ebay 1099 statements are coming

[HP2]

With more and more sales migrating to online stores and more brick and mortar places closing up that used to provided that tax collection, did any of you really think the internet would remain tax free forever?  Especially something as large and visible as Ebay?

[ledphoot]

The new rules, part of the American Rescue Plan Act of 2021

You're being rescued?...lol

Can't remember the gov't doing anything to me that felt like a 'rescue'.

paraphrasing a bit here....

Hi, I am here from the government and I am here to help......

[dodj]

The new rules, part of the American Rescue Plan Act of 2021

You're being rescued?...lol

Can't remember the gov't doing anything to me that felt like a 'rescue'.

paraphrasing a bit here....

Hi, I am here from the government and I am here to help......

Ha ha...yup 

[ek3]

so, if i sell some old race parts and they are taxable, then  i can write off the new cost and now i have a "loss" to take advantage of on my taxes?  new billet carb, 1200.00 sold for 500. loss of 700.00 ---- i sell it  on ebay, they collect state tax on the sale, but it is some how income to me? i owe taxes on my loss? i can sell enough parts to create enough loss to put me in a 0 tax bracket.... 

[ledphoot]

so, if i sell some old race parts and they are taxable, then  i can write off the new cost and now i have a "loss" to take advantage of on my taxes?  new billet carb, 1200.00 sold for 500. loss of 700.00 ---- i sell it  on ebay, they collect state tax on the sale, but it is some how income to me? i owe taxes on my loss? i can sell enough parts to create enough loss to put me in a 0 tax bracket.... 

I like the way you think

[HP2]

Sure, you can do that. You also have all the records of those purchases, you have annual tracking of additional expenses in support of the business activity engaged in with those pieces, and you also are able to show profit motive for at least 2 of every 5 years of your operation of that business and have filed this profit (loss) against your personal taxes each year of operation?

This is basic tax law stuff that's been in effect as long as I can remember.  It is exactly why when I went racing back in the 90s, it was an business enterprise with a profit motive and not a hobby. It added another set of efforts required to the already buy effort,  but if you want the write off, you have to do the homework.

[Fastmark]

If you loose money( I forgot the number of years they look at) they it's considered a hobby and not deductible. Your just out of luck dealing with the government and the IRS. They will tax the little guy. It's call " Taxation Without Representstion". Seems like this country had that problem before! Lol. If you don't teach history in schools, you forget the lessons. Instead of free enterprise and work harder than the next guy,  now they teach, everyone gets a trophy no matter who wins. The winner gets no reward and the looser gets something for his poor effort. Everyone is the same. Hmm. Communist play book right there.

[torredcuda]

Extended unemployment now looking to give free college, free day care, gievaways and huge tax incentives for businesses investing in "green" energy so they are going after the little guys to try and pay for some of it.

[HP2]

When I was racing as a business back in the '90s, I had to show profit at least 2 out of every 5 years for it to be considered a business.  The loophole of constant write off of hobbies as a "business loss" was ended in the 1986 tax code overhaul package (which, incidentally, also reduced the highest income tax bracket from 50% to 28% while raising the lowest income bracket from 11% to 15%).   A further tax refinement instituted in 2017 limits the amount of losses that can be claimed by a non-corporate entity to no more than $250k per year, while corporations didn't have the same limits applied to them.  You can do your own search to see what political parties were in power that implemented these changes.

We do have representatives. Unfortunately, the vast majority of them put party before constituent concerns. While one party had seemed to put middle American concerns first for many years (despite getting considerably off track lately), the other similarly got off track the complete opposite way and seem to think that constant deregulation is best applied to large corporations and wealthy individuals ahead of private citizens.   

Since I have kids still in school, I can definitely confirm that they are taught history. Of course they cover 240 years in a single academic year, so there is not a lot of detailed provided to a lot of the why and wherefores, but they do get an overview.  They also learn that at team try-outs, not everyone makes the team and there is no consolation prize for trying. Teams strive to win, period. School, district, regional and state competitions are exactly that, competition. You make it or you don't. Maybe in elementary school participation was rewarded, but that all goes to the wayside as they get older and by middle school, its competition.

Funny thing about education, 150 years ago no one needed anything more than grade school knowledge. 100 years ago, things were becoming so complex that at least a high school education  became necessary for most people. I think its safe to say by the latter half of the 20th century, things had progressed to a point where specialized trade education or higher academic education had became necessary.  As society has continued to evolve, so too should the level of education we provide children so they can become functional within the society we have created. Wouldn't we all benefit by making sure those around us that keep the wheels of society turning are knowledgeable about their business, their government, and the world around them? Which should certainly include understanding a wide range of e-commerce and the variety of regulations, requirements, and loop-holes available to someone engaging in that type of work.

[ledphoot]

There's nothing to stop you from having many failed businesses in your lifetime.

[HP2]

Nope, there is no limits on failure. Anyone is welcome to try and fail as often as they want.  Similarly, anyone can game the system in a manner that best benefits themselves.  However, in the process of playing with the ragged edge of rules, don't begrudge others who are attempting similar sorts of games for their benefit.

[Mopsquad]

I wonder if the swap meet numbers will come back at least a little because of this.