Vintage IRS!
Mike Schmidt Millington, New Jersey Sent from my iPhone
On May 4, 2010, at 8:02 PM, loudeeter@aol.com wrote:
> Like Tom, I'm not a tax professional. Unlike Tom, I'm also not a
> lawyer! But, I file enough tax forms to know that what this means
> is that you may have to file a schedule D if you sell on Ebay and
> treat it as a hobby. If you are a business, you will likely be
> filing business tax forms. If you haven't filled out a Schedule D,
> you can find an example at http://www.irs.gov. As Tom says, you will need
> to show dates of purchase, cost of purchase, date of sale, and price
> of sale. Price is the amount you receive less shipping expenses.
> You can try to charge off your packing expenses, but unless it is a
> large item with specific packing receipts, you are better off just
> counting the charges you can verify with receipts. You could also
> probably (see a tax professional if you have questions) keep good
> books and just report your profits as "other income" and skip the
> Sch D, but when the IRS crosswalks that 1099, it will be harder for
> them to correlate.
>
>
> What this also tells me is that I might want to short EBAY. :) I
> think this will seriously impact their business. One more case of
> Big Brother closing the loopholes. Let's home Big Brother doesn't
> start monitoring sites like CR and inquiring about sales when you
> offer something to the list. Lou Deeter, Orlando FL USA
>
>
>
>
>
> -----Original Message-----
> From: Thomas Adams <thomasthomasa@yahoo.com>
> To: classicrendezvous@bikelist.org; W PAUL PATZKOWSKY <oldtrikerider@q.com
> >
> Sent: Tue, May 4, 2010 5:35 pm
> Subject: [CR] eBay 1099s coming in 2011
>
>
> Ahh, it looks like eBay is supposed to start sending 1099s for the
> 2011 tax
> year. If you sell on ebay, start saving information on how much you
> paid for
> items and how much ebay, paypal and the shipping service charged you
> in fees for
> your 2011 return.
>
> http://ebay.about.com/
>
> Thomas Adams
> Manhattan, KS USA
>
> --- On Tue, 5/4/10, Thomas Adams <thomasthomasa@yahoo.com> wrote:
>
>
> From: Thomas Adams <thomasthomasa@yahoo.com>
> Subject: [CR] 1099, Income tax and eBay Re: Ebay - Another issue
> To: classicrendezvous@bikelist.org, "W PAUL PATZKOWSKY" <oldtrikerider@q.com
> >
> Date: Tuesday, May 4, 2010, 4:27 PM
>
>
> Dear Paul:
>
> DISCLAIMER: I am not a tax professional and this is not intended as
> tax advice
> for anyone in particular. Consult with a pro if you have questions.
>
> I don't think you would get a 1099 from the IRS. The 1099 form is
> basically a
> report of money paid from the person who paid you, with a copy to
> the IRS. If
> that money does not subsequently show up on your tax return for the
> year, the
> IRS may come calling. Usual 1099s are from financial institutions
> for interest,
> dividends and cap gains, and from persons who hired you as an
> independent
> contractor. The dollar threshold used to be a round $600 for
> contractors and
> $10 for financial institutions for interest, dividends and such.
> Failing to
> send a 1099 if the IRS says you should will also get you in trouble
> with the
> IRS.
>
> In the auction context, it would have to be eBay issuing the 1099s,
> if you sold
> above X dollars in a year. Then on your taxes you would deduct any
> transactional costs and the original cost of the item(s) to see if
> you made a
> profit, and owed tax. I don't know if the IRS has tried to require
> ebay to send
> 1099 forms to big sellers. Profit or loss from hobbies that are not
> a major
> source of income are usually not required to be on your tax return,
> on the
> assumption that most people lose money on hobbies. But if you sell
> several
> Herses of California Masi's in a year, it wouldn't surprise me if
> the IRS
> decided to ask what your profit was on the sale.
>
> Tom Adams
> Manhattan, KS USA
>
> --- On Tue, 5/4/10, W PAUL PATZKOWSKY <oldtrikerider@q.com> wrote:
>
>
> From: W PAUL PATZKOWSKY <oldtrikerider@q.com>
> Subject: Re: [CR] Ebay - Another issue
> To: classicrendezvous@bikelist.org
> Date: Tuesday, May 4, 2010, 3:39 PM
>
>
>
> I've already sent a personal reply to Greg regarding the original
> question,
> basically covering some of the same points that others have
> addressed. I'm
> curious about something else, however. Has anyone ever recieved a
> 1099 or
> similar document from the IRS for Ebay sales?
>
>
>
> Paul Patzkowsky
>
> Longmont, Colorado