What a racket eBay is

[honyock]

So I have not sold through eBay in a long while, but apparently they have set up a managed payment instead of direct pay from the buyer to seller. So now I need to wait a significant amount of time after I have already shipped the package and it will be delivered for about 2 weeks before my payment posts per their estimate on my eBay.

So now it is just one fee instead of PayPal or whomever taking their cut and the final value fee cut, whatever, fine. However, they are also charging that same fee on the sales tax. WTF!?!

So not only do we get the BS government intrusion of the 1099-K (which should have a much higher limit based on the fact it was enacted in the 1950s when $600 was a shit load of money).

This is more than just a few pennies for their troubles. Whomever thought of that is an outright thief. That would be like Walmart charging you a fee to pay your sales tax for you.

Now I won't go broke over $1.56, but it is just the principle of it. It isn't like eBay isn't collecting interest on the sales tax before they remit it for us (I am sure they hold the sales tax funds as long as humanly possible to keep their Free Cash Flow position as large as possible...that should be more than sufficient. Taking 6% of the sales tax is a tax on a EFFING tax.

I will not be selling another through them as I think this is fundamentally wrong and I will not support it farther.

[mickey]

I stopped using ebay several years ago when they said I had to accept paypal in order to list an item.
Instead I sold it thru CL and have never looked back.

[mozz]

I get my payments in a few days now. I think once I bring the items to the post office it lets them know it's on it's way. Just got the $600 notice so now I have to pay taxes selling used stuff. Bad enough on all their fees. You really have to get items very cheap or free to actually make any profit.

[Flatline]

I stopped selling online both eBay and Reverb. Both bend over backwards to side with scammers when something goes wrong. The new 1099 stuff was icing on the cake. I'm done unless something changes in both regards. What little bit I have sold since then has been done via my wife on Facebook Marketplace and local. CL in my area isn't active enough to be worth the time to even post a listing. What has resulted is pretty close to gear hoarding.

[toomanycats]

So not only do we get the BS government intrusion of the 1099-K

That's the least of your (our) worries.

The IRS just had their budget increased 600 % and is actively recruiting 87,000 new employees with the caveat that any prospective candidate must be willing to carry a firearm and use deadly force in exchange for their paycheck and pension.

iiit.jpg (51.3 KiB) Viewed 2471 times

[tonebender]

The taxman cometh.

[honyock]

I stopped selling online both eBay and Reverb. Both bend over backwards to side with scammers when something goes wrong. The new 1099 stuff was icing on the cake. I'm done unless something changes in both regards. What little bit I have sold since then has been done via my wife on Facebook Marketplace and local. CL in my area isn't active enough to be worth the time to even post a listing. What has resulted is pretty close to gear hoarding.

Unfortunately the government and our representatives will not do anything to fix the ills slipped into the COVID bills no matter how incorrect (I'd argue illegal, but I am not in a position to agrue the Wayfair ruling at the level of the supreme court where that would need to be overturned to correct this governmental overreach) the application of the tax it may be. Once they get the taste of the ill gotten 1099-k tax money, they will be hooked forever like a methhead.

[peskypesky]

The taxman cometh.

Yep.

[Partscaster]

So not only do we get the BS government intrusion of the 1099-K

That's the least of your (our) worries.

The IRS just had their budget increased 600 % and is actively recruiting 87,000 new employees with the caveat that any prospective candidate must be willing to carry a firearm and use deadly force in exchange for their paycheck and pension.


iuo.jpeg

Not aiming this at you TMC.
Beware the scare mongering that IRS will be coming armed with increased audits for "any and all" Americans. The increase for IRS is largely for more office work, including increased audits for the wealthiest,..."where the money is". And who the people are who have most been benefiting from the defunding of the IRS that has taken place in past years.

"IRS Commissioner Charles Rettig -- who was appointed by former President Donald Trump -- said earlier this month that the agency will only be increasing audits of the wealthiest Americans."

"It's unbelievable that we even need to say this, but there are not going to be 87,000 armed IRS agents going door-to-door with assault weapons. This is funding for answering phone calls and upgrading computer systems," Wyden, chairman for Senate Finance Committee.

