EBAY QUESTION

[wcjohnson]

How much do you need to sell on Ebay before the send you a income tax sheet.

[cincycardshows.com]

Paypal sends you a 1099 when you cross 200 transactions and $20,000 in sales

[hche]

It's Paypal. So even payments you get off ebay counts. $20,000 AND 200 transactions per calendar year.

[abcsports]

I thought it is 200 transactions OR $20,000.00 (paypal receipts - not only ebay transactions).
I could be wrong.

[bigzig]

Originally Posted by abcsports

I thought it is 200 transactions OR $20,000.00 (paypal receipts - not only ebay transactions).
I could be wrong.

Nope. Its 20k AND 200 transactions...doesn't mean you don't have to pay taxes on first 20k though.

[wcjohnson]

What if you reinvest the money you earn do they still charge you income tax. Thats crooked because its rarely all profit.

[jlzinck]

Originally Posted by wcjohnson

What if you reinvest the money you earn do they still charge you income tax. Thats crooked because its rarely all profit.

Please tell me you are not more than 17. Pretty please?

Paypal does not "charge you income tax"

[monkeymcgee]

Sometimes I feel like I'm seeing a glitch in the Matrix with these threads.

[pac213up]

Has this been discussed lately? Thought I saw a post or two on the subject.

[monkeymcgee]

Originally Posted by pac213up

Has this been discussed lately? Thought I saw a post or two on the subject.

I can't wait for when people actually start doing their taxes and/or when they start getting 1099s from PayPal.

[Bob Loblaw]

Originally Posted by wcjohnson

What if you reinvest the money you earn do they still charge you income tax. Thats crooked because its rarely all profit.

Have you ever done your own taxes before?

[BOOMER7]

are the transactions counted by buying or selling only?

another words
let's say you have 150 transactions as seller
and 50 transactions as buyer is that 200?

[Frankp2311]

BANG!!!!!!

[tajikey]

Originally Posted by wcjohnson

What if you reinvest the money you earn do they still charge you income tax. Thats crooked because its rarely all profit.

[wcjohnson]

Man people are rude on here. I have paid taxes for many years and have purchased several rea estate properties. If you reinvest money before 6 months in washington state you are not taxed the 27 percent. If you pocket it u will be taxed. I had an honest question I seriously dont understand theattitudes on here. I thought this was one of the only respectable sites. I guess it can be a ruined experience by a couple of punks

[premium1981]

Originally Posted by wcjohnson

Man people are rude on here. I have paid taxes for many years and have purchased several rea estate properties. If you reinvest money before 6 months in washington state you are not taxed the 27 percent. If you pocket it u will be taxed. I had an honest question I seriously dont understand theattitudes on here. I thought this was one of the only respectable sites. I guess it can be a ruined experience by a couple of punks

Ignore the people who enjoy putting others down. Here is the rundown (as I understand things). Because of new laws and such, paypal is now required to REPORT revenue when your totals reach 200 transactions AND $20,000. So for example, if I sell 1,000 items and end up with $25,000 in sales, I will get a 1099 at the end of the year that has the $25,000 number on it. What I do with that is up to me. Paypal just reports it. When filing taxes, any good accountant should be able to make most, if not all, of that money disappear legally. The only way I see people actually paying taxes is if they do not know what they are doing, or if they have made huge amounts of PROFIT above and beyond all purchases, supplies, fees, etc. And when I say above, I mean way above. Anything and everything that is related to the hobby/business that is being reported can be treated just like any other business with write-offs and deductions. The key to it is just knowing what you are doing, or have a tax preparer that knows what they are doing. And as a side note, piece of advice, not all tax preparers know what they are doing.

[wcjohnson]

Originally Posted by premium1981

Ignore the people who enjoy putting others down. Here is the rundown (as I understand things). Because of new laws and such, paypal is now required to REPORT revenue when your totals reach 200 transactions AND $20,000. So for example, if I sell 1,000 items and end up with $25,000 in sales, I will get a 1099 at the end of the year that has the $25,000 number on it. What I do with that is up to me. Paypal just reports it. When filing taxes, any good accountant should be able to make most, if not all, of that money disappear legally. The only way I see people actually paying taxes is if they do not know what they are doing, or if they have made huge amounts of PROFIT above and beyond all purchases, supplies, fees, etc. And when I say above, I mean way above. Anything and everything that is related to the hobby/business that is being reported can be treated just like any other business with write-offs and deductions. The key to it is just knowing what you are doing, or have a tax preparer that knows what they are doing. And as a side note, piece of advice, not all tax preparers know what they are doing.

Thanks for the rundown man.

[monkeymcgee]

Originally Posted by wcjohnson

Man people are rude on here. I have paid taxes for many years and have purchased several rea estate properties. If you reinvest money before 6 months in washington state you are not taxed the 27 percent. If you pocket it u will be taxed. I had an honest question I seriously dont understand theattitudes on here. I thought this was one of the only respectable sites. I guess it can be a ruined experience by a couple of punks

This question has been asked many times, that's why people get an attitude about it.

If you want the real deal, check out the link in my sig.

[XL5]

Originally Posted by wcjohnson

Man people are rude on here. I have paid taxes for many years and have purchased several rea estate properties. If you reinvest money before 6 months in washington state you are not taxed the 27 percent. If you pocket it u will be taxed. I had an honest question I seriously dont understand theattitudes on here. I thought this was one of the only respectable sites. I guess it can be a ruined experience by a couple of punks

You tried to apply a real estate tax dererral to the sale of cards on eBay. It probably sounded funny to some people.

[premium1981]

Originally Posted by XL5

You tried to apply a real estate tax dererral to the sale of cards on eBay. It probably sounded funny to some people.

It shouldn't be funny, because you can do the same thing with cards.

