New Tax law in effect - eBay & others - Thanks Joe

[TRDxB2]

Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales. The new tax reporting requirement will impact your 2022 sales and taxes that you file in 2023—it will not apply to your 2021 sales and taxes that you file in 2022. So if you happen to sell on eBay, Facebook etc as you approach the limit you will be asked to provide you social security number (they may even with hold funds due you if you exceed the limit and haven't complied.
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This should not cause reporting part sales on the Forum paid by PayPal to Family/Friends, cash, or check. Car sales are liable to be captured as a result of State registrations.
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Now a good practice is to put a Credit Freeze on yourself in each of the primary credit reporting agencies. Its free
Learn more at https://consumer.ftc.gov/articles/what- ... aud-alerts
How will these freezes work? Contact all three of the nationwide credit reporting agencies Equifax , Experian , and TransUnion . If you request a freeze online or by phone, the agency must place the freeze within one business day. If you request a lift of the freeze, the agency must lift it within one hour. If you make your request by mail, the agency must place or lift the freeze within three business days after it gets your request. You also can lift the freeze temporarily without a fee.

[tdump]

Sad, very sad that this was allowed to happen. Used items have already had taxes paid on them when they were purchased new. Should not be taxed again.

[Mark Gregush]

No different than paying sales tax on the transaction at an antique or 2ed hand store.
Sorry I was thinking sales tax, me bad!
Depending on your state's requirement reporting level, people selling in Antique Malls or some craft type setting, could have been getting a 1099 anyway.

[TRDxB2]

No different than paying sales tax on the transaction at an antique or 2ed hand store.

Ohhhh its much different....
This isn't a sales tax- its a TAX on INCOME. Say you sell some stuff on eBay not as a business but to offload some of your T parts and other items you no longer need. During the year you sold 50 items ($25 ea) and netted $1,000 after all of eBay charges. eBay will send the IRS and you a 1099-K
That $1000 needs to be reported as INCOME and instead of paying whatever your State sales tax %, you will be charged the % of whatever the income tax bracket you fall in. In fact it could even kick you into a higher bracket. The previous threshold was $20,000 and at least 200 transactions
So where do you get to deduct the cost of the items - ask your tax consultant to see if they know This does not affect money transfers to Family&Friends, like we do o n Form sales.

[Henry K. Lee]

Oh and don't forget..., they are going after flea markets too. Yes, no joke. So now after the one on our mountain closes (6 months down the road), the closest one is 30 miles away. At gas prices, not worth it.

Hank

[Bryce S.]

Oh and don't forget..., they are going after flea markets too. Yes, no joke. So now after the one on our mountain closes (6 months down the road), the closest one is 30 miles away. At gas prices, not worth it.

Hank

I'm genuinely curious, how would they even begin to try to tax that? The only way I could envision them even knowing if someone was selling there was if the location that rents the booths required the vendors to report sales....

[Henry K. Lee]

You just hit the nail on the head.., more than one time use to sell items.

Hank

[TXGOAT2]

It's past time to repeal the "Sixteenth Amendment". You folks who live in income tax states need to do away with them.

[Mark Gregush]

In Oregon for state income tax (one of 4 non sales tax states), it has been at the $600 level for a long time. If you sell your antiques at a mall/consignment type setting, you can get a 1099. Some crafters fairs that operate like a market, where the vender brings their items, but are rang up by the operators you can get a 1099.
Unless something has changed, at Hershey, unless you file for exempt paying sales tax, they could use the amount reported to generate a 1099.

[Bryant]

[Mark Gregush]

The changes were passed before the current sitting President.
117-2, amended this de minimis amount to $600, with no minimum number of transactions, effective for calendar years beginning after Dec. 31, 2021

[Steve Jelf]

Presidents don't make laws. Congress does that. Article 1, Section 1. Junior high civics.

[Gene_French]

Junior High Civics?
i missed the purpose of that class i would guess ... i had thought that civics was to teach a student the process and purpose of government and to instill a due respect for the individuals involved and the offices of that government ... instead i see so many underhanded and backdoor dealings in the " politics " involved in our government, i see too many agents of our government that apply their personal agenda to their position and in effect cause their "policy " to be viewed as "LAW" ... i see a government that has grown beyond a sustainable level , and is seeking any means of sustaining that existence ... a parasite that is intent on killing it's host ...it is not so much what we pay as our tax , but what that money used for that is a disappointment to me ... we are asked to fuel an industry ( government ) that is at it's very best 60% efficient ... how many of us would keep an employee who was only 60% efficient ? i oppose any additional tax's because i do not want to fund this parasite ... our government inaction ( yes i did spell the word correctly ) always an optimist ...Gene French ( posted 9:42 am 6/6/2022 )

[ThreePedalTapDancer]

The target plan is to require all sellers at swap meets or flea markets to provide tax ID number to gain entry. They want the occasional seller excuse to go away.

