The IRS delays the $600 eBay/Paypal taxation limit...

[Nesse1]

IRS delays tax-reporting rule on Venmo, PayPal payments over $600

A controversial new tax-reporting policy involving payments over $600 on e-commerce platforms like eBay and Etsy will be delayed by one year, the IRS said.

www.foxbusiness.com

I'm extremely happy about this, since I've sold several thousand dollars of stuff on eBay this year. Life is GOOD!

 

[Ischgl99]

Hopefully permanently delayed!

 

[mmcmdl]

I'm extremely happy about this, since I've sold several thousand dollars of stuff on eBay this year. Life is GOOD!

I just saw this on CNBC .

 

[mmcmdl]

Hopefully permanently delayed!

Really ! Anything sold on the bay they take 15% off the top including the shipping costs . If it's not needed crap it's not an issue as I just want it gone . But with big ticket items these fees add up . I just add 15% to the Buy it Now price and sit back and watch and things do sell .

 

[stupoty]

Really ! Anything sold on the bay they take 15% off the top including the shipping costs . If it's not needed crap it's not an issue as I just want it gone . But with big ticket items these fees add up . I just add 15% to the Buy it Now price and sit back and watch and things do sell .

Good point , one hopes that ebay isn't being allowed off it's tax whilst all the users get stiffed with fees and tax !

(ra ra ra and let me tell you )

Stu

 

[NCjeeper]

Excellent. Made no sense to go after the little guy when there are way bigger fish out there.

 

[mmcmdl]

Excellent. Made no sense to go after the little guy when there are way bigger fish out there.

Just sold a set of tapping collets today for $85 . What I got all said and done was $64.67 after all the BS .

 

[Shotgun]

I disagree. It does make sense. It's the logical conclusion to "income" tax. There are people who run a full-time business of selling on eBay, all the way down to me maybe selling $500 worth of stuff over a decade. At what point do you make the cut from "income" to "just clearing out the barn"? The IRS is already all up in your business, so why is a $600 cut-off any less valid that $6,000 or $60,000? Why shouldn't I be forced to report the $125 I made off of selling some shell mills over the past week, when I'm forced to become an account next April 14th?

The same applies to local governments shutting down children's lemonade stands (which has happened), because they don't have a valid business license. It's dumb. But, it makes complete sense from a robotic enforcement of the law perspective.

 

[Provincial]

The $600 threshold probably came from the long-standing rule for paying non-employee compensation. Business had to report paying anyone for labor or services (but not goods) above that amount within the tax year. It was intended to ensure that the payee would report it on their income tax.

At the time it was introduced, $600 was not a small amount of money. As inflation grew, it became a paltry amount, effectively so small that the reporting is probably overwhelming the IRS. Now the IRS is raising the reporting threshold to $5,000 for 2024. This will probably exempt many of the people who dabble in Ebay sales.

On another forum, a fellow found an old glass insulator at a garage sale. He put it on Ebay, and last minute bids raised the sale price to $3,684.00. I don't think he is complaining about the auction fees!

 

[Shotgun]

Haha! So the cutoff isn't logical. It's practical.
When do you stop squeezing the fruit? When it cost me more to squeeze harder than the juice I get.