Ebay tax reporting drops from $20,000 to $600

[BobC]

Originally Posted by Tyruscobb

The eBay baseball card buying and selling experience has gradually deteriorated, especially over the past few years. First, purchasing cards became more expensive when states began collecting sales taxes.

Second, the new required managed payment system has decreased sellers. I personally know a few small sellers that refused to give eBay their banking information and no longer sell their cards on it now.

Third, this new 1099 standard will push even more sellers out the door. I know sellers always should’ve reported their profits, but now big brother is really watching. This will scare some sellers off, and create headaches for others.

Fourth, at some point in the future, eBay plans on lowering the authentication amount to just $250.00. This will undoubtedly increase my wait time. The seller will have to ship the raw $250 card to the grader, it will probably sit at the grader’s place for a while, and then the grader will eventually mail it to me when it certifies the card is authentic. How long will this entire process take? Who wants to now wait two months to receive a raw $250 eBay card purchase? No thanks.

Brent, In response to your four points I think - yup, yup, yup and yup!

But don't forget cards are not the biggest and main thing sold on Ebay. This new reporting compliance effects all the Ebay sellers, and all the other sellers on all the other online sales venues and platforms out there as well. And since most people selling online use the third-party payment services like Paypal, Venmo, and Zelle to transact business, these sellers may still be reported for their sales, regardless of where they move to sell. All of which can see a resurgence and return back to shows and flea markets, and more people running cash businesses and using checks, which I'd actually enjoy seeing. (But then watch them start pushing that $600 reporting limit on personal bank account activity again as well.)

And don't think that everyone may start jumping to cryptocurrencies to try to get around these tax reporting rules. I believe enhanced 1099-B reporting requirements for cryptocurrency activity and transactions are already in place and slated to take effect in 2024 or 2025 (forget now).

Maybe we baby boomers aren't so dumb after all in not necessarily fully embracing all the new-fangled technology and other supposed advances in doing everything online. If I pay by cash or check, I don't have to worry as much about a credit card being hacked, or an online payment service being comprised. And if I can go to shows to actually see and examine what I'm thinking of buying, I don't need it in any damn TPG holder to tell me it is real, or what condition it is in. LOL