Ebay and State Sales Tax

[OhioCanGuy]

Just had to vent a little on this issue.

Really a bummer that this has finally come to pass for many of us. Not all states are doing it, and those that live in states that are not withholding sales tax on Ebay purchases have an advantage over the rest of us.

In my state, Ohio, 7% tax is now tacked on to every purchase. On higher dollar items, this adds up quickly. Someone bidding against you that doesn't have to account for this has more leverage. Maybe it's time I finally move to Florida, as many Ohioans eventually do anyway, LOL!!

What's next, an IRS guy standing at the end of your driveway holding a clipboard during your next garage sale?

[clark]

and the tax is on purchase price AND SHIPPING

[Ctbott1]

and the tax is on purchase price AND SHIPPING

For the same reasons they charge fees on purchase price and shipping - sucks

[steve36333]

YOU need to get a sales use and resale tax exemption and give it to ebay. That way you do not have to pay sales taxes( until you resell the item ). At least thats the way it works in my state

[Belle1015]

Ebay takes there cut on the total of all three then subtracts the sales tax,Basically they are making money off the sales tax charged
More money for Ebay to take from the sellers

[menke]

35 states and counting... no politician will let that cash cow from the barn. This is just the latest way eBay was been trying to crush private/small sellers while giving massive freebies to large businesses. I'm sure there will be more to come.

[Pokey]

Which state does the taxing, the buyer's or the seller's?

[OhioCanGuy]

Which state does the taxing, the buyer's or the seller's?

Tax goes to the state in which the buyer lives. If you buy something locally, at a retail store, they charge sales tax. Many states are now wanting to do the same, on their residents, for online sales shipped into the state.

In Ohio, when you do your state taxes, they ask if you have purchased anything out of state and had it shipped into Ohio? Basically wanting you to fess up and declare it and pay the tax. I'm sure the number of people who actually do enter their online purchases on their tax form is somewhere between nil and zero. Probably a sign of things to come as online sales continue to ramp up for everything.

Amazon has multiple facilities in OH. They started charging sales tax in OH a few years ago. I get it. Massive corporation with physical space, and employees (thank you) in the state. So they can't really say they are not there and won't collect tax. What really irritates me is the hobbyist end of all of this. That's us.

With collectables, a big part of Ebay is collector to collector. The little guy. Not dealers. I won an auction on Ebay last night. Auction got stronger than I expected and in the end, I bid more than I really wanted to, to win the can. After over paying, there was another $38 is sales tax tacked on to the final price. Totally suc*s that I'm now in for another $38 on this can. Obviously it's not going to break me, but you all know what I mean.

Anyway, the rant is over. It's all good and happy collecting!

[foreigncanman]

Hopefully it will lead to a resurgence in local can shows.

[Pokey]

Thanks for the answer on that. Oregon does not have a sales tax, so I have not paid attention to all of the hullabaloo.

[oldindiapaleale]

You can always ask the seller if they will accept a check or money order instead of using paypal, especially if you know or have been buying from the seller for a longtime.
No paypal no sales tax.
However, keep in mind that the buyer is not off the hook for their state's 'use tax'.

[YooperAho]

eh! yooperaho here. BEND OVER.YOU'RE GETTING! F KED!
DOES AMIZON. WAL-MART. ECT. PAY TAX.

[Giant Beer]

Hopefully it will lead to a resurgence in local can shows.

Agreed, but don't forget about the Advertise Section here on this site. Fees are getting crazy between eBay and PayPal and now sales tax.

[OhioCanGuy]

Latest from Ebay on this subject:

https://www.ebaymainstreet.com/news-eve ... gn_1048502

Also, poking around their site, I noticed the language below. I've heard people mention the $20k selling level in the past.

By law, sellers have to declare and pay taxes on income earned from eBay sales. We recommend checking with a tax advisor to understand your responsibilities.

If you’re a managed payments seller, and have more than 200 transactions and generate more than $20,000 in sales in a calendar year, you'll receive a Form 1099-K from eBay. This information will also be reported to the IRS and your state tax authority, where applicable.

