eBay 1099 issues

[Snapolit1]

Regardless of your take on the government taxing card sales, or ebay collecting taxes mandated by the government, it seems to me that the spectre of receiving a 1099 at year end from Ebay has dramatically altered the market place for cards far beyond what I thought. Ken Goldin referenced people wanting to sell $15 cards at Goldin. Why do we see all these weekly and monthly sales packed with mediocre cards? I'd guess because many sellers are keeping off eBay. EBay for many sellers now is largely just grossly overpriced rarer cards and memorabilia, often with sky high prices. Not actually a well functioning marketplace at all. Half museum; half fantasy land. Looks to me like a lot of sellers have just thrown in the towel on eBay and taken their business elsewhere.

[BobbyStrawberry]

Definitely my feelings as well. I honestly get a little depressed when I look at ebay now, thinking about what it used to be.

[Snapolit1]

Originally Posted by BobbyStrawberry

Definitely my feelings as well. I honestly get a little depressed when I look at ebay now, thinking about what it used to be.

Yeah, I have my searches and once in a blue moon something I haven't seen before shows up. And very rarely does that new item not have an asking price that's multiples of what it would pull in a well run, reputable auction.

[BobbyStrawberry]

Originally Posted by Snapolit1

Yeah, I have my searches and once in a blue moon something I haven't seen before shows up. And very rarely does that new item not have an asking price that's multiples of what it would pull in a well run, reputable auction.

Exactly!!!

[perezfan]

There is a breaking point… If taxation become oppressive enough, people will go elsewhere. We are seeing it in the form of people fleeing “high tax” states as well. There is no doubt this is a major factor in the diminishing quality/quantity of goods eBay currently has to offer.

Sad to see it go this route, as eBay has become a complete waste of time.

[philliesfan]

The ebay fees and the IRS wanting 20% is a killer. I am not a economic major or have a lot of business knowledge so I could be off with this stuff but.....
If you paid $50.00 for something several years ago and do not have a receipt and you want fair market value of $100.00. So you sell it on ebay for $100.00, lose about 13.3% to fees ($15.44). Then the 1099 to the IRS and they want their 20% ($20.00). So after the Sale of $100.00 and less fees and taxes, you net $64.56. Not much of a profit (14.56) if you ask me. I know the sample I gave is peanuts to most everyone but it is a lot to me. But this is the way it goes so I will continue with ebay.

Some sellers may be inflating their prices to compensate for this.

[raulus]

Originally Posted by philliesfan

The ebay fees and the IRS wanting 20% is a killer. I am not a economic major or have a lot of business knowledge so I could be off with this stuff but.....
If you paid $50.00 for something several years ago and do not have a receipt and you want fair market value of $100.00. So you sell it on ebay for $100.00, lose about 13.3% to fees ($15.44). Then the 1099 to the IRS and they want their 20% ($20.00). So after the Sale of $100.00 and less fees and taxes, you net $64.56. Not much of a profit (14.56) if you ask me. I know the sample I gave is peanuts to most everyone but it is a lot to me. But this is the way it goes so I will continue with ebay.

Some sellers may be inflating their prices to compensate for this.

Two observations for you here:

1) You should still be able to recover your basis, assuming you have some documentation about your original cost. At $50, I would probably even be comfortable with a recollection of about when and about how much you spent. So based on your example, your gain net of your selling costs would be $35. If your tax rate is 20%, then your tax is $7 (i.e. 20% of your gain of $35, with your gain calculated net of your selling costs of $15).

2) The federal tax rate is actually 28% for collectibles. And sometimes you get to pay an extra 3.8% for the net investment income tax, if your income exceeds certain thresholds. Plus extra for the state, unless you live in a state with zero income tax. So an extra 10% for me here in Oregon, for a total tax rate on my collectibles gains of ~42%.

[parkplace33]

Originally Posted by Snapolit1

Yeah, I have my searches and once in a blue moon something I haven't seen before shows up. And very rarely does that new item not have an asking price that's multiples of what it would pull in a well run, reputable auction.

Steve, it is now a place to show off high priced cards and try to work deals elsewhere.

[Snapolit1]

Originally Posted by parkplace33

Steve, it is now a place to show off high priced cards and try to work deals elsewhere.

Think you are right. Recently I've seen in titles "Check out my website. . . ." which I can't believe eBay knowingly tolerates.

[Snowman]

Originally Posted by Snapolit1

Think you are right. Recently I've seen in titles "Check out my website. . . ." which I can't believe eBay knowingly tolerates.

They do not. Those sellers will be short lived

[Leon]

Originally Posted by Snapolit1

Think you are right. Recently I've seen in titles "Check out my website. . . ." which I can't believe eBay knowingly tolerates.

I still look at ebay a lot, but the key word is "look". It's certainly no where near what is was before Uncle Sam started taxing every sale AND sending 1099s. I see more and more off-ebay sales, which started there. Same with Paypal. I can't even take a G and S payment of any amount, or they want to send me a 1099. I think we should revolt and sign petitions to make a law where everything can only be taxed 1 time!!!
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