eBay asking users for their Social Security numbers ahead of rule change by IRS

Hasn't asked me yet. Or I haven't noticed.

I have noticed that Paypal has been giving me tax forms for money I have been sent, which is total bullshit.

I am not a reseller, or a business of any kind. Since when is old stuff you sell on a classifieds section "taxable income"?

I already paid taxes on that shit when I bough it when it was new!
 
Hasn't asked me yet. Or I haven't noticed.

I have noticed that Paypal has been giving me tax forms for money I have been sent, which is total bullshit.

I am not a reseller, or a business of any kind. Since when is old stuff you sell on a classifieds section "taxable income"?

I already paid taxes on that shit when I bough it when it was new!
Lol, maybe pay attention to what has been going on and the new irs rules.
 
Lol, maybe pay attention to what has been going on and the new irs rules.

How is one supposed to find out about these new rules? Got any links?

I follow the news religiously, but unless it is something big (like changes to major deduction limits or something like that) tax law changes rarely make the news.
 
How is one supposed to find out about these new rules? Got any links?

I follow the news religiously, but unless it is something big (like changes to major deduction limits or something like that) tax law changes rarely make the news.
Uh, look up the irs rule changes. They were supposed to start for 2022 taxes but got pushed back. Also, you probably don't have to pay taxes if you can prove you didn't make more than you purchased a product you sold. But, that isn't for PayPal to decide so they send what they send.

I mean it was passed in 2021.

https://www.cnbc.com/2021/03/26/its...g-the-irs-about-income-from-online-sales.html
 
Lol, maybe pay attention to what has been going on and the new irs rules.

I just read this shit. It is utterly unintelligible.

https://www.irs.gov/pub/irs-drop/n-2023-10.pdf

I consider myself to have a pretty large vocabulary, but reading this jargon-filled nonsense is impossible. It ammounts to gobbledygook. What on earth is a TPSO?

Heck, a google search for TPSO turns up a bunch of Sheriffs departments for parishes in Louisiana starting with the letter T, but nothing else.

What I gather from context though is that apparently there was an old rule in place that only required them to report sales in excess of $20k or if there were more than 200 transactions in a year.

That was apparently changed to a $600 reporting limit which was supposed to be implemented for tax year 2022, but they delayed implementation to 2023.

Now what does reportable mean? Ok, so ebay or other third parties have to report the transaction, but what are the rules regarding what is actually taxable?

I can totally understand that this makes sense for those who make their living selling shit online, but average people just selling their old stuff in online classifieds should never have to pay any taxes on that shit. If that is the intent, then it is pitchfork time.
 
You actually always had to pay taxes on anything you have sold for profit. It was just something that couldn't be tracked as easily. Now with ebay and all these cash apps it is easy to do. This is why they want to push to all digital currency.
 
Now what does reportable mean? Ok, so ebay or other third parties have to report the transaction, but what are the rules regarding what is actually taxable?

I can totally understand that this makes sense for those who make their living selling shit online, but average people just selling their old stuff in online classifieds should never have to pay any taxes on that shit. If that is the intent, then it is pitchfork time.
The cnbc link makes it sound like you only need to worry about this if you make income from your sales (if you're selling old stuff your generally not making any income). Not clear if you still need to report it somewhere though?
 
Hasn't asked me yet. Or I haven't noticed.

I have noticed that Paypal has been giving me tax forms for money I have been sent, which is total bullshit.

I am not a reseller, or a business of any kind. Since when is old stuff you sell on a classifieds section "taxable income"?

I already paid taxes on that shit when I bough it when it was new!
Ebay owns Pay Pal, you can't run!
 
The cnbc link makes it sound like you only need to worry about this if you make income from your sales (if you're selling old stuff your generally not making any income). Not clear if you still need to report it somewhere though?

I found this.

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf

Which uses slightly closer to real English to explain things.