"By hampering the effective operation of the IRS, the XXX (redacted by partscaster) allows rich Americans to dodge much -- or even most -- of their tax burden. Audit rates also have plummeted -- especially for the wealthiest Americans. The GAO reported that "audit rates decreas(ed) the most for taxpayers with incomes of $200,000 or more." The New York Times, meanwhile, reported that audits rate for millionaires dropped by over 60% since 2010.'

[LightWingStudios]

Any sales we make on FleaBay/Reverb Payments the funds are in our Bank in 48-72 Hours.

If they use Paypal on FleaBay/Reverb then it is the same or INSTANT if we select that option for ANOTHER 1% fee...we never do that.

By Federal Law, any Sales Tax Collected is to be kept in NON INTEREST BEARING ACCOUNTS and transmitted to the States at the end of each month.

Sales Tax is NOT included in the Fees Charged. FleaBay DID act on sellers dumping Items, for example, for $1.99 and charging 19.99 for shipping thereby trying to reduce their Seller Fees. Their Fees INCLUDE BOTH now. That said, to compensate, their Shipping is HEAVILY Discounted over the price you pay at the Shipping Company counters. Yeah I know...FleaBay and Reverb actually doing the right thing. WHO KNEW?

In tax year 2022, the threshold for reportable income will drop significantly to $600, with no transaction minimum. You can thank the "Previous Administration" for that.

How do I know all this? We sell our products STRICTLY direct to the Customer over "The Internets". We report ALL Income received thru our Business. Yeah we'll get a 1099 at year end so I stay laser focused on DEDUCTIBLE BUSINESS EXPENSES to write off as much as possible.

Finally...

What Partscaster said.

[Stig]

Not aiming this at you TMC.
Beware the scare mongering that IRS will be coming armed with increased audits for "any and all" Americans. The increase for IRS is largely for more office work, including increased audits for the wealthiest,..."where the money is". And who the people are who have most been benefiting from the defunding of the IRS that has taken place in past years.

"IRS Commissioner Charles Rettig -- who was appointed by former President Donald Trump -- said earlier this month that the agency will only be increasing audits of the wealthiest Americans."

"It's unbelievable that we even need to say this, but there are not going to be 87,000 armed IRS agents going door-to-door with assault weapons. This is funding for answering phone calls and upgrading computer systems," Wyden, chairman for Senate Finance Committee.

"By hampering the effective operation of the IRS, the XXX (redacted by partscaster) allows rich Americans to dodge much -- or even most -- of their tax burden. Audit rates also have plummeted -- especially for the wealthiest Americans. The GAO reported that "audit rates decreas(ed) the most for taxpayers with incomes of $200,000 or more." The New York Times, meanwhile, reported that audits rate for millionaires dropped by over 60% since 2010.'

The fear mongering of the right to convince the rubes to vote against their own self interest is sickening.

[honyock]

Any sales we make on FleaBay/Reverb Payments the funds are in our Bank in 48-72 Hours.

If they use Paypal on FleaBay/Reverb then it is the same or INSTANT if we select that option for ANOTHER 1% fee...we never do that.

By Federal Law, any Sales Tax Collected is to be kept in NON INTEREST BEARING ACCOUNTS and transmitted to the States at the end of each month.

Sales Tax is NOT included in the Fees Charged. FleaBay DID act on sellers dumping Items, for example, for $1.99 and charging 19.99 for shipping thereby trying to reduce their Seller Fees. Their Fees INCLUDE BOTH now. That said, to compensate, their Shipping is HEAVILY Discounted over the price you pay at the Shipping Company counters. Yeah I know...FleaBay and Reverb actually doing the right thing. WHO KNEW?

In tax year 2022, the threshold for reportable income will drop significantly to $600, with no transaction minimum. You can thank the "Previous Administration" for that.

How do I know all this? We sell our products STRICTLY direct to the Customer over "The Internets". We report ALL Income received thru our Business. Yeah we'll get a 1099 at year end so I stay laser focused on DEDUCTIBLE BUSINESS EXPENSES to write off as much as possible.

Finally...

What Partscaster said.

I assure you that they are charging final value fees of 6% on sales tax remitted upon the sellers behalf.

I did the calculation just to check.

