The IRS loves to tax us to death, I am sure they are finding a way to tax you for your garage sale earnings. what about Ebay. Is there a dollar amount they (IRS) look at to run after you. Im betting if you sell $200 worth of items you will fly under the radar. Is there an amount be it $500 or $1000 when you better watch for them?
Garage sale- Ebay earnings. when does the Irs look at you?
- Thread starter NJ Marty
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Red James Cash
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Theyre already looking at you and so is the NSA,have fun with paypal and ebay.If youre depositing checks for 500 bucks or over your bank is already reporting you.Thank you for supporting the unpatriotic act.
NHBandit
Silver Member
No idea but unless you get your stock that you resell for free it's not all that hard to show a loss. If you're making 40k a year on Ebay you might have an issue though.
Red James Cash
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Ive heard the NSA is doing a little of this and a little of that with paypal,so most likely they have their dirty little fingers in someplace with ebay as well,its only commonsense,1+1=2.What I said about the banks is true though.
Red James Cash
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They have you under for "future reference" NJ Marty,no worries,,,,,,,,,,,Yet.
If you get a total of $20,000.00 in payments through Paypal, Paypal sends you and the irs a 1099. But then you get to deduct all the cost of your items, all ebay and paypal fees, all postage fees, all mileage relating to the business(something over $.50 a mile now), a no questions asked $1500.00 deduction for the portion of your home you use, if you are paying your own health insurance, get to knock it off your gross income. Lots of deductions, but lotso f paper work!!
Nickleanddime
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Im still on the "new" seller probation and went to transfer money from my bank account to the paypal and they want to verify my SS for the irs by having me send a picture of my SS card to them.Until then i can only link a CC to the account thats it.They have to have that paper trail all the time.
S
stefen
Guest
Basically, EBay and PayPal act as your agent and accountant thru most sales (EBay Motors) may be an exception due to a different set of rules. As Desertdog mentioned, EBay and PayPal provides the services described.
The thing to remember is to keep a thorough paper accounting trail of all costs including mileage. Must assume that the IRS has formulated EBay sales over the years and red flags may indicate creative license for costs such as purchase price if goods, shipping and the like.
eBay is an excellent tool if handeled properly.
The thing to remember is to keep a thorough paper accounting trail of all costs including mileage. Must assume that the IRS has formulated EBay sales over the years and red flags may indicate creative license for costs such as purchase price if goods, shipping and the like.
eBay is an excellent tool if handeled properly.
diggummup
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Deserdog has it right. I've posted this before (several times), i'll post it again- https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W
palidin20603
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Key is 200 transactions OR $20,000. If you sell 17 or more items a month, you will get a 1099. Assuming all 12 calendar months of 2013.
My apologies. I am wrong. should be AND not OR
My apologies. I am wrong. should be AND not OR
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Incase you have never been in an audit it's your responsibility to keep records to show what it cost to buy and sell. I have been audited twice neither one was fun and both times auditor were arrogant..
I always use a CPA now, not because I can't do my filing but because of what happens in an audit, they have tricks a filer can't do. After my 1st audit I got a CPA who was ex-irs and I learned a lot from him....
We will NOT go quietly into the night!
diggummup
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Wrong, wrong, wrong. It is 200 transactions AND $20,000. There is no OR involved in the equation. Please read the link I have provided in my prior response.
diggummup
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Better yet, let me cut & paste it-
Internal Revenue Code (IRC) Section 6050W states that all US payment processors, including PayPal, are required by the Internal Revenue Service (IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year.
Internal Revenue Code (IRC) Section 6050W states that all US payment processors, including PayPal, are required by the Internal Revenue Service (IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year.
jerseyben
Gold Member
Glad to see someone is providing cold hard facts instead of fear based theories and guessing. Good luck everyone.
you are wrong marty.it is you who will have to prove you payed 5.00 they will be happy to tax you on the entire 5.50 have a happy 15 of april.
no.I ment that you were wrong to think they would understand that you only made .30 cents off the sale.Sorry but I to have been looked at by the irs.And they have NO since of humor or common since. Let me correct that they have a very dark since of humor and want every penny they can get you would think they got a percetage of what they steal.
TheCoinKid
Hero Member
A home-office deduction is not only a red flag, but it's also one of the hardest deductions to substantiate, upon audit. You also have to recoup the cumulative home-office deduction, upon the sale of your house.
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