New ebay tax

There was a report out years ago about E-Bay and the IRS. Seems some people have decided to forego their brick and mortar store for the virtual one. The IRS became suddenly interested and was supposedly tracking sales... could make an audit very interesting.

Lee

I can see a rash of fake names, false identities, etc coming from this

Lee DeLaBarre Daytona62

Anytime that much money is changing hands, Uncle Sam wants a cut. That's why the IRS hates the barter system.

Sooner or later, the guv'ment will git their grubby hands on your money.

Hopefully, I'll be able to get, er sell my truck prior to then.

Did I ever mention that I hate the guv'ment?

JT

John Poulos wrote:

The way that this 67 year old sees it, the guv'ment would spend a million to collect $10 from you. Jail... Hey, 3 squares, all the TV you can watch and the benefits of rehab might be just fine!

JT

satdoc2 via CarKB.com wrote:

Anytime ANY money changes hands the government thinks it should get a cut, they make the old mobsters charging "protection" money seem generous.

Jeff DeWitt

Well, as least most of the politicos aren't carrying guns. They are scary, but in a different way.

But to look at it from the other side, if you're selling $100,000 worth of parts out of your brick & mortar store and having to declare any profits as income. If I start up a virtual store online (through E-Bay) and sell $100,000 worth of parts why should I be exempt from having to declare the profits as income? This isn't to hit the guy emptying out his attic or basement, it's to hit the guy who is running a business online.

Lee

..Well, as least most of the politicos aren't ...carrying guns. ..They are scary, but in a different way.

Oh yeah they have guns - they hire "police" to enforce their theft. And many of then are trying to confiscate all the guns they can from everybody that has them.

'For the children"' doncha know? To allow victims to "feel safer".

How about that Supreme court Kelo decision?

Government is NOT your friend unless you want more social programs.

Mark (getting bitter) Dunning

-- Message posted using

OK, found the proposed law and you need not worry about submitting your SS # to ebay quite yet:

"Internet auction sites will only be required to report customer revenue information if the customer does more than 100 separate transactions in a fiscal year and generates more than $5,000 in gross proceeds. In a report from the Information Reporting Program Advisory Committee (part of the IRS), the new proposal is supported by a 2005 study showing that over 700,000 Americans have a primary or secondary source of income through eBay."

Barry wrote:

True.... however, if you sold your Toyota pickup on e-Bay next year and it brought, say $15k, do you want uncle sam making your justify that 'income'?

Lee DeLaBarre Daytona62

Guess we just need to keep it to under 2 sales a week as long as it truly is an 100 sales AND $5k instead of 100 sales OR $5k

Lee DeLaBarre Daytona62

Yes. Paul Johnson

Well since I have a receipt saying I paid $22,000 for it in 2005 and about another $1000 in maintenance receipts I won't have to worry.

I went through a state audit a few months ago, if you have everything that they question there's no problem... other than pulling out a folder with my paperwork and submitting copies the whole process was painless. Now if I had fudged numbers, had no receipts, etc... I'd probably have ulcers by now.

Lee

Exactly

That "and" or "or" can be the difference between day 'n night.

Fortunately, I'm not subject to a lot of income tax these days...

JT

Lee wrote:

The way I read that statement says that you will be reported if you have both... 100 sales and $5000 in proceeds (so you can't average more than $50 sale). What this says to me is that you could have 10 transactions selling high end collectibles or automobiles and have $100,000 in proceeds or 40,000 sales selling 10 cent coupons with $4000 in proceeds and they wouldn't report you to the IRS. This doesn't make any sense, and I'm sure others writing this law will question it. But as I've said all along, it's my opinion that they are after the people running a business online and not the guy selling grandma's estate. Expect to see more low BIN prices and huge shipping charges... $1.00 vehicles with $20,000 shipping charges (no pick up available).

If I had to bet, I'd put money on them change the 100 sales AND $5000 proceeds to 100 sales OR $5000 proceeds. Or not even mentioning the number of sales... as taxable income, the IRS doesn't care if you work 1 job or 10 jobs, all they are interested in is your gross income.

Lee