[XL5]

Originally Posted by premium1981

It shouldn't be funny, because you can do the same thing with cards.

Would you care to give an example?

[premium1981]

Originally Posted by XL5

Would you care to give an example?

If you are not familiar with tax laws, then maybe you should not try to make others feel bad about the same lack of knowledge.

It all depends on how much effort you choose to put into it, and if you want to classify it as a hobby or business. Either way though in its most simplistic form, Sales-Expenses = Profit. Profit is what you are taxed on. So to eliminate or reduce the profit, you need to increase those expenses. If you appear to be $1000 ahead this year, purchase another $1000 of "inventory" to make your bottom line go back to $0. Of course, that means you will have that much less to put towards next years gains or losses. It is the same principle of any business.

Again, this is all dependant on how you choose to report this income, and if you want to go the extra mile and possibly make it an actual business. If you do that, then the sky is the limit in regards to tax benefits.

There is a reason why GE did not pay any taxes (last year?) even though they are one of the largest corporations in the world. It is all about knowing what you are doing, and knowing where to put what numbers.

The point I was wanting to make is that people on this board should not be so quick to run others down and try to make them feel stupid. Especially when talking about something that you do not know as well as you think. All that does is make the original poster feel bad, and the responding poster looks ignorant.

[XL5]

Originally Posted by premium1981

If you are not familiar with tax laws, then maybe you should not try to make others feel bad about the same lack of knowledge.

I know what I was talking about. I was merely giving you a chance to back up what you said. You didn't. Nowhere did you make the case that a deferral like the real estate deferral is available to cards. Again, please feel free to explain how this:

If you reinvest money before 6 months in washington state you are not taxed the 27 percent.

can be applied to cards.

Originally Posted by premium1981

It all depends on how much effort you choose to put into it, and if you want to classify it as a hobby or business. Either way though in its most simplistic form, Sales-Expenses = Profit. Profit is what you are taxed on. So to eliminate or reduce the profit, you need to increase those expenses. If you appear to be $1000 ahead this year, purchase another $1000 of "inventory" to make your bottom line go back to $0. Of course, that means you will have that much less to put towards next years gains or losses. It is the same principle of any business.

Again, this is all dependant on how you choose to report this income, and if you want to go the extra mile and possibly make it an actual business. If you do that, then the sky is the limit in regards to tax benefits.

There is a reason why GE did not pay any taxes (last year?) even though they are one of the largest corporations in the world. It is all about knowing what you are doing, and knowing where to put what numbers.

At issue was using a real estate allowance to write off taxes on profits from selling cards. That is nothing like what you're describing here. And if you think a hobbiest selling cards is going to be able to do the Double Irish like GE, you're crazy. We're talking about cards here and giving practical advice, not trying to be GE or GOOG.

Of course expenses can offset gains. That was never at issue.

Originally Posted by premium1981

The point I was wanting to make is that people on this board should not be so quick to run others down and try to make them feel stupid. Especially when talking about something that you do not know as well as you think. All that does is make the original poster feel bad, and the responding poster looks ignorant.

Good advice. Heed it. All I was doing was pointing out why some may have acted in a manner the poster considered "rude." I didn't run anyone down or try to make them feel stupid. You did attempt to, however.

[premium1981]

Originally Posted by XL5

At issue was using a real estate allowance to write off taxes on profits from selling cards. That is nothing like what you're describing here. And if you think a hobbiest selling cards is going to be able to do the Double Irish like GE, you're crazy. We're talking about cards here and giving practical advice, not trying to be GE or GOOG.

Again, you are making yourself look ignorant. Ok, I will get a little more technical. What the original poster was asking was if he could "reinvest" his money like real estate. The technical term for this is doing a 1031 exchange. This is allowed to offset capital gains taxes. So if I sell a property for $100,000 that I paid $80,000 for, I do not have to pay taxes on the gains at this time. If house #2 is bought for $100,000 and sold for $120,000 the gain is now $40,000. The taxes will be paid at a later date though if a 1031 exchange is done. This could be when the next property is sold or even after death being paid by whomever it gets left to. That is the meat of it, with a lot more detail that I will not go into.

He was not speaking about "writing anything off" as you stated. He was simply asking about the comparison of reinvesting money in cards, like in real estate. I gave a simple explanation of how to do so and not pay taxes.

Originally Posted by XL5

Of course expenses can offset gains. That was never at issue.

That is exactly the issue. Offsetting gains to keep from paying taxes.

As a side note, by me saying you are sounding ignorant is not meant to be demeaning. That term gets used the wrong way in almost all of its uses. It simply means you do not know any better. By your posts, that is the case. I was simply giving him some tips and trying to help. You were not.

PS....This advise is coming from an accountant who specializes in taxes. Not from some random person wanting to hear themselves talk.

[XL5]

Originally Posted by premium1981

PS....This advise is coming from an accountant who specializes in taxes. Not from some random person wanting
to hear themselves talk.

You may be an accountant but that doesn't mean you are following along. A 1031 exchange, great. How does that help the OP asking about cards? How does it help wcjohnson who wants to use it on cards the same way he did for real estate?

Originally Posted by wcjohnson

What if you reinvest the money you earn do they still charge you income tax. Thats crooked because its rarely all profit.

Everyone was initially responding to this.

That is exactly the issue. Offsetting gains to keep from paying taxes.

"Not at issue." Meaning it was never debated. Everyone agrees here that you can offset gains with expenses.



Look, I'll yield to your expertise in the field but stay with the topic here. Practical advice for amateurs and hobbyists. I would hope anyone doing this as a business would already be accessing professional advice.

Anyone in it as a hobby or as a way to pay for the habit should probably avoid complicated tax strategies that can end up doing more harm than good.