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Post by slowfreight on Dec 9, 2021 19:14:35 GMT -8
Well, it's kind of sad, but tonight I packed what will probably be my last ebay sale ever.
Been selling on the 'bay for over 15 years, through the boom years when it was the wild west, and even did one last round this fall. Sadly, while I caught that the threshold for 1099s wouldn't be $600 until next year, I did not catch that it was $1200 this year until I hard-busted the limit. I didn't even mind the sales tax, but 1099s on my hobby are too much.
Nothing to do but delete my account and move on. What sucks is that most of us won't want to sell on any platform that taxes us on our "garage sale profits." So I don't expect we'll be able to find the old, odd, out-of-production, or you-name-it thing that we as model railroaders came to depend on ebay.
As a seller I wanted to unload extra stuff, usually to fund new stuff. I don't want to track business-level paperwork to mitigate taxes on my trains.
Still looking for a good alternative to buy. Looking for a good alternative to sell. But it was a good run while it lasted. Thanks, Congress.
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Post by sd40dash2 on Dec 9, 2021 20:53:02 GMT -8
I understand how you feel.
But what choice do we really have? If you want to easily buy something long out of production like an old kit, RTR model or detail part with little to no drama with seller, ebay is the best game in town. Same goes for the easy "buy it now" when a great new model comes out and all the dealers have them in stock with good photos and competitive pricing and overall low-friction buyer experience.
We all need to sell and downsize on a regular basis or as our interests change over time. The base of buyers remains on ebay and their auction format cannot be beat for countless reasons. There is just no way I could have disposed of all these hobby items I've sold on ebay since the 1990s, as quickly or profitably. I can do all this on the computer in the comfort of home and a trip to deliver package to post office. Sold, 7 days, done, money in hand. There are no train shows around here but even if there were, sitting at a table wearing a mask all day is hardly a wise use of my time. No way would I ever sell everything there anyway. On ebay I am reaching a large part of the market in minutes, any day of the year, without haggling and having to drive to some event center and pay for a table.
That said, I fully agree that govt intrusion and taxation into our lives is an ongoing irritant. Our local govt around here has reduced the speed limit on our highway by over 60% while claiming it's about safety. Cops out the next day in force fleecing motorists and lining their pockets at our expense. Safety indeed. Yes, highly annoying and inconvenient but I'm not about to sell my car and start walking or biking everywhere (I don't live in a city) as a result. Driving my car on the highway is simply the best way here. Same goes for buying and selling on ebay. The alternatives don't come anywhere close for countless reasons.
I realize personal circumstances and opinions vary.
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Post by peoriaman on Dec 10, 2021 12:16:39 GMT -8
Sadly, while I caught that the threshold for 1099s wouldn't be $600 until next year, I did not catch that it was $1200 this year until I hard-busted the limit. I feel your pain. I busted the limit too and in the end 2020 was the first year in my life I didn't get a refund. I do my own taxes, and never before had I mailed in my return with as much doubt that I had done it correctly. I must've done it OK, since I haven't been audited.... Knock on wood. I'm through selling there too. I don't have much good stuff left to sell anyway; after the 1099 ordeal I filled a couple boxes with stuff and donated it to my former club for them to sell at their swap meet. Sadly, I'm not even sure the stuff made it that far since when I eventually paid the club a visit, my stuff wasn't there with the rest of the stuff for the swap meet, so maybe some other member swiped it. Such is my luck. |
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Post by Deleted on Dec 10, 2021 14:30:06 GMT -8
slowfreight--
I'm right there with you, and also tired of people telling me to just suck it up and continue selling on Ebay (I too was selling my gently used trains to buy other trains). I've also found better places to buy new trains than Ebay, as several dealers out there will easily beat current Ebay prices.
Solution: My local train store is gladly selling most items I want to sell for me, for a fee of course. The other items--the new store owner and I will have a table at a train show in the spring, where I will be selling some premium rolling stock and engines for good prices. Now I have more truly excellent candidates for the train shows. Unfortunately thousands of dollars in some modern train items that I just don't need (ScaleTrains, Intermountain, Tangent, and ExactRail).
I was happy enough with Paypal, but balked at giving Ebay direct access to my state employees credit union account (in our area banks shaft you if you don't meet ridiculous minimum balance requirements). I stopped selling on Ebay in June, and thankfully my sales for 2021 are only $1104 (and no profit whatsoever), so I'm apparently below the $1200 limit which I did NOT know about either.
Thanks for your topic post, and best wishes selling/trading somewhere else!
