GJ eBay sellers question.

[Junkman]

I was just reading the thread about the person wanting to sell lots of sockets, and some people have responding about selling thousands of dollars on eBay. My specific question is, does eBay send you any type of tax reporting document that you need to file with your income tax return? If so, I would think that selling your goods on Craigslist or the Garage Journal forum would be better, because you don't have to pay the seller fees (approximately 10%), and you don't incur any tax consequences.

 

[rk5n]

I've never gotten tax documents from ebay.

Then again you should be reporting all income to the IRS

 

[DSLTRK]

Paypal does the reporting. If you sell over $20000 in a caledar year you will have a 1099 sent to the irs. The 20000 is gross regardless of what the money was for.

 

[nine4gmc]

Paypal does the reporting. If you sell over $20000 in a caledar year you will have a 1099 sent to the irs. The 20000 is gross regardless of what the money was for.

This^

 

[Davefr]

If so, I would think that selling your goods on Craigslist or the Garage Journal forum would be better, because you don't have to pay the seller fees (approximately 10%), and you don't incur any tax consequences.

You're still liable for taxes on the profits regardless of what venue you sell on.

The Paypal threshold is not a tax free ride <$20,000. It just means PP won't report it to the IRS.

However filing the taxes is between you and the IRS.

 

[white 450]

What state are you talking about? Have the items been taxed before you sold them?

 

[bry@n]

Paypal is $20k and 200 transactions. Has to be both. I may be off on the transaction count amount though.

 

[bry@n]

IRS LINK
In addition, section 6050W(e) provides that a third party settlement organization is required to report with respect to third party network transactions of any participating payee only if (1) the aggregate amount with respect to such third party network transactions for the year that would otherwise be reported exceeds $20,000, and (2) the aggregate number of such transactions exceeds 200.