![[H]ard|Forum](/styles/hardforum/xenforo/logo_dark.png){kind=logo}
![Zarathustra[H]](https://cdn.hardforum.com/data/avatars/m/9/9298.jpg?1677728934){kind=avatar}
Lol, maybe pay attention to what has been going on and the new irs rules.
Uh, look up the irs rule changes. They were supposed to start for 2022 taxes but got pushed back. Also, you probably don't have to pay taxes if you can prove you didn't make more than you purchased a product you sold. But, that isn't for PayPal to decide so they send what they send.
The cnbc link makes it sound like you only need to worry about this if you make income from your sales (if you're selling old stuff your generally not making any income). Not clear if you still need to report it somewhere though?
Ebay owns Pay Pal, you can't run!
This. Ebay and Paypal got a divorce. But it's not your fault! They both still love you(r money).
This. Ebay and Paypal got a divorce. But it's not your fault! They both still love you(r money).
Ebay is fking BS now as a seller, you have to link a checking account to get paid. No fking way, Ebay. My days as a seller there are over. And THAT is even on top of all the scammer bastards.
I don't book my face, so no FB marketplace. And no Craigslist, I don't want to get shot or scammed. I sell a couple things on here now and then, but some stuff doesn't move. SIGH I guess Reddit is next? I'm scared
As far as I know capital gains is only for items sold within a year of buying them. I'm in the process of doing my taxes and I sell a fair number of items on eBay, not for business or profit but personal items I've purchased. As an individual, items sold at a loss or not at a profit are not taxable. Items sold for profit are. My understanding is unless you are a business, you cannot use losses to offset gains, which makes some sense since you would expect personal items to depreciate while a business likely doesn't want to deal in selling stuff for a loss. Most of the stuff I buy at this point fortunately has an easy to find online receipt, but I do have to do per item breakdowns of what I purchased and then sold, and individual profits, at least for eBay. It's not as bad as it sounds, but I will probably make a spreadsheet for my 2023 purchases to get ahead of next year's taxes. While eBay does not know what you paid, they give you a nice spreadsheet including order totals, how much you paid in fees, and how much you paid in shipping costs to simplify things.I found this.
https://www.irs.gov/pub/taxpros/fs-2022-41.pdf
Which uses slightly closer to real English to explain things.
Sounds like unless you sold for a profit, you can just disregard these forms. if you did sell for a profit though, you have to report them as capital gains on form 8949. At least that is my non-legal interpretation.
Apparently you can not report selling at below purchase price as a loss.
What a shame. Would be hilarious to report the sale of used video cards as a tax shelter.
I'm in the same boat. Only use ebay as a LAST resort to sell anything. As such I've got a pile of parts sitting around that I really should get rid of and I haven't sold anything in a looooong time. If it weren't for this place I wouldn't even know heatware existed and I haven't sold anything online since it's been a thing.
Paypal does it now for anything over $600 when you do goods and services. That is the reason. Everything else or if its sent F&F there is no social required. Thats why I stopped doing paypal goods and services if I sell shit here. Not worth it.
Q7 at the bottom of page 3 is a real peach. Basically, it says that if you sold two sets of concert tickets, one for a gain and one for a loss, you have to pay taxes on the gains for one set, but you can't use the loss on the second set to offset the gains. By that token, you can't consider all of your sales for the year in their totality. For example, you could make a $500 profit on one item and lose a total of $1000 on everything else and you would owe taxes on $500. As a business, you would have a $500 loss. As an individual, you effectively have a $500 gain. So, you are treated worse than an actual business. Heads I win, tails you lose.I found this.
https://www.irs.gov/pub/taxpros/fs-2022-41.pdf
Which uses slightly closer to real English to explain things.
Sounds like unless you sold for a profit, you can just disregard these forms. if you did sell for a profit though, you have to report them as capital gains on form 8949. At least that is my non-legal interpretation.
Apparently you can not report selling at below purchase price as a loss.
What a shame. Would be hilarious to report the sale of used video cards as a tax shelter.
Partially true...if you sold as a business, you would also be on the hook for self employment tax.
Literally always.
yeah it is just important to remember that unless it's for a profit, taxes aren't owed.
There is a huge effort in proving it was a loss, so many will give up and take the hit, the irs is counting on it.
You forgot the tax fee on the taxes paid.
Zarathustra for prez! I'm fine with an income tax, but not getting taxed everywhere!
You forgot the sales tax charged on a restocking fee when merch is returned! :-P
And if you live in California, we have fees too. Battery disposal fee, mattress disposal fee, electronic disposal, television/moiitor disposal fees, and etc etc.. Does the government actually offer easy access to dispose of waste after they collect the sales fee? Of course not.
