Attention Ebay sellers... bend over!

Azzy · 04-16-2007, 02:23 PM

Selling stuff online? Here comes the IRS | CNET News.com

Americans who sell items through Internet auction sites could be in for an unpleasant surprise at tax time next year, thanks to an IRS proposal designed to identify taxpayers who don't report income from those sales.

[If you think this doesnt apply to you, the limit they are thinking of is $600, which is 2 or so gun sales for many of us- Bryan ]
(Courtesy HardOCP.com)

Drum · 04-16-2007, 02:38 PM

Hey... you didn't think you were gonna get away with this forever did you?

Tax free income? Are you kidding me? That is unAmerican!

As for applying it to guys who buy and sell to support a hobby, it may trickle down eventually, but it will take a while and an army to enforce that. Even today, less than 1 percent of taxpayers are audited, according to the conventional wisdom.

I once deposed a woman who was suing one of my clients for injuries she sustained in a motor vehicle accident. Her sole income was through ebay.
She would go to Sam's Club or BJ's and see what they had in stock. Then she would advertize the same stuff for sale on ebay for $10-15 more plus generous shipping charges.

If/when people won her ebay auctions, she would troop over to the big box and buy the items she needed and ship them off.

Now... I ask you, why should we have to pay tax on our income if this lady is able to live off her ebay earnings tax free?

It's vicious circle.

D.

Azzy · 04-16-2007, 03:00 PM

Thus a great argument for the Fairtax.

But still... they register you for this, and next the states are going to request the info to make sure they can charge you sales tax for everything you bought online.

And how can the IRS settle what was sold used and what was sold new? I thought you couldnt tax an item more than once.

IRS is just one of those things that was never a good idea, and needs to go.

Drum · 04-16-2007, 03:07 PM

The IRS taxes your house everytime you sell it, why not other property. I am no tax expert. Not even a tax payer, really as my wife does all the paperwork (she's an accountant) so I am largely clueless about the details of same.

However, I do recall that "hobby income" is both taxable and you can take a loss on it (to the same or lessor amount than you took in).

So... let's say I take a case of Nelspots that I purchased for $300 and sell each one of them for $300, giving me a profit of one million dollars or something like that. Technically, anything over $600 that I "earn" through such behavior is already taxable under the current tax scheme.

However, if you keep track of that income and add a little clever paintball journalism effort and then you can offset all those earnings with your "losses" associated with attending paintball events.

But you did not hear this from me....

This message will self-destruct in five... four.... three... two.... one...

Brewtt · 04-16-2007, 03:12 PM

Quote:

Originally Posted by Azzy

And how can the IRS settle what was sold used and what was sold new? I thought you couldnt tax an item more than once.

They want to tax the INCOME from the sale... not tax the item. Totally different.

What I want to know is... how much "income" are you really getting by selling something you "own" and have "paid for" already? If I sell something on ebay for less than I bought it for new(over $600 or whatever standards) then am I really making taxable "income" anyway. That does sound odd.

EDIT: I type slow...

Drum kind of hit some of these points. But not exactly.

Azzy · 04-16-2007, 03:13 PM

Lol.. Ive been trying to figure out how to deduct all those guns.

Well, no matter what, the hordes of the people are filing last minute, and being greatfull for "the money I got back".. never thinking of what they could of done with the money that they paid.

(Reagan was right, Americans should have to pay taxes every month, and then they would care and think about this stuff)

Quote:

What I want to know is... how much "income" are you really getting by selling something you "own" and have "paid for" already? If I sell something on ebay for less than I bought it for new(over $600 or whatever standards) then am I really making taxable "income" anyway. That does sound odd.

Arent you loosing money and earning a loss? But what is depreciation of a paintball gun...

Way too complicated. Fairtax is about the only good way to go on any issue.

Drum · 04-16-2007, 03:28 PM

Better yet, all those poor bastards trying to file online were subjected to any number of hackers who managed to lure or intercept many, many e-filed tax returns and change the address of the refund payee to themselves or someone else.

Crazy.

D.

Christian Nelson · 04-16-2007, 04:09 PM

Tax is there because they have more guns than you do.

Simple as that.

They can charge what they want because, they be the IRS, and for whatever reason, due prosces, and rule of law don't apply to them.

I can't outgun them, and I can't win a court fight against them, so I might as well just try not to be noticed, and if I am, just pull out the checkbook.

What else is there to do?