Sounds like unless you sold for a profit, you can just disregard these forms. if you did sell for a profit though, you have to report them as capital gains on form 8949. At least that is my non-legal interpretation.

Apparently you can not report selling at below purchase price as a loss.

What a shame. Would be hilarious to report the sale of used video cards as a tax shelter. :p
 
Ebay owns Pay Pal, you can't run!

eBay did buy PayPal way back in 2002, but they spun it off into it's own company in 2015. They kept an agreement to keep it as an option for eBay payments through 2020, but that has obviously now expired, which is why eBay now requires you to do payments directly through them if you are a seller.
 
eBay did buy PayPal way back in 2002, but they spun it off into it's own company in 2015. They kept an agreement to keep it as an option for eBay payments through 2020, but that has obviously now expired, which is why eBay now requires you to do payments directly through them if you are a seller.
This. Ebay and Paypal got a divorce. But it's not your fault! They both still love you(r money).

Ebay is fking BS now as a seller, you have to link a checking account to get paid. No fking way, Ebay. My days as a seller there are over. And THAT is even on top of all the scammer bastards.

I don't book my face, so no FB marketplace. And no Craigslist, I don't want to get shot or scammed. I sell a couple things on here now and then, but some stuff doesn't move. SIGH I guess Reddit is next? I'm scared :(
 
This. Ebay and Paypal got a divorce. But it's not your fault! They both still love you(r money).

Ebay is fking BS now as a seller, you have to link a checking account to get paid. No fking way, Ebay. My days as a seller there are over. And THAT is even on top of all the scammer bastards.

I don't book my face, so no FB marketplace. And no Craigslist, I don't want to get shot or scammed. I sell a couple things on here now and then, but some stuff doesn't move. SIGH I guess Reddit is next? I'm scared :(

I haven't used eBay as a seller since this change, but even back when they were using PayPal, it just wasn't worth it anymore. I would just rather not sell something than eat the combination of eBay and PayPal fees.

My old hardware can just continue to collect dust in my spare parts bin rather than be sold on eBay. It just isn't worth it.

I'll sell things locally and in various forums FSFT sections but if it doesn't sell there, no way I'm putting it on eBay like years ago. It's nowhere near worth it.

Their fee structure is insane. The value they add is worth at most a few bucks per sale. Any more than like $5 at most in total fees per sale, and I'm just not going to use it. I'll post it on Craigslist for free instead.
 
I found this.

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf

Which uses slightly closer to real English to explain things.

Sounds like unless you sold for a profit, you can just disregard these forms. if you did sell for a profit though, you have to report them as capital gains on form 8949. At least that is my non-legal interpretation.

Apparently you can not report selling at below purchase price as a loss.

What a shame. Would be hilarious to report the sale of used video cards as a tax shelter. :p
As far as I know capital gains is only for items sold within a year of buying them. I'm in the process of doing my taxes and I sell a fair number of items on eBay, not for business or profit but personal items I've purchased. As an individual, items sold at a loss or not at a profit are not taxable. Items sold for profit are. My understanding is unless you are a business, you cannot use losses to offset gains, which makes some sense since you would expect personal items to depreciate while a business likely doesn't want to deal in selling stuff for a loss. Most of the stuff I buy at this point fortunately has an easy to find online receipt, but I do have to do per item breakdowns of what I purchased and then sold, and individual profits, at least for eBay. It's not as bad as it sounds, but I will probably make a spreadsheet for my 2023 purchases to get ahead of next year's taxes. While eBay does not know what you paid, they give you a nice spreadsheet including order totals, how much you paid in fees, and how much you paid in shipping costs to simplify things.
 
I haven't used eBay as a seller since this change, but even back when they were using PayPal, it just wasn't worth it anymore. I would just rather not sell something than eat the combination of eBay and PayPal fees.

My old hardware can just continue to collect dust in my spare parts bin rather than be sold on eBay. It just isn't worth it.

