $600 and 1 transaction. This is nuts.
I have been cleaning out the house and selling on Ebay items I have purchased at full price over the years. I am not a reseller but will get a 1099K because the items sold for >$600. How is that handled?
Yes, plz do a video on this. Selling your own items less than what originally paid but wouldn't have receipts. If over $600 total sales how do we handle. Thanks!!
I am so happy about this. Before I started reselling I consulted my accountant and have always been paying taxes and taking deductions. I always felt like I was at a disadvantage to people who didn't pay taxes because they could afford to sell items for a lower cost. I think this will level the playing field.
you are happy about more govt intrusion into your life? What is wrong with you, this will not level the playing field, it will eventually kill your business.
What a dummy, you did not need to consult your accountant. Just take your money and relax. Sounds like a goodie two shoes that made small money and got jealous everyone else made it large. No one sold their items for lower cost to save money on tax. I can almost guarantee that Kristie was NOT a successful seller at all
Taxes should ONLY be collected on profits only, not gross revenue. The government/IRS knows that 95%+ of casual sellers selling items that they acquired 10,15, 20+ years ago will not have kept receipts to prove original cost. Therefore, they will be wrongfully taking advantage of these people by taxing on gross revenues, not profits. This should be illegal.
I've been reporting my eBay income since I started in 2001. I get my deductions when I have my taxes done. I drive a lot so my milage claim is important. I also do scrap metal, born from parting out church and home organs, a big part of my eBay items so, I report that income as well. I get a print out of my scrap metal monies I get and includes each trip made. I no longer do eBay ( since being scammed by PayPal in Sept of 2019 ), after being scammed by PayPal on keeping fees even after a full refund, due to scammers from the Pacific rim trying to use PayPal policies against sellers by sending name and address info in foreign script. So now, it's just scrap metal. But, the timing of this realization that will hit in 2023 , and those who have purped this ...couldn't be better when election time comes.
If you think that the "other" party is going to treat you much better, I think you will be sadly mistaken. In the US, you are not a citizen, you are a worker, regardless who is in power. And in the EU it isn't much better. We aren't corporations, so we don't get to dictate the government.
@@mathisnotforthefaintofheart: You seriously forget what party came up with this nonsense. Here's a hint, the guy who signed this into law increased inflation and has dementia.
Indeed I'm from Massachusetts and back in 2017 on the announced to me they changed it to $600 threshold and I was hit with 1099k from selling books on Amazon..
The reduction is insane. How do they go from a $20K threshold down to only $600? I’ve had an eBay store for 20 years, just selling here and there, but I could hit the new threshold in just a couple months. $10K would make more sense.
If you have had an eBay store for 20 years then you know you should have been reporting your sales income for the last 20 years and claiming expenses and deductions if its not taxable income. What your saying is you have been using tax evasion for 20 years to make sure you didn't pay tax on any sales and now your mad they are closing the loophole. The best explanation i saw of this in the comments was "its like your upset the neighbors changed their wifi password after you were mooching off them for years" same concept. Time to do the bookwork. I have been on eBay since the early 2000's also, but i have been doing my taxes the entire time.
Good info and I still don't quite understand if the IRS is going to DING me this year. I only sell on eBay and for 2021 I had $4350 in Sales and only 138 transactions to date to make that. I guessing that for the tax year 2022 (*filing in 2023), I need to make this record keeping a habit, never did in the past as it was just a part-time side business. After profits, it paid for the eStore fees, inventory costs and some additional personal items (i.e. Vitamins, T-shirts, personal use stuff, etc.). You were recommended by the Josh/Hairy Tornado. If not for Covid, my yearly sales were much less. Odd. (I'm now a subscriber - Thx) I would love to up my sales going forward. ***** EDIT: I think I answered my own question as the NEW Theshold of $600 starts in 2022. And 2021 was still the higher number. *****
And how is the IRS going to know if a payment send / payment received is taxable? I borrow $500 from mom and pay her back in 4 hours. That's $1K in tax both of us pay? $200 each taxable income. Your guilty until proven innocent? I use Venmo and Zelle all the time. Every single transaction will be considered income until proven wrong to IRS. So everyone needs to walk around with a journal writing down notes 24-7? ....QUESTION..... the 1099K is sent to IRS next year. $4K on Venmo records. Mom sends me $400 a month for college expenses. Both of us screwed. Do i claim that or not claim if not income. If i claim it i have to be taxed. I don't claim it bam audit. Loose loose situation. Can't win...
No. This is only for business transactions. This is not anything new and is always been around specially if you are familiar with PayPal. Difference is friends and family vs goods and services.
@@mikeytek ---Duh. Everyone knows that good and services vs, family and friends. But the IRS doesn't now the difference. Every transaction is and will be business until proven otherwise. your already guilty.
I would like to say I would love to hear more on how to properly reconcile between the 1099 and your actual numbers. I believe eBay said that everything is included in that, including the sales tax collected and remitted on our behalf. I did my taxes last year, but I did not get a 1099 so I didn't have to worry about making sure it matched (or higher) because the IRS was never sent anything from my platforms.
As long as you've been keeping track of your own numbers I don't worry too much about reconciling to the 1099, but it is worth checking just to make sure that you don't report less than the 1099 as gross sales on your tax return. Then if necessary you can make the necessary deductions to bring your net sales back in line with your books.