[VNV]

Does anybody know if this $20K limit is applicable to collectible items such as cans?

Latest from Ebay on this subject:

https://www.ebaymainstreet.com/news-eve ... gn_1048502

Also, poking around their site, I noticed the language below. I've heard people mention the $20k selling level in the past.

By law, sellers have to declare and pay taxes on income earned from eBay sales. We recommend checking with a tax advisor to understand your responsibilities.

If you’re a managed payments seller, and have more than 200 transactions and generate more than $20,000 in sales in a calendar year, you'll receive a Form 1099-K from eBay. This information will also be reported to the IRS and your state tax authority, where applicable.

[ConeAddict]

The first time I got hit with it a few weeks ago it was a bit of a sticker shock, 5% in wisconsin, it starts to feel like a buyers premium in a Morean Auction. I also had one of my most disappointing auction results recently too so we can probably expect to take the hit on our sales a well. Not many other options, I like the auction format as I believe people just don't like paying a fair listed price as they always feel like it must be overpriced. And lets face it, there are a ton of cans listed on ebay trying to trying to trick people into overpaying. Just have to start getting out to shows more.

[Onefineday]

Does anybody know if this $20K limit is applicable to collectible items such as cans?

It does not matter what you sell on ebay, if you top $20K and 200 sales or whatever the current limits/conditions happen to be in a year, by federal tax law ebay must send you a tax form.

[CrustyRusty]

Reviving this old thread....Just wondering what the latest dollar amount and or total number of sales before eBay sends you a form?

[oldindiapaleale]

Reviving this old thread....Just wondering what the latest dollar amount and or total number of sales before eBay sends you a form?

For 2021 it is still 200 transactions AND $20,000. Exceeding both generates a 1099 to you and the IRS.

On Jan. 1 2022 it changes to $600. That is the new minimum level that generates a 1099. Number of sales is not a factor.

Remember, any income (minus expenses and deductions) is taxable in the rules of the IRS and most all states.

[pinnacle-project]

Only $600?????? I had not heard that. That's insane. Even casually selling a few things here and there will hit that number.

[jacoby4664]

I have already quit selling on EBay. Our friends in Washington already have too much reach into our pockets and lives. I am not willingly going to give them more.

[oldindiapaleale]

Only $600?????? I had not heard that. That's insane. Even casually selling a few things here and there will hit that number.

from the internet (google 2022 $600 1099):

Paypal Changes You Should Know About
Published on July 07, 2021
If you’re selling stuff online and using payment processing services, like PayPal or eBay, to collect money, get ready for upcoming changes. The IRS now wants to know if your Paypal or Ebay sales exceed $600 a year.

Starting 2022, the federal threshold for issuing 1099-K will drop to $600 with no minimum transaction level, due to a provision in the recently enacted American Rescue Plan Act. This means that in early 2023, you could receive Form 1099-K for 2022 online sales you make via Paypal, Ebay or similar platform. And this will be the case whether you’re an occasional seller or you are operating as a business; as long as you receive $600 or more via Paypal or similar platform, you will receive Form 1099-K.

[ConeAddict]

Who wants to deal with that come tax time? Not me, tried to read something on it to see what the implications are to hobbyist and it is as clear as mud. If I am spending $5000 a year on cans and selling $3000 does that mean I owe nothing? I guess ebay got our SSN when they switched to paying directly to checking accounts.

[Onefineday]

Who wants to deal with that come tax time? Not me, tried to read something on it to see what the implications are to hobbyist and it is as clear as mud. If I am spending $5000 a year on cans and selling $3000 does that mean I owe nothing? I guess ebay got our SSN when they switched to paying directly to checking accounts.

Kindly remember that this is part of the "American rescue plan". Your additional tax contributions as trillions are spent by the government like handing out candy on the last day of October are to "rescue" America. As you doze off to sleep each night, remember the leaders of our country getting caught not wearing masks while commanding us to do so, and sleep soundly knowing the extra yoke fastened around your neck really isn't that much of an extra burden after all.