Sent from my SM-G998U using Tapatalk



Also, hobbyists are not allowed to deduct expenses so that doesn't help Joe Blow who sells a few guitars which due to inflation/devaluation of the dollar vs. when that purchase was made will now have to likely pay at their income tax rate.

If I bought something in 2020 for example, it is now devalued by 15% due to inflation. If I sell something for more than I paid but less than the 15% difference. I should not get taxed at my income tax rate on that amount, but I will.

image.png (3.4 KiB) Viewed 2493 times

[peskypesky]

I assure you that they are charging final value fees of 6% on sales tax remitted upon the sellers behalf.

I did the calculation just to check.

Sent from my SM-G998U using Tapatalk



Also, hobbyists are not allowed to deduct expenses so that doesn't help Joe Blow who sells a few guitars which due to inflation/devaluation of the dollar vs. when that purchase was made will now have to likely pay at their income tax rate.

If I bought something in 2020 for example, it is now devalued by 15% due to inflation. If I sell something for more than I paid but less than the 15% difference. I should not get taxed at my income tax rate on that amount, but I will. image.png

So don't use Ebay. Try Facebook marketplace.

[thepezident]

The man with the briefcase can steal more than the man with the gun.

[toomanycats]

Not aiming this at you TMC.
Beware the scare mongering that IRS will be coming armed with increased audits for "any and all" Americans. The increase for IRS is largely for more office work, including increased audits for the wealthiest,..."where the money is". And who the people are who have most been benefiting from the defunding of the IRS that has taken place in past years.

"IRS Commissioner Charles Rettig -- who was appointed by former President Donald Trump -- said earlier this month that the agency will only be increasing audits of the wealthiest Americans."

"It's unbelievable that we even need to say this, but there are not going to be 87,000 armed IRS agents going door-to-door with assault weapons. This is funding for answering phone calls and upgrading computer systems," Wyden, chairman for Senate Finance Committee.

"By hampering the effective operation of the IRS, the XXX (redacted by partscaster) allows rich Americans to dodge much -- or even most -- of their tax burden. Audit rates also have plummeted -- especially for the wealthiest Americans. The GAO reported that "audit rates decreas(ed) the most for taxpayers with incomes of $200,000 or more." The New York Times, meanwhile, reported that audits rate for millionaires dropped by over 60% since 2010.'

The fear mongering of the right to convince the rubes to vote against their own self interest is sickening.

Right, left, two wings of the same bird. Always has been. Their idea of your "self interest," both right and left, is for you and your children's, children's, children to be their serfs. This Canadian had that figured out 53 years ago.

[jtcnj]

One man's concerns are another mans fear mongering or conspiracy theories, from both sides, or all sides.
Shame there is not much legitimate factual debate with mutual respect these days, in general.

If the bulk of their IRS new hires are for office work, the "Major Duties" description above does seem contradictory / confusing / alarming.

Either way, I dont see why the the IRS needs to hire more agents. They hired a boat load more when the Healthcare Act debacle was passed to enforce the federal coverage mandate, which has been eliminated.
(I say "debacle" only because for those, myself included, who pay for their medical ins., the fact is costs have risen sharply - the opposite of what was promised. I'm sure it benefits many, but neither I nor my family are among them)

But I digress....
So, there should already be a surplus of IRS / federal government employees with too much time on their hands.
Or, an added surplus.
What are they really up to?

[Buddha Pickups]

Any sales we make on FleaBay/Reverb Payments the funds are in our Bank in 48-72 Hours.

If they use Paypal on FleaBay/Reverb then it is the same or INSTANT if we select that option for ANOTHER 1% fee...we never do that.

By Federal Law, any Sales Tax Collected is to be kept in NON INTEREST BEARING ACCOUNTS and transmitted to the States at the end of each month.

Sales Tax is NOT included in the Fees Charged. FleaBay DID act on sellers dumping Items, for example, for $1.99 and charging 19.99 for shipping thereby trying to reduce their Seller Fees. Their Fees INCLUDE BOTH now. That said, to compensate, their Shipping is HEAVILY Discounted over the price you pay at the Shipping Company counters. Yeah I know...FleaBay and Reverb actually doing the right thing. WHO KNEW?