I'll sell things locally and in various forums FSFT sections but if it doesn't sell there, no way I'm putting it on eBay like years ago. It's nowhere near worth it.

Their fee structure is insane. The value they add is worth at most a few bucks per sale. Any more than like $5 at most in total fees per sale, and I'm just not going to use it. I'll post it on Craigslist for free instead.
I'm in the same boat. Only use ebay as a LAST resort to sell anything. As such I've got a pile of parts sitting around that I really should get rid of and I haven't sold anything in a looooong time. If it weren't for this place I wouldn't even know heatware existed and I haven't sold anything online since it's been a thing.

Just wait until all those new IRS agents get put in play. Be prepared to be audited if you file anything other than the standard deduction.
 
Hasn't asked me yet. Or I haven't noticed.

I have noticed that Paypal has been giving me tax forms for money I have been sent, which is total bullshit.

I am not a reseller, or a business of any kind. Since when is old stuff you sell on a classifieds section "taxable income"?

I already paid taxes on that shit when I bough it when it was new!
Paypal does it now for anything over $600 when you do goods and services. That is the reason. Everything else or if its sent F&F there is no social required. Thats why I stopped doing paypal goods and services if I sell shit here. Not worth it.
 
I found this.

https://www.irs.gov/pub/taxpros/fs-2022-41.pdf

Which uses slightly closer to real English to explain things.

Sounds like unless you sold for a profit, you can just disregard these forms. if you did sell for a profit though, you have to report them as capital gains on form 8949. At least that is my non-legal interpretation.

Apparently you can not report selling at below purchase price as a loss.

What a shame. Would be hilarious to report the sale of used video cards as a tax shelter. :p
Q7 at the bottom of page 3 is a real peach. Basically, it says that if you sold two sets of concert tickets, one for a gain and one for a loss, you have to pay taxes on the gains for one set, but you can't use the loss on the second set to offset the gains. By that token, you can't consider all of your sales for the year in their totality. For example, you could make a $500 profit on one item and lose a total of $1000 on everything else and you would owe taxes on $500. As a business, you would have a $500 loss. As an individual, you effectively have a $500 gain. So, you are treated worse than an actual business. Heads I win, tails you lose.
 
Q7 at the bottom of page 3 is a real peach. Basically, it says that if you sold two sets of concert tickets, one for a gain and one for a loss, you have to pay taxes on the gains for one set, but you can't use the loss on the second set to offset the gains. By that token, you can't consider all of your sales for the year in their totality. For example, you could make a $500 profit on one item and lose a total of $1000 on everything else and you would owe taxes on $500. As a business, you would have a $500 loss. As an individual, you effectively have a $500 gain. So, you are treated worse than an actual business. Heads I win, tails you lose.
Partially true...if you sold as a business, you would also be on the hook for self employment tax.

And the thought you dont have to report the income if it is sold at a loss is a nice thought, but be prepared to defend it. The IRS (and other revenue agencies) have this lovely little caveat where you really are guilty until proven innocent. Dont forget, ebay also sends the IRS a copy of the revenue forms.

-------

Side rant...

When you're $30 trillion in the hole and still spending with no discipline expect it to get worse. Just make the rich pay their fair share, right? Nope. If you look at IRS data, if the top 1% were taxed at 100% and just kept working normally it wouldn't be enough to close the current deficit, let alone start to pay anything back. The middle class will have to be taxed at much higher rates.
 
Here is a bit light information: The AICPA and others (some legislators) have protested this new $600 limit 1099k. The basis of the protest is that the dollar amount is too low and will cause the IRS to work even less efficiently.
Word on the street is they have pushed it back to allow for a smoother transition. They have also done this to reconsider the dollar amount. It will likely be around $2000-$10,000.
 
You're taxed everywhere, its ridiculous.