As long as you don’t plan or ever making a lot do money you’ll be fine, if you do they’ll go back ten years deep and see where it started, they have all those 1099s sent directly from eBay/PayPal already Their just not going to start an audit on your records for $2000 or so but if that’s 4k next years and 20k the following they’ll be there with papers in hand asking why didn’t you report it before. But either way it’s not an Issue potential I’d think unless you started putting up serious numbers and weren’t reporting it.
@@Hashdollars Um, I did report it? lol I reported it regardless of the fact that I didn't get a 1099. Thought I made that clear but my apologies if I didn't. I was saying I didn't have a 1099 to match to for what I was reporting. So I was curious on the IRS' stance on matching your own numbers to a 1099, as I expect to get one in the future.
What about selling personal items around the house? My understanding is those are not considered taxable income. How do you prove it was personal and not something you bought for resale?? Thank you!
You never make money selling personal items around the house. It's like having a garage sale. Does anyone sell things at a garage sale for more than they originally paid for it? No. But keep in mind you can"t take a loss on the sale of a personal item either. So basically nothing gets reported in the situation you've described. I'm a 40 year CPA by the way.
@@earlgarcia2736 So how is it reported given that it triggers a 1099K? I assume you don't ignore 1099K's no matter what triggers them. So what IRS form is used to "report the old various personal property crap sold on Ebay like a virtual garage sale". Does IRS expect me the know the cost basis of Grandpa's 100 year old pocket watch, etc?
@@cottydry Exactly what I am wondering. I do not have receipts for items around my house I'm wanting to sell, such as.....my 15 year old expresso machine, a 20 year old tent, various camera bags, and down jackets. I paid retail for all of these, and for sure, I will be reselling these for less than what I paid for them. Can I estimate the cost?
@@earlgarcia2736 Hi Earl. I have about $1700 in sales since signing with Ebay's forced managed payments system. Being in a state that requires a 1099k form for 2021 at a lower threshold when I file what is the best method? I have no other income for the year 2021 sadly. I here and there sold personal and used items using the free Ebay listings (not a store). Is that considered self employment or do I attach the 1099 form and on schedule C put estimated amount of items and loss or capital gain? Thank you
Hey Mark, what if you transfer money between your different bank accounts via Zelle or similar platforms, and not selling or getting this money from sales. Simply transferring money between my own accounts. Will I need to pay taxes and report these transfers of money between my own accounts?
Hi. I am not a reseller yet and have no idea where to begin but I want to try. I am VA disabled. How would reselling affect my VA? And I found your video by accident and loved the simple straight forward explanation .
Informative video for online sellers. Really important question: if I purchased items this year that hasn’t sold do I claim it as a expense or carry it over to next year? Thank you Mark.
@@notyourdadscpa I sold items on 12/27/2021 on mercari, but got paid for them until 01/01/2022, does that count towards the new 2022 1099k or for 2021? Enjoy your videos! Have answered all my questions Happy new year!
@@maxsands3861 the explanation for his answer is that you’re handling inventory in a not officially allowed way. Inventory is meant to be tracked as an asset.
@@ItsDan123 and you can end up paying taxes on inventory asset two years running on items you already paid the year before which is why huge retailers and apparel makers have end of year clearance sales. In order to not pay taxes on the same items two years in a row.
@@Hashdollars those are property taxes yeah and I agree they’re among the more bs taxes, but they’re also done by the state and not all states have them.
Hi Mark! I sold items on 12/27/2021 on mercari, but got paid for them until 01/01/2022, does that count towards the new 2022 1099k or for 2021? Enjoy your videos! Have answered all my questions Happy new year!
This is awful! So what if I purchase something like a bicycle at a store use it for a few years and sell it for $650 on eBay. So I’m going to be taxed for something i’ve already been taxed on?
Tripled taxed. Taxed on the income u made to pay for it, taxed when u bought it, and now taxed when u sell it. All to fund absurdly rich politicians who stay in office their whole lives and terrorists groups around the world. Gotta love this country!
I don't use Ebay (anymore). Looking ahead, I see a big future for bartering. Like in the old days before legal tender came around. I think ultimately we are going back to those days...
In a way I'm glad their going after some of these hardcore sellers, Every time I would go into goodwill to shop or take a look around, these resellers would jump the bins and knock me to the floor to try and get the collectible goods that they can resell on eBay
Excellent presentation. Wish I kept receipts for all the junk I'm getting out of my life... Im only in my mid 30s, but I have a lifetime of stuff to hock. This is a nightmare. Period.
Great video! Thanks so much for making it easy to understand. Since I've seen the question a couple times in the comments, specific to eBay Managed Payments only - sales tax that is collected and remitted by eBay as a marketplace facilitator is *not* included in the 1099K for sales that go through Managed Payments. Sales tax collected and remitted by the seller directly *is* included in the 1099K. Because of the way Managed Payments is structured, eBay collected tax is not actually paid to the seller, so they don't include it. That only applies for payments processed through Managed Payments, sellers who were still using PayPal through any part of 2021 will have eBay collected tax on the 1099K from PayPal because in that case the tax amount is first paid to the seller then deducted back out to eBay to remit to the state.
eBay is including the sales tax as part of revenue along with shipping & what the buyer paid because you can see the breakdown. I didn't sell much so it will be easy for me to tell.
@@michellecd4722 eBay does include sales tax in the order total for calculating final value fees. They also include it in certain payment reports for that reason and for informational purposes. However, they do *not* include eBay collected sales tax in the figures for the 1099-K form for sellers in Managed Payments. Excerpt from the official eBay help page about 1099-K 👇 "Additionally, Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay."
