Flat out done selling anything on Ebay or with PayPal
 

Sold an item over the weekend on Ebay and was paid immediately by the buyer,it was over the $600.00 threshold that the IRS wants reported to them. Ebay messages me my payment is frozen and will not go into my account until I send info for IRS form. This is not a scam it is real what is really sad is I was selling some stuff for a buddy of mine who is not on a computer and what you will potentially have to do to show you did not profit. At the end of the year you have to show you did not sell more than $20,000 worth so so much for even listing a car I was going to try to sell this spring.

Re: Flat out done selling anything on Ebay or with PayPal
 

For a number of years, any income, from one source, was supposed to be reported to the IRS at every annual tax filing.
The only change in the reporting rules is not from Paypal nor from eBay. It is from the US government. It was changed as a way to entice folks to be a bit more honest about their income.
I am not taking a stand one way or another. I am simply stating the facts.
You are welcome to claim deductions to offset your eBay sales.
Also, you can sell any amount... you are not limited to $20k.

Re: Flat out done selling anything on Ebay or with PayPal
 

I just think it is a crock to hold up money ($1,300) in limbo until I divulge full social security number to Ebay to give to IRS.I have bought and sold mainly bought on Ebay for 18 years and it was great but it and PayPal are done for me.

Re: Flat out done selling anything on Ebay or with PayPal
 

Perhap three payments of $433.33 are in order.

Re: Flat out done selling anything on Ebay or with PayPal
 

If the total per year goes beyond $600, the seller receives a 1099. It doesn't matter how many transactions have occurred.

Re: Flat out done selling anything on Ebay or with PayPal
 

Well, on the opposite side of the proverbial coin, eBay has quite clearly stated this rule change. So to blame eBay for your lack of either reading them or not understanding them seems to be misplaced.

Re: Flat out done selling anything on Ebay or with PayPal
 

I know what I'll say below won't impact things, since it's Ebay and PayPal. But you can use Zelle. It's just like PayPal, Venmo and others, but is exempt from the new reporting law since Zelle only facilitates transactions between institutions, it does not hold the money like PayPal, Venmo, etc.

Re: Flat out done selling anything on Ebay or with PayPal
 

I believe it stems from the gubmint tried to put the 600 dollar rule into one of the recent bills, it did not pass if I am correct, but Ebay seems to want to go that route anyway. Hmmm, do they know something we dont? I'm sure that soon facebook marketplace, etc, etc, will all follow

Re: Flat out done selling anything on Ebay or with PayPal
 

When the sale of an asset is considered a capital gain then the Internal Revenue Service wants to know about it so that they can tax the capital gains. Big Brother watches this stuff in more ways every year to make sure very little or nothing slips by. A person has to deal face to face and accept cash only to evade the tax man. If there are no middle men or financial institutions involved then Big Brother generally won't see it.

Most folks sell a collector car for less than they have invested in it but a person has to keep track of these investments to cover their back side. The very expensive collector cars can be an exception if a person purchases it in restored condition and resells it several years later for a profit. It's very hard to avoid the tax man on high dollar transactions.

Re: Flat out done selling anything on Ebay or with PayPal
 

ok so its inconvenient but at least you wont get a surprise visit by some worm from the IRS after you lodge your receipts

Re: Flat out done selling anything on Ebay or with PayPal
 

Scroom i will only do non on line. I owe them squat.

Re: Flat out done selling anything on Ebay or with PayPal
 

Well I am just not that good of a businessman and I must have missed Ebay's notification of the new law requirements.I too thought it was talked about but never passed,last thing I read was it would take thousands of new IRS accountants to keep track of millions of transactions.I havn't sold that much or even have much to sell,except if someone asked me to put something on for them,did it for free but made sure it wasn't costing me. Finally I probably thought the last few months if I did get a notification it was a scam to get my information. Even today my notification was an email that looked suspicious stating right off the bat my payment has been put on hold until you register and give your social security # One good thing about it I will be able to tell my old car buddy that I am out of the business,he usually was not happy about final value anyway.

Re: Flat out done selling anything on Ebay or with PayPal
 

I wouldn't be passing out my s.s. number, especially when requested by an email.

Re: Flat out done selling anything on Ebay or with PayPal
 

So, I suppose you could sell an opportunity to buy an item, for say $1. Then when you send the item (being a letter) to the buyer, included is an invoice for the actual amount. It would be a little more hassle, but a way around the problem.


I had planned to selling some of my stuff, but it won't be on eBay. Probably just at swap meets.

Re: Flat out done selling anything on Ebay or with PayPal
 

I love me a good ol' swap meet.

Re: Flat out done selling anything on Ebay or with PayPal
 

That a total per vendor/person. Not a total total. If each person you deal with has transactions less that 600.00, then nothing need be reported. In less it has changed, that was the rule when I was doing tax work.

Re: Flat out done selling anything on Ebay or with PayPal
 

I can see potentially more/larger vendors at swap meets.

Re: Flat out done selling anything on Ebay or with PayPal
 

Well, actually most of the big swap meets have been handing out tax forms to the vendors for many years now. Its just that most folks never filled them out

Re: Flat out done selling anything on Ebay or with PayPal
 

Anyone who rents a swap meet space at Hershey must provide a PA tax ID number to the meet organizers. You have to establish an account with the PA tax office to get an ID number. Once you are in the PA tax system, you have to report your income every six months and pay the sales tax. That said, I can well imagine that the meet organizers have no way to determine whether the ID number is legit and also do not provide any vendor info to the PA tax authorities. So, paying sales tax is basically an honor system for the vendors.

Re: Flat out done selling anything on Ebay or with PayPal
 

Can't believe what I'm reading.....I'll quote my hero...." most frightening thing you can ever hear, I'm from the gov't and I'm here to help you"
Charlie ny