John |
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Post by alcoc430 on Dec 10, 2021 21:23:58 GMT -8
Well, it's kind of sad, but tonight I packed what will probably be my last ebay sale ever. Been selling on the 'bay for over 15 years, through the boom years when it was the wild west, and even did one last round this fall. Sadly, while I caught that the threshold for 1099s wouldn't be $600 until next year, I did not catch that it was $1200 this year until I hard-busted the limit. I didn't even mind the sales tax, but 1099s on my hobby are too much. Nothing to do but delete my account and move on. What sucks is that most of us won't want to sell on any platform that taxes us on our "garage sale profits." So I don't expect we'll be able to find the old, odd, out-of-production, or you-name-it thing that we as model railroaders came to depend on ebay. As a seller I wanted to unload extra stuff, usually to fund new stuff. I don't want to track business-level paperwork to mitigate taxes on my trains. Still looking for a good alternative to buy. Looking for a good alternative to sell. But it was a good run while it lasted. Thanks, Congress. Thanks for letting us know about the $1200 limit for this year |
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Post by lvrr325 on Dec 12, 2021 2:07:32 GMT -8
eBay has screwed things up so badly changing search, I have had a number of what should have been easy sales on the first shot need multiple relistings to sell. I have to run them at around the high end price to get that price too, the bids have not been there. Probably the worst one was a Pocher/AHM Lincoln Funeral Car, the one with 8 axles. Somebody got $103 for one, mine was better and it went off at $31. I didn't expect it to break $100 but it should have brought $50.
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Post by patch job on Dec 12, 2021 9:34:43 GMT -8
Well, it's kind of sad, but tonight I packed what will probably be my last ebay sale ever. Been selling on the 'bay for over 15 years, through the boom years when it was the wild west, and even did one last round this fall. Sadly, while I caught that the threshold for 1099s wouldn't be $600 until next year, I did not catch that it was $1200 this year until I hard-busted the limit. I didn't even mind the sales tax, but 1099s on my hobby are too much. Nothing to do but delete my account and move on. What sucks is that most of us won't want to sell on any platform that taxes us on our "garage sale profits." So I don't expect we'll be able to find the old, odd, out-of-production, or you-name-it thing that we as model railroaders came to depend on ebay. As a seller I wanted to unload extra stuff, usually to fund new stuff. I don't want to track business-level paperwork to mitigate taxes on my trains. Still looking for a good alternative to buy. Looking for a good alternative to sell. But it was a good run while it lasted. Thanks, Congress. SLOWFREIGHT! I agree with you about the ridiculous and intrusive nature of what's potentially coming in the future but I'm having trouble finding the information on eBay. I put "reporting income" in the search box after clicking on "Policies". I can only find the old threshold of $20,000 and 200 payment transactions. This is what I found: "Form 1099-K is an IRS information return that includes the gross amount of all payment transactions you received within a calendar year. The purpose of the form is to help improve voluntary tax compliance. We'll provide you with Form 1099-K by January 31st each year if you have received payments above the minimum IRS reporting thresholds in the previous calendar year: You received more than $20,000 in gross payments, and You had more than 200 payment transactions Some states have minimum reporting thresholds that are lower than the thresholds outlined above. We recommend that you consult a tax advisor to understand which threshold applies in your state." Am I missing something? Are there different versions of the 1099? I have been selling on eBay since the year 2000...as a hobbyist of course. If I sell a surplus car for $40, I am NOT making $40. I can promise you that. Jeff |
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Post by lvrr325 on Dec 12, 2021 10:24:25 GMT -8
FWIW, you were always supposed to report that income. Almost nobody did, because taxation is theft and it would rapidly become unprofitable to sell anything without some creative bookkeeping.
I found that if you operate as a business doing it, you could deduct the value of inventory against owed taxes, I will have to look into whether those rules have changed. It's not hard to have thousands of things each worth at least a dollar. So the only added hassle is the bookkeeping.
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Post by patch job on Dec 12, 2021 10:53:55 GMT -8
FWIW, you were always supposed to report that income. Almost nobody did, because taxation is theft and it would rapidly become unprofitable to sell anything without some creative bookkeeping. I found that if you operate as a business doing it, you could deduct the value of inventory against owed taxes, I will have to look into whether those rules have changed. It's not hard to have thousands of things each worth at least a dollar. So the only added hassle is the bookkeeping. I hear you but there is basically no income for people like me. It's like when you're selling stuff at a yard sale. You don't have receipts for everything either. I definitely don't have receipts for 85% of the trains I buy which are mostly used stuff from train shows. When it comes to new items, I may change focus or come to the conclusion that I bought too many and want something else. Those new items are often break even or losses when you add in eBay fees. We could extend tax laws and regulations and paperwork to people selling used children's clothes in front of their house or kids selling lemonade in the neighborhood but do we really want a society so heavily monitored? Well, some would. Not me though. They will force people like me underground. I'll agree with Slowfreight...it was a nice run. With the money being burned in D.C. on a daily basis, I just can't get on board with the harassment of the little guys trying to make a few dollars to fuel their personal hobbies. I will do more research before pulling the plug. Jeff |
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Post by alcoc430 on Dec 12, 2021 13:37:48 GMT -8
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Post by alcoc430 on Dec 12, 2021 13:39:23 GMT -8
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Post by slowfreight on Dec 13, 2021 16:58:13 GMT -8
Well, to be clear, I fell under a specific state limit of $1200 that I was not tracking. But few humans wake up and ask "I know I never think about XXX changing on any given day, but did someone happen to create a new rule covering XXX while I slept?"