Buy something, tax.
Sell, tax.
Work, tax.
Want to live somewhere, tax.
Want to have a car, tax.
Want fuel for the car, tax.
Want to drive the road to work, toll tax.
Ad nauseum

Sell crap you bought taxed with taxed money that you used your multiple-taxed car... you betcha, tax. You shouldn't be taxed in every direction! If you bought X taxed with taxed money, it should be fair to sell it without more.

Right after you get a paycheck you'll only get ~70% of it normally, but after the taxes above I need to recheck my math. My gut says half.

These $600+ laws don't hurt the rich, just another slam to everyone else. Just like traffic tickets (poor peoples tax).
 
yeah it is just important to remember that unless it's for a profit, taxes aren't owed.

then you have to prove to the IRS that you didn't make a profit on that old item you had laying around and sold.
 
You're taxed everywhere, its ridiculous.

Buy something, tax.
Sell, tax.
Work, tax.
Want to live somewhere, tax.
Want to have a car, tax.
Want fuel for the car, tax.
Want to drive the road to work, toll tax.
Ad nauseum

Sell crap you bought taxed with taxed money that you used your multiple-taxed car... you betcha, tax. You shouldn't be taxed in every direction! If you bought X taxed with taxed money, it should be fair to sell it without more.

Right after you get a paycheck you'll only get ~70% of it normally, but after the taxes above I need to recheck my math. My gut says half.

These $600+ laws don't hurt the rich, just another slam to everyone else. Just like traffic tickets (poor peoples tax).
You forgot the tax fee on the taxes paid.
 
You're taxed everywhere, its ridiculous.

Buy something, tax.
Sell, tax.
Work, tax.
Want to live somewhere, tax.
Want to have a car, tax.
Want fuel for the car, tax.
Want to drive the road to work, toll tax.
Ad nauseum

Sell crap you bought taxed with taxed money that you used your multiple-taxed car... you betcha, tax. You shouldn't be taxed in every direction! If you bought X taxed with taxed money, it should be fair to sell it without more.

Right after you get a paycheck you'll only get ~70% of it normally, but after the taxes above I need to recheck my math. My gut says half.

These $600+ laws don't hurt the rich, just another slam to everyone else. Just like traffic tickets (poor peoples tax).

I'm all for throwing out the current tax code and replacing it from scratch.

I'd ban all taxes other than the income tax, but we also need to pay for everything state and local gover menta do, so income taxes would have to go up in that case. I'd restructure them though.

I'd make the median income in your zip code equal the standard deduction, so that you only get taxed on amounts above that, on a highly progressive scale, shifting the tax burden up to those who can most afford it.

Then I'd limit states and municipalities to only be able to tax based on the income tax. Each city or town can choose only a fixed percentage of federal income taxes as their tax burden.

This should simplify taxes for everyone, get rid of the nickel and diming, and make the tax system more fair.
 
I'm all for throwing out the current tax code and replacing it from scratch.

I'd ban all taxes other than the income tax, but we also need to pay for everything state and local gover menta do, so income taxes would have to go up in that case. I'd restructure them though.

I'd make the median income in your zip code equal the standard deduction, so that you only get taxed on amounts above that, on a highly progressive scale, shifting the tax burden up to those who can most afford it.

Then I'd limit states and municipalities to only be able to tax based on the income tax. Each city or town can choose only a fixed percentage of federal income taxes as their tax burden.

This should simplify taxes for everyone, get rid of the nickel and diming, and make the tax system more fair.

Flat tax would make things far simpler, but will never happen. Tax code will only get more complicated for carve outs for the wealthy. If your in the middle class, you just pay...
 
I'm all for throwing out the current tax code and replacing it from scratch.

I'd ban all taxes other than the income tax, but we also need to pay for everything state and local gover menta do, so income taxes would have to go up in that case. I'd restructure them though.

I'd make the median income in your zip code equal the standard deduction, so that you only get taxed on amounts above that, on a highly progressive scale, shifting the tax burden up to those who can most afford it.