If the mugger totally has the drop on you, and you are fairly confident he will let you go when you pay up, just pay the dude.

sunfisher89 · 04-16-2007, 04:16 PM

It almost makes sense for people making a living with a store on ebay selling new items. But for everything else, it's kinda of like having to pay taxes on a yardsale. That just doesn't make any sense.

Christian Nelson · 04-16-2007, 05:06 PM

If you don't make a profit, you don't pay tax.

People who own used goods stores pay tax on those goods if they make a profit.

I think they are getting after people making a living or even suplimenting thier income via Ebay.

Who knows, maybe this will get rid of the ebay businesses.

I know I am tired of stuff that is the same if not more expensive than retail stuff that is everywhere on ebay thesedays.

I liked it back when it was a bunch of people cleaning out thier garages, and throwing stuff up for sale.

I'd be all over a site that didn't allow anything but that sort of stuff.

04-16-2007, 02:23 PM	#1 (permalink)
Azzy Mod-O-Rator Join Date: Mar 2006 Location: Finleyville, PA	Attention Ebay sellers... bend over! Selling stuff online? Here comes the IRS \| CNET News.com Americans who sell items through Internet auction sites could be in for an unpleasant surprise at tax time next year, thanks to an IRS proposal designed to identify taxpayers who don't report income from those sales. [If you think this doesnt apply to you, the limit they are thinking of is $600, which is 2 or so gun sales for many of us- Bryan ] (Courtesy HardOCP.com) __________________ Bryan "Azzy" Spiegel Riverside Renegade Paintball / C.C. S.V.S. Plankowner - LPPC#6 "It is my right to be uncommon—if I can. I seek opportunity—not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me. I want to take the calculated risk; to dream and to build, to fail and to succeed. I refuse to barter incentive for a dole. I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of utopia. I will not trade freedom for beneficence nor my dignity for a handout. I will never cower before any master nor bend to any threat. It is my heritage to stand erect, proud and unafraid; to think and act for myself, enjoy the benefit of my creations and to face the world boldly and say, “This I have done.” - Dean Alfange

04-16-2007, 03:00 PM	#3 (permalink)
Azzy Mod-O-Rator Join Date: Mar 2006 Location: Finleyville, PA	Thus a great argument for the Fairtax. But still... they register you for this, and next the states are going to request the info to make sure they can charge you sales tax for everything you bought online. And how can the IRS settle what was sold used and what was sold new? I thought you couldnt tax an item more than once. IRS is just one of those things that was never a good idea, and needs to go. __________________ Bryan "Azzy" Spiegel Riverside Renegade Paintball / C.C. S.V.S. Plankowner - LPPC#6 "It is my right to be uncommon—if I can. I seek opportunity—not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me. I want to take the calculated risk; to dream and to build, to fail and to succeed. I refuse to barter incentive for a dole. I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of utopia. I will not trade freedom for beneficence nor my dignity for a handout. I will never cower before any master nor bend to any threat. It is my heritage to stand erect, proud and unafraid; to think and act for myself, enjoy the benefit of my creations and to face the world boldly and say, “This I have done.” - Dean Alfange

04-16-2007, 04:16 PM	#9 (permalink)
sunfisher89 Illusion owner Join Date: Mar 2006 Location: Downingtown, PA	It almost makes sense for people making a living with a store on ebay selling new items. But for everything else, it's kinda of like having to pay taxes on a yardsale. That just doesn't make any sense. __________________ My MCB Gallery

04-16-2007, 04:09 PM	#8 (permalink)
Christian Nelson MCB Member Join Date: Apr 2006 Location: Wisconsin	Tax is there because they have more guns than you do. Simple as that. They can charge what they want because, they be the IRS, and for whatever reason, due prosces, and rule of law don't apply to them. I can't outgun them, and I can't win a court fight against them, so I might as well just try not to be noticed, and if I am, just pull out the checkbook. What else is there to do? If the mugger totally has the drop on you, and you are fairly confident he will let you go when you pay up, just pay the dude.

04-16-2007, 05:06 PM	#10 (permalink)
Christian Nelson MCB Member Join Date: Apr 2006 Location: Wisconsin	If you don't make a profit, you don't pay tax. People who own used goods stores pay tax on those goods if they make a profit. I think they are getting after people making a living or even suplimenting thier income via Ebay. Who knows, maybe this will get rid of the ebay businesses. I know I am tired of stuff that is the same if not more expensive than retail stuff that is everywhere on ebay thesedays. I liked it back when it was a bunch of people cleaning out thier garages, and throwing stuff up for sale. I'd be all over a site that didn't allow anything but that sort of stuff.