Ebay and PP users must file tax forms beginning in 2011 - discuss

[jonny88]

So you're basically having to pay taxes on something 3 times.

1. You pay tax on the money you've earned to buy the item.

2. You pay tax when you buy the item.

3. Now you pay tax on the money that you get for selling the same item.

Yup......that seems fair.

just the goverment bending every one over

 

[Blackthornone]

That's true...... I've heard of people that could make a living off it. I think the $20,000/year is a good limit. Many people don't make that much, only do it as extra cash on the side (which includes me) But it's interesting to hear this. I figured it would eventually happen.

I think the amount you sell should be irrelevant. You could sell millions of dollars in items, but if you sell them at or below what you paid, there is no profit, and hence, there should be no tax. If you had to pay taxes on sales that you made which were for beneath what you paid, that would be triple taxation, or doubly taxing your wages.

 

[BadMoon]

So you're basically having to pay taxes on something 3 times.

1. You pay tax on the money you've earned to buy the item.

2. You pay tax when you buy the item.

3. Now you pay tax on the money that you get for selling the same item.

Yup......that seems fair.

Hmmm seems like a different opinion though when it comes to flippers

 

[BadMoon]

Actually I think this tax would be fair, if it was a tax on profits. Additional profits equal additional tax. However, people should only have to pay any taxes on any profits they make here. If they sell items at or below what they paid for them, they shouldn't have to pay any tax, regardless of how much they sell. The income tax is unfair, because it taxes WAGES, and THAT is double taxation, because the money used to pay those wages was already taxed. If only real profits from ebay were taxed, then that would not be triple taxation.

What the ____ planet are you from?

 

[Blackthornone]

What the ____ planet are you from?

Which part do you object to?
You do know that the income tax is double taxation, don't you? A company makes a product and sells it. They then use the money they got from the sales of said items, which they paid tax on, to pay their employees wages. When an employee pays income tax on wages, that is taxing the same money twice. Labor is not a profit, and so it should not be taxed. The income tax didn't always exist, you know.

 

[devilof76]

You know what you can do with your anti-profit tax-gouging schemes?

With the economy worsening, more and more people are likely trying to make ends meet...The Internal Revenue Service is fixing to wield a big new weapon to get its cut.

I love that. This time, I say we throw them in the Harbor instead of the tea.

 

[RoboDad]

Nope. It will be passed on to the buyers.

And how, exactly, will sellers do this?

 

[devilof76]

They'll charge more; same as any company would.

Of course, raising prices has never exactly been a blessing for small business owners, so it's not a viable option. But where else is the difference supposed to come from? Unless the expectation is that they should be happy netting less money.

And they should, right? What's evil is making profits. You should be punished for everything you net above cost. The purpose of a seller is to serve the buyer. The seller can't expect to gain. That would be immoral and unethical. Tax vampires are saving business owners from themselves...

 

[RoboDad]

Ebay sellers can't "charge more" for standard auctions. The bidders decide the final value of an item, not the seller. The only place where eBay sellers can set the price is on fixed-price listings, and most smaller sellers (those above the $20,000 annual transaction threshold, but nowhere near "earning a living" from eBay) don't run many fixed-price listings. They mostly run standard auctions.

Don't presume that, simply because someone is now on the IRS radar for eBay transactions, that they are a "company".

 

[devilof76]

I'm just playing with the IRS's presumptions. If you are making money whatsoever, you are as guilty of 'profiteering' as any multi-national corporation, and therefore you must pay for the 'privilege' of reaping (nice Death connotation there) profits.

And that is an excellent point about auctions. I guess the IRS just doesn't give a damn about you. Then again, that's not their job. Congress makes the laws governing taxation, and Congress 'cares' about people, so long as they are the people being given the money stolen in taxes. If you are paying the taxes, you are the villain, and who in their right mind would give a damn about you (or your wife, as the case would be)?

 

[Vader AL]

So i'm guessing you can write off expenses too such as paper, ink, internet costs, phone, mileage driving to ship items, part of your mortgage/rent for office space, etc. I guess not because you'd have to file as a business....?

less money for people to spend in the economy and just giving to the gov't to waste.

 

[devilof76]

Oh, but the government will use that money to create more government jobs that will require more taxes to payroll them.

 

[dr_teng]

I've been paying taxes on Ebay profits for years so this isn't exactly a big shock. I'm surprised it wasn't enforced earlier in the US, considering how much money goes through Paypal/Ebay.

 

[316what]

And they should, right? What's evil is making profits. You should be punished for everything you net above cost. The purpose of a seller is to serve the buyer. The seller can't expect to gain. That would be immoral and unethical. Tax vampires are saving business owners from themselves...

Someone has been spending too much time "debating" with BT1.

 

[316what]

Ebay sellers can't "charge more" for standard auctions. The bidders decide the final value of an item, not the seller. The only place where eBay sellers can set the price is on fixed-price listings, and most smaller sellers (those above the $20,000 annual transaction threshold, but nowhere near "earning a living" from eBay) don't run many fixed-price listings. They mostly run standard auctions.

Sellers will increase "handling" fees just as many did when the Ebay/PP fees have been raised in the past. Where there's a will, there shall be a way.

 

[316what]

So i'm guessing you can write off expenses too such as paper, ink, internet costs, phone, mileage driving to ship items, part of your mortgage/rent for office space, etc. I guess not because you'd have to file as a business....?

Not always. If you itemize your taxes you can claim certain "work" related expenses...work-from-home people do it every year.

All of the above items, and more, can be deducted if you itemize.

 

[316what]

Oh, but the government will use that money to create more government jobs that will require more taxes to payroll them.

No they won't. They'll use that tax money to fund another social/economic program that will fail in the end AND which will require another new tax to repay.

 

[dr_teng]

No they won't. They'll use that tax money to fund another social/economic program that will fail in the end AND which will require another new tax to repay.

Lots of social/economic programs work great when the anti-government party isn't actively sabotaging them, see : every other first world country on the planet.

 

[316what]

Lots of social/economic programs work great when the anti-government party isn't actively sabotaging them, see : every other first world country on the planet.

True and many work in the US.

I was referring specifically to these two failures: Cash for Clunkers and the New Homeowner programs.

 

[Kibishii]

Interesting. Makes sense though as ebay is a major source of revenue for many people.

I don't have a problem with this. If people are running a company via online, they should have to pay taxes like storefront merchants; I am sure alot of people will just find more loopholes around it. Personally, I think it should be 10K...anything to help get us out of the huge deficit that our country is in.

Lots of social/economic programs work great when the anti-government party isn't actively sabotaging them, see every other first world country on the planet.

I agree 100%, and I am not a democrat. So many people _____ and moan about taxes, but, depending on the state, we have about the lowest tax rate out of any industrialized nation...except Calfiornia where we have a high tax rate and still are broke as heck and our politicians have no clue what is going on. Honestly, I think people need to get over taxes and start worrying about how our government is completely gridlocked because of partisanship and how fast our national debt is growing. I know paying taxes hurts in the "here and now," but we have major, major financial problems in the near future. The "anti-government" party has fillibustered 90% of any legislation designed to fix issues to "win" and make the "pro-tax" party look like idiots. The problem is that this works in the short run and gets votes, but is just causing more problems in the long run.