Then I'd limit states and municipalities to only be able to tax based on the income tax. Each city or town can choose only a fixed percentage of federal income taxes as their tax burden.

This should simplify taxes for everyone, get rid of the nickel and diming, and make the tax system more fair.
Zarathustra for prez! I'm fine with an income tax, but not getting taxed everywhere!

I think a house cleaning of govt entities would drastically reduce the tax needs too. Personal example: Every single government job in construction is prevailing wage, instead of a system that pushes for efficient expedited work, you'll see schools take months to remodel/build but actual work time is a couple days.

I heard Washington is putting a toll on interstate-5, how does a state tax a federal highway?

Sorry, getting off topic. Guess all sales will be <=599.99, what about multiple payment plans? Lol. 4 simple payments of 599 for X product
 
You're taxed everywhere, its ridiculous.

Buy something, tax.
Sell, tax.
Work, tax.
Want to live somewhere, tax.
Want to have a car, tax.
Want fuel for the car, tax.
Want to drive the road to work, toll tax.
Ad nauseum

Sell crap you bought taxed with taxed money that you used your multiple-taxed car... you betcha, tax. You shouldn't be taxed in every direction! If you bought X taxed with taxed money, it should be fair to sell it without more.

Right after you get a paycheck you'll only get ~70% of it normally, but after the taxes above I need to recheck my math. My gut says half.

These $600+ laws don't hurt the rich, just another slam to everyone else. Just like traffic tickets (poor peoples tax).
You forgot the sales tax charged on a restocking fee when merch is returned! :-P
 
You forgot the sales tax charged on a restocking fee when merch is returned! :-P
And if you live in California, we have fees too. Battery disposal fee, mattress disposal fee, electronic disposal, television/moiitor disposal fees, and etc etc.. Does the government actually offer easy access to dispose of waste after they collect the sales fee? Of course not.
 
And if you live in California, we have fees too. Battery disposal fee, mattress disposal fee, electronic disposal, television/moiitor disposal fees, and etc etc.. Does the government actually offer easy access to dispose of waste after they collect the sales fee? Of course not.

If the government is going to charge me a disposal fee when I buy something, they had better be there to pick it up at my house and dispose of it at the end of its service life.
 
If the government is going to charge me a disposal fee when I buy something, they had better be there to pick it up at my house and dispose of it at the end of its service life.

Not at all. I have to pay local companies to get rid of my batteries, monitor, mattress..Only thing I don't have to pay is engine oil. Differ a bit city from city. San Bernardino will pick up 5 big items 3 times a year....maybe because they want to improve the neighborhood. My county, it's all out of pocket.
 
As far as I know capital gains is only for items sold within a year of buying them. I'm in the process of doing my taxes and I sell a fair number of items on eBay, not for business or profit but personal items I've purchased. As an individual, items sold at a loss or not at a profit are not taxable. Items sold for profit are. My understanding is unless you are a business, you cannot use losses to offset gains, which makes some sense since you would expect personal items to depreciate while a business likely doesn't want to deal in selling stuff for a loss. Most of the stuff I buy at this point fortunately has an easy to find online receipt, but I do have to do per item breakdowns of what I purchased and then sold, and individual profits, at least for eBay. It's not as bad as it sounds, but I will probably make a spreadsheet for my 2023 purchases to get ahead of next year's taxes. While eBay does not know what you paid, they give you a nice spreadsheet including order totals, how much you paid in fees, and how much you paid in shipping costs to simplify things.

So, capital gains sold within a year are short term and over a year are long term. They are taxed differently.

You can always do a "sole proprietor" business and write off your losses against your gains, however, you pay a different self-employment tax. Might be worth it, might not be. Otherwise, it's considered "hobby income." You still pay taxes, don't have to pay self-employment tax, and can't write off losses.

Put it this way, I went from getting maybe $1K back as a refund to owing $3.5K. Multiple taxation of sold goods is idiotic. The only time it should be taxed is when it is new.
 
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