Ebay Craiglist Sellers be warned , starting in 2011 (1 Viewer)

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lakebum431

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Good luck tracking this stuff. The IRS can't keep up with regular income. They aren't going to be able to come close to tracking these types of transactions.
 

Ramy

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Did you read the article? It is only for big time sellers. Anything over $20,000 a year and over 200 transactions a year.
 
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televisionarchives

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Aug 25, 2008
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They will track it at least on ebay. Paypal is already said they are tracking 2010 transactions. And according to radio host Clark Howard he said if you sell on ebay you better keep records no matter how much you sell. And no I don't work for the IRS. But , people who make a living selling on ebay should pay taxes.
 

HD MM

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Nov 2, 2006
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Don't you already pay taxes when you initially buy the product? Now they're going to tax it again when you sell it? That doesn't seem right.
 

televisionarchives

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Aug 25, 2008
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Don't you already pay taxes when you initially buy the product? Now they're going to tax it again when you sell it? That doesn't seem right.
You pay sales tax. Yes. But this is about income tax. Profits from Ebay and Craigslist.
 

Rey

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Feb 8, 2008
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They will track it at least on ebay. Paypal is already said they are tracking 2010 transactions. And according to radio host Clark Howard he said if you sell on ebay you better keep records no matter how much you sell. And no I don't work for the IRS. But , people who make a living selling on ebay should pay taxes.
For those who make a living on ebay yes i agree with this. anything else is over doing it. i don't want to worry if i sold my xbox or a used tire on ebay that the irs is going to bother me later about those sales. and i shouldn't have to worry. but from what i read in that article it shouldn't be the case so lets make that clear.
 

televisionarchives

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Aug 25, 2008
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What if you sell it for less than what you bought it for?
Who knows. What if you go to a lawn sale and buy an item for say $5.00 and find it's a real collectible and it sells on ebay for like $5000. It happened to someone I know. He purchased a photo album that had a whole bunch of beatles items in it . Did he report the income? He said he didn't . Should he have? Who knows? The IRS would say yes I bet.
 

Bobby

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If you are making $20,000 or more as a seller you are filing as a business. If you sell something for less than you paid for it you would show that sale as a business loss. It's very simple when you take the time to think it out.
 

televisionarchives

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Aug 25, 2008
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If anyone things I like the IRS think again. But, I have to live under the rules so many who make money on ebay should do the same.

How about this nightmare. If you ever get audited never give the original documents to the IRS agent. My wife works with someone who was audited and had to bring documents to the IRS to prove her case. The IRS agent needed time to look at them and told her to come back in 2 days. 2 days later he called her and said he needed the documents again. He lost them. She didn't have copies. So, she had to pay the difference because the IRS agent lost her documents. Scary huh?
 

Skyhi

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Sep 29, 2007
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My wife works with someone who was audited and had to bring documents to the IRS to prove her case. The IRS agent needed time to look at them and told her to come back in 2 days. 2 days later he called her and said he needed the documents again. He lost them. She didn't have copies. So, she had to pay the difference because the IRS agent lost her documents. Scary huh?
That story smells very fishy.
 

televisionarchives

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Aug 25, 2008
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That story smells very fishy.
It happened. It was over 10 years ago but it happened. The IRS does tell you to make copies. Did they back then? I don't know. Either way the Agent lost her documents and because of that he had to pay. She never fought it because she didn't have the proof . Looking back she said she should have used a lawyer to help her with the audit.

This from a tax lawyer.
Provide only copies. Don't bring original documents to the audit. If you do bring original documents, do not give them to the agent. Request that the agent make copies and give the originals back to you. Once you hand over your original documents, there's a very good chance that they will be misplaced or lost. Then you're the one holding the bag, since the IRS isn't responsible for documents lost in its possession.
 

DJ Rob

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Sep 8, 2003
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I got a big laugh from whoever just sent me an email saying that they are reporting what I sell here in the classifieds to the IRS. How do you know how much I sold and how much I just decided to keep? :D
 
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