eBay sellers, the IRS is coming after you.....

[JeffSpicoli 1531]

I'm sure many saw this story - the IRS and the new agents are coming after eBay, Etsy and other online sellers.

In the short, the 2024 rules are - anything above $5000 must be filed as income.

In 2025, anyone selling $600 or more must file it as income.

What is most insane about this - is if you decide to clean out your house or sell things you don't use anymore, if you break these thresholds - the US government considers it income.

Never mind the fact that you:   1. Paid income tax on the money you used to originally buy the items.   2. Then you paid sales tax when you purchased.   And now you will pay a 3rd tax when you sell over $600.

This is beside the fact that I still think the government charging sales tax online is a scam as well.   

I had about $8000 worth of stuff on eBay last week, 2 sets of wheels for cars, a underwater camera housing, a suspension, and some other stuff.  

Listen, if you are an online retailer, and your core job is selling online, fine.   But if you are cleaning out your house, you have a regular job, and you sell on eBay, that's not income.    Well, it is starting this year and next.

My reaction is simple - I will no longer sell on eBay or I'll sell til I get to $601 and make the IRS do "paperwork" or accounting over a $1.   I'll stick to online classifieds.  I refuse to pay income tax on money and possessions that were taxed already.  

It's bad enough eBay's fees have gotten out of control.   I sold a $650 laptop the other night and paid $97 in fees.

 

end rant! 

https://abc7news.com/amazon-ebay-etsy-third-party-sellers/12926032/

[Re-Bugged 12040]

All the fun of everything being online and traceable I guess.

In a similar vein the Australian government has caught up a bit to. Not quite as severe, but buying bits from overseas sellers using PayPal attracts 10% GST, it now also now picks it up if you buy directly from their website shops.

I don’t mind paying my way as it’s supposed to keep the cash flow in your own country, but when it’s for stuff you simply can’t get in your own country it doesn’t help anyone but the tax collector. Just the way it is.

I suppose FB will be next on the hit list.

 

[tamiya_1971 733]

They have talked about the above $600 tax for a couple years now. I’m hoping they keep kicking the can down the road. Being taxed on a box of ****ty used parts is a bit frustrating considering it was already taxed once. 

[Alex97 589]

I'm at about £9.5k on eBay this year, I'm expecting a you owe us letter at some point. 

[Kpowell911 2628]

22 minutes ago, Alex97 said:

I'm at about £9.5k on eBay this year, I'm expecting a you owe us letter at some point. 

Is it profit though?

[Alex97 589]

3 hours ago, Kpowell911 said:

Is it profit though?

So that £9.5km is a mix of new and used items, mainly new items tho. £9.5k is the total sale price, after that I need to deduct fees, shipping and VAT where applicable. £2.5k+ would easily be fees and postage. 

 

In terms of profit I could give a ball part figure however it would be a ball park, unless they ask I'll be keeping quite. 

[Kowalski86 5013]

I'm not a huge fan of this myself, partly because anyone running a business is already taxed on whatever supply they purchase, whoever buys from them is being taxed, and because it effects people like me who just want to clean out the house and get a few bucks back.