[JTT3]

Steve, you’re right if you’re thinking that Congress passes bills to become law but unless the Congress overrides a veto of the President the only person that can make a Bill a law is the President. In addition the President and only the President can make an executive order that is treated like a law by his or her discretion. Congress can only make & approve Bills to be presented to the President for his signature that makes it a law or a veto which then would through it back to Congress for an override or to sit in limbo. At least that’s what we were taught in elementary school. So I’m going back to looking at codes for Brewster Green for my model T.
In the famous words of Mongo, “ Don’t know, Mongo only pawn in game of life”

[RajoRacer]

This should be in the "Off Topic" shouldn't it ?

[Mark Nunn]

Bills can become laws without a presidential signature or veto override. Article I, Section 7 of the Constitution.

[JTT3]

Mark if you’re talking about the 10 day rule, you’re right with the understanding it still involves The President to choose to do nothing.
As far as this thread location, IMHO It could go either way. If you disregard that this concerns members & nonmembers that sell/buy model T parts here and various other places then perhaps. However the information provided does help us understand what we are responsible for in the selling & buying of model T parts & may effect a model T persons decision to buy or sell. I would add that keeping a record of things you’ve bought and the total price paid for the item now & in the future would be the better part of discretion.

[John Codman]

Sad, very sad that this was allowed to happen. Used items have already had taxes paid on them when they were purchased new. Should not be taxed again.

The fact that taxes were paid when new is irrelevant. It is called a sales tax for a reason; it is a tax on the sale. You have to pay a sales tax on a used car. I'm not a huge fan of sales taxes, but the law is what it is. BTW: My home state (Massachusetts) does not tax internet sales unless the seller has a brick and morter location in the state.
Like most people, I do not like taxes, but the reality is that if we want roads and schools, prisons and fire departments, they have to be paid for somehow.

[Pep C Strebeck]

This should be in the "Off Topic" shouldn't it ?

I agree, just like it was in 2019 when it was being discussed before.

Link to the previous discussion: viewtopic.php?f=16&t=7125&p=55379&hilit=ebay+tax#p55379

[1912touring]

...........

[Retro54]

This should be in the "Off Topic" shouldn't it ?

You're damn right. This crap is ridiculous. Is this a Model T forum or H&R Block? People who post crap like this devalue a great forum. Someone please make it stop...

[Tourabout]

It’s valuable information to me bub.

[Tourabout]

It’s valuable information to me bub.
It’s the foul language that you use that devalues the forum. uncalled for.

[TXGOAT2]

The application of Monkey Tan Floor Finish may reduce those pesky stinging lizard incursions in bedroom and bath areas.

[Nv Bob]

Ebay collected Tax on everything I've sold this year
Well over there limit bit yet to be asked a thing.
Between there fees paypal fees I gone back selling via group forums and there trying figure screwing these up to
Wonder if my tax exempt number may come into play somewhere

[rich from pec]

back in the 70's the state of Pa. was collecting tax at hershey

[rich from pec]

back in the 70's Pa was collecting tax at hershey

[Henry K. Lee]

This is far from an "Off Topic" item as it directly effects the hobby beyond words. Those whom do not like it, do not click and read. Your other options for parts are slowly going away.., get involved and quit burying your head in the sand.

When the 18 Amendment was made into law, personal income tax was instituted to offset the lost in hard liquor taxes of a lost to the US government of the tune of $6 million. With its repeal did they ever do away with that tax? Hell no.., follow the money of politicians!

Hank

[Retro54]

...............

[Mark Gregush]

"Ebay collected Tax on everything I've sold this year
Well over there limit bit yet to be asked a thing.
Between there fees paypal fees I gone back selling via group forums and there trying figure screwing these up to
Wonder if my tax exempt number may come into play somewhere"

The only Tax eBay has collected is the sales tax as now is required by las for the buyers city county or state. No, tax exempt would only comes into play for buying, not selling.