In tax year 2022, the threshold for reportable income will drop significantly to $600, with no transaction minimum. You can thank the "Previous Administration" for that.

How do I know all this? We sell our products STRICTLY direct to the Customer over "The Internets". We report ALL Income received thru our Business. Yeah we'll get a 1099 at year end so I stay laser focused on DEDUCTIBLE BUSINESS EXPENSES to write off as much as possible.

Finally...

What Partscaster said.

Not trying to take sides but one thing from this is incorrect. As someone who has paid the 1099 multiple times, the decrease to 600 for the reporting requirement was enacted by many states that had blue state legislatures (Illinois, Massachusetts, Maryland, Virginia) prior to being made federal when it was included in the last stimulus passed in early 2021 that was approved by both sides of congress/senate, under the current administration that is now taking effect in tax year 2022.
With that said I dislike any side of our government pretty evenly as I believe its a club of rich elites that only care about themselves but I digress.

[Buddha Pickups]

So not only do we get the BS government intrusion of the 1099-K

That's the least of your (our) worries.

The IRS just had their budget increased 600 % and is actively recruiting 87,000 new employees with the caveat that any prospective candidate must be willing to carry a firearm and use deadly force in exchange for their paycheck and pension.


iuo.jpeg


iiit.jpg

Supposedly this is to fill positions slowly over the next 8 years as people retire and they say nobody under 400k will see increased audits but it is folly to think that.
Changing the reporting requirement from 20k to 600 targets which income bracket? Certainly not the billionaires we have in this country but the upcoming changes definitely wont impact the blue collar folks, this time, lol.
It doesn't take a genius to figure out that "the government is a big club, and you and I ain't in it".

[honyock]

Who is more likely to be audited, someone with a smart money manager or someone who doesn't understand the tax laws because they have HR Block do their taxes...

Sent from my SM-G998U using Tapatalk

[andrewsrea]

Ringing in no some of the topics here:
- eBay: not a fan, but I keep it as an option. I haven't sold anything there in 10 years and only buy there if they are the only place to find something.

- 1099: I believe that is wrong because if you were a pro musician or this was a business for you, you would have an easier opportunity to depreciate gear or avoid tax, because let's face it - we sell things for break-even at best (more times at a net loss). 1099 to personal income tax, you'd have to have serious dealings to be enticed to itemize vs. standard deduction. So, the 'music' 1099 essentially treats the entire sale value as 100% tax base. IMHO, another case of the government feeling my money is theirs for the taking.

- IRS build up. Preempt #1: I had a 35-year career in the top aerospace companies of the world and rose to becoming the CFO of Defense Supply Chain division of one such company. in as such, I interacted on a very frequent basis with all levels of government. Monthly at first, to daily at the end. I am acquainted with a few senators, met Nancy Pelosi twice, Mitch McConnell once, a dozen generals (I am still friends with one Lt. General, Ret.), a vice-admiral, countless officers, grunts and bureaucrats. The one thing they all definitely had in common was self-preservation and advancement. When demand for their skills would wane, they would create an event which necessitated their vital role. Now some of these people became close friends (one became my employee) and many openly admitted to make-work, especially the government auditors.

Preempt #2: the IRS was reformed in 1998 on the basis that it regularly engaged in audits as 'make-work to keep agents employed' and undeniably spent exponentially more than they recovered from their effort (I vaguely remember their aggregate effort was performed at a 60% loss). Example: early in my career when I was close to an entry-level salary, I was subject of a personal federal income tax on-location field audit (at my home). My pay would have been considered lower-middle class, my taxes and situation were extremely simple, and were easily well supported by documentation. Being finance oriented, I never personally saw the benefit in tax cheating, so again - straight forward tax returns. Including the agent's office time spent on my case, his administrative support, agency overhead and field time, he told me my audit took about 3 weeks and many people. At my house he did a little 'fishing' but admitted that he knew I was shooting straight and indicated I had nothing to worry about that this was a routine audit to keep agents busy.

Besides prevalent make-work audits on normal citizens and small businesses, the 'big fish' audits were also IRS flops. IRS lawyers and prosecutors were no match for the expensive corporate lawyers who would tie up cases for years and settle for pennies on the dollar. Those taxpayer losses were monumental. 1998 IRS reform happened, and reports confirmed that net tax revenue was up!

