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Originally Posted by JustinD
I was thinking the same that eBay will lose the most and the small sellers will get pushed out by overbearing tax laws. Pretty soon they will have a tax hotline for reporting your neighbors yard sale so the IRS can audit someone cleaning their basement.
I expect prices to go up and sales to go down which will boost IP and sales on Facebook or chat forums like the BST. Who knows? We may see a renaissance of collector shows.
PWCC has been so successful as they do not report via 1099 on any sales like other houses, this could be a blazing for them.
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First off, the tax laws themselves aren't changing. Most people were supposed to be reporting such activity on their returns all along.
See my previous post in regards to your comment about reporting people's garage sales.
Regarding price changes, I think it might be people looking more for different options and venues to sell on/through to get around these lowering reporting thresholds, than for people to raise prices to help cover taxes maybe now owed. No one's going to want to pay higher prices, and they'll go looking for those lower price options, like at card shows that could be seeing a huge resurgence as we get past these covid restrictions more and more. But remember, they were also trying to impose a new $600 reporting threshold on personal bank account activity as well, but that got pushed back up to I believe $10,000. But you watch, if everyone starts trying to do more cash deals to not have to report that activity for tax purposes, just see how fast they may look to revisit that $600 reporting threshold for personal bank accounts. And I won't even start about cops and these "asset forfeiture" laws.
And lastly, I don't get your comment regarding PWCC having an advantage over other houses (I'm assuming you meant other auction houses) by not having to issue 1099s to their consignors on sales. Technically, no one issues 1099s for sales of tangible property, they are issued for services. And PWCC doesn't buy anything from, or get any service provided by, their consignors to be sending them a 1099 for. If anyone would be required to be sending 1099s to PWCC's, or any auction house's, consignors for sales of tangible personal property, it would be the people that won the auctions. In truth and fact, if anyone should possibly be receiving a 1099, it would be PWCC (and all other AHs) from their consignors for the fees/commissions they charge for providing their auction/consignment services. Your thinking on this point is entirely bass ackwards.