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

[Dandor]

Originally Posted by BobC

Ebay is only the platform for these sales, and the new 1099-K reporting threshold isn't being imposed on Ebay, just those third-party payment services like Paypal, Venmo, or Zelle. Only Ebay sales using payment services like these get included in 1099-K reporting, not sales using checks, MOs, or credit cards. It is all about the government having access to your records if they want/need to go checking you out. It wasn't suddenly saying anyone doing $600 or more in casual sales is now considered to be in a viable, ongoing business.

I agree with everything what you said, besides this paragraph. Some great information BTW with so much misinformation out there.

eBay has a mandatory managed payments program now. Nothing is fed through third-party payment services anymore. So, eBay will be sending out 1099-K forms through these new regulations.

[parkplace33]

Lots of talk about this subject.

Might I suggest that if you are worried about paying taxes on selling cards, the easiest thing is to not sell cards?

[Dandor]

Originally Posted by parkplace33

Lots of talk about this subject.

Might I suggest that if you are worried about paying taxes on selling cards, the easiest thing is to not sell cards?

I wish more people would trade! That is what I have been doing for the past six months. I buy or trade, nothing to worry about.

[BobC]

Originally Posted by Dandor

I wish more people would trade! That is what I have been doing for the past six months. I buy or trade, nothing to worry about.

Unfortunately, even if you just trade cards, you're still considered to have engaged in a reportable, taxable transaction per the Internal Revenue Code (IRC) and IRS rules. The IRS just hasn't figured out how to catch people doing and not reporting it yet.

And if you were thinking a trade isn't taxable under the old Like-Kind Exchange rules of IRC Section 1031, those only currently apply to real estate transactions, not cards.

[G1911]

Originally Posted by parkplace33

Lots of talk about this subject.

Might I suggest that if you are worried about paying taxes on selling cards, the easiest thing is to not sell cards?

REMOVED per policy.

[parkplace33]

Originally Posted by G1911

REMOVED per policy.

Sorry, not following. What policy?

[christopher.herman]

I am very grateful for all this tax information from our knowledgeable and experienced board members.

My personal takeaway is that I will not be selling anything online with a paper trail for the calendar year 2022. I will circle back to this thread in early 2023 when y'all got this figured out. I need less headaches and fighting with the IRS over the value of old and brittle card stock is not the hill I want to die on. My collection is a marathon....

My card buying will definitely be affected (and already has) if I'm not able to unload dupes, cards no longer of interest or cards that have appreciated significantly that I am willing to let go.

In the meantime (shameless plug coming), I am currently buying old and brittle W514 and W515-2 strip cards. Links to my needs lists in my signature.

[insidethewrapper]

The only difference I see in 2022 with the new tax law is that prices will increase by non-dealers ( non- businesses ). If you sold a product for $20 and you didn't pay taxes on it before ( you should have), so now raise the price to $ 23 and pay taxes on it and it won't be different from 2021 to 2022.

[BobC]

Originally Posted by Dandor

I agree with everything what you said, besides this paragraph. Some great information BTW with so much misinformation out there.

eBay has a mandatory managed payments program now. Nothing is fed through third-party payment services anymore. So, eBay will be sending out 1099-K forms through these new regulations.

Yes, I know. I already addressed and went into more detail about this back in Post #22 in this thread. I was originally speaking in more general terms about third-party payment platforms, and expanded what I had been saying to include Ebay's managed payment system as well in that later Post#22. Just goes to show how confusing and complicated this can all be.