IMHO the doubling of the IRS will result in the EXACT SAME results as pre-1998 reform. Little people and business will be the prime target, because it is a less resistive way to 'keep your dance card full' (actual auditor speak) and IRS will just throw more money at big cases, to which they would net a better settlement by quickly entering plea deals instead. I believe the IRS could scrape in a few more dollars, if they skipped more people and improved their artificial intelligence efforts (which is not covered in our new laws).

[redman]

I concur Ebay sucks but, I didn't think we were going to get into the political arena with this forum for the obvious my team your team stances that causes people to get angry and the IRS new hire is one of the huge poltical conversations right now with both conservatives and liberals at each others throats and I don't want any members of our really small forum to get angry at each other and possibly leave so let's get back to music and not go down this Rabbit Hole.

[honyock]

I assure you that they are charging final value fees of 6% on sales tax remitted upon the sellers behalf.

I did the calculation just to check.

Sent from my SM-G998U using Tapatalk



Also, hobbyists are not allowed to deduct expenses so that doesn't help Joe Blow who sells a few guitars which due to inflation/devaluation of the dollar vs. when that purchase was made will now have to likely pay at their income tax rate.

If I bought something in 2020 for example, it is now devalued by 15% due to inflation. If I sell something for more than I paid but less than the 15% difference. I should not get taxed at my income tax rate on that amount, but I will. image.png

So don't use Ebay. Try Facebook marketplace.

I will be going forward. They slip crap like this into the changes that you don't see unless you read every line of the use agreement.

Just like how they switched to managed payments from Paypal, as I had used for probably 20 years with them, some time in the past few years since I last sold anything, so I had to set up my banking information when I set up my listing and even then I am treated like a scammer by not getting paid immediately as it was always done in the past.

[mozz]

Ok, so i bought about a few thousand new old stock IC chips, pretty sure they were from a Lucent auction. I looked each of them up and posted on Ebay for less than half of what they sell for. Over the years i have more than made my $20 investment back. Usually $3.50 shipping for the first, then a few cent for each additional chip. Most chips i just marked for $1 each. Money dribbles in, some times a guy wants 20 or 50 pieces, sometimes 1 chip. On this one i did not make any money on shipping.

[nomadh]

So I have not sold through eBay in a long while, but apparently they have set up a managed payment instead of direct pay from the buyer to seller. So now I need to wait a significant amount of time after I have already shipped the package and it will be delivered for about 2 weeks before my payment posts per their estimate on my eBay.

So now it is just one fee instead of PayPal or whomever taking their cut and the final value fee cut, whatever, fine. However, they are also charging that same fee on the sales tax. WTF!?!

So not only do we get the BS government intrusion of the 1099-K (which should have a much higher limit based on the fact it was enacted in the 1950s when $600 was a shit load of money).

This is more than just a few pennies for their troubles. Whomever thought of that is an outright thief. That would be like Walmart charging you a fee to pay your sales tax for you.

Now I won't go broke over $1.56, but it is just the principle of it. It isn't like eBay isn't collecting interest on the sales tax before they remit it for us (I am sure they hold the sales tax funds as long as humanly possible to keep their Free Cash Flow position as large as possible...that should be more than sufficient. Taking 6% of the sales tax is a tax on a EFFING tax.

I will not be selling another through them as I think this is fundamentally wrong and I will not support it farther.

Maybe this is a good thing. Most everything I sell is used and at a loss. Buy a shirt for $20 and sell it for $5?
Bang $15 biz loss! Of course they will want a reciept. Iguess just show you spent money at target 5 years ago and say that's it.
Seems to me this stupid law just zero ed out all of our tax bills!
Thank you uncle sam

[nomadh]

So not only do we get the BS government intrusion of the 1099-K

That's the least of your (our) worries.

The IRS just had their budget increased 600 % and is actively recruiting 87,000 new employees with the caveat that any prospective candidate must be willing to carry a firearm and use deadly force in exchange for their paycheck and pension.


iuo.jpeg


iiit.jpg

So another secret federal police force