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Post by valenciajim on Dec 18, 2021 9:29:33 GMT -8
FWIW, you were always supposed to report that income. Almost nobody did, because taxation is theft and it would rapidly become unprofitable to sell anything without some creative bookkeeping. I found that if you operate as a business doing it, you could deduct the value of inventory against owed taxes, I will have to look into whether those rules have changed. It's not hard to have thousands of things each worth at least a dollar. So the only added hassle is the bookkeeping. "Taxes are what we pay for a civilized society."--Oliver Wendell Holmes, former Justice of the United States Supreme Court. Nobody likes to pay taxes, but when your house is on fire, you are grateful for the taxpayer funded fire department who comes to extinguish the fire. First of all, creative bookkeeping is not needed. I believe that there is a misperception that the amount reported on Form 1099 is the amount you pay taxes on. That is incorrect. Income taxes are based on the profit, and in some cases, the loss reported. How and where you report this amount on your tax return depends on whether you are in a business where you intend to make a profit or whether you are a hobbyist thinning your collection. The following is a summary of my understanding of the rules. You should not rely on this information and should consult with a tax advisor. If you are engaged in a trade or business for profit, you can generally deduct any bona fide expenses attributable to that business such as auto expense, bookkeeping fees, advertising, etc. Items acquired for resaleIf you are engaged in a business, you report the sales on Form 1040, Schedule C, Profit or Loss from Business (Sole Propreitorship). You report your sales on Line 1 of that form. You report the cost of the items sold (what you paid for them) on Line 4. Technically you are supposed to account for your inventory, but the important part is you determine what you paid for the items you sold and claim it as an offset against the amount reported on Line 1. Technically, the amount reported on Line 4 should include your direct selling costs (e.g., amounts paid to e-Bay, shipping charges, etc.), but alternatively you can probably deduct these items on Line 48. If you purchase items for resale, you should maintain records supporting what you paid those items. If you do not have records, perhaps you can estimate the costs of the items sold, but the IRS may disallow such estimated costs on examination. As with any business, maintaining good records is essential. One last pitfall is the hobby loss rules. Generally, if you are deemed not to be conducting an activity with the intent of making a profit, you must report the income, net of cost of goods sold on Schedule 1, Form 1040, Line 8. If you report an item on Schedule 1, Line 8, I suggest attaching a schedule to your return reporting the gross sales reported on form 1099 reduced by the amount you paid for those items and any selling costs such as eBay fees and shipping costs. Generally, the IRS will consider you to be a for profit business (rather than a hobby) if you report a profit for at least three out five years. For a further explanation see www.irs.gov/newsroom/heres-what-taxpayers-need-to-know-about-paying-taxes-on-their-hobby-activitiesThe hobbyist thinning his/her collectionTechnically, since the items were not acquired for resale they are not inventory, but rather are capital assets. The sales of capital assets that are held for personal, rather than investment, purposes are taxable events. If you sell the asset at a gain, the gain is taxable as a capital gain (which is generally taxable at favorable rates). However, if you sell the asset at a loss, the loss is not deductible. Technically, if you sell at a gain, the transaction is reportable on Schedule D. Similarly, if sold at a loss, the sale is also reportable on Schedule D, but the cost of sales cannot exceed the sales proceeds. However, in the instructions for the 2021 tax returns, the IRS says these sales should be reported on Schedule 1, Line 8, as discussed above. I am not sure that this is entirely correct because those sales are not reported as capital gains and you may pay taxes at a higher rate if you report the sales on Schedule 1 instead of Schedule D. Now if you are thinning your collection and you are like me and do not have detailed records supporting what you paid for the items you sold, you might want attempt to create a credible estimate. That might be looking the item up in the Walthers catalog and using the MSRP or some percentage of MSRP as you cost. Based on my experience in 47 years of practice as a CPA, ff you return is examined, some IRS agents will accept that, while others will not. Again, the costs paid to eBay and shipping costs are added to the cost of what you paid for the item for purposes of computing the gain or loss on sale. One highly technical point is that after the 2017 Tax Cuts & Jobs Act, expenses incurred in connection with selling off your collection are no longer deductible. However, cost of goods sold is NOT a deduction, Under the Internal Revenue Code, it is an exclusion from income and is not subject to the new rules under the Tax Cuts & Jobs Act. IRS Agents do not always understand this. I hope this is helpful. If you have large amounts of money involved, you might want to consider consulting a tax professional. I am sure that more will be written on this topic as people have to deal with the new reporting requirements. |
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Post by nebrzephyr on Jan 6, 2022 9:03:35 GMT -8
Here's another ebay screw-up! I'm in the process of selling my last items on ebay. I go to check my "payments" this morning and I'm greeted with the message "payments on hold". After about 1 hour on the phone with ebay, I finally got to someone who admitted they have a "system problem" that's affecting multiple accounts. Worst yet they can't tel me "why" my account was flagged. Apparenly the "system problem" has something to do with ebay changing the 1099-K requirements.
What I joke these people are.
Bob
01/18/2022 UPDATE: ebay finally must have solved their "system problem" as I rec'd email today saying my funds have been released.
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Post by SOMECALLMETIM on Jan 18, 2022 6:27:55 GMT -8
I noticed my saved EBay searches are not returning results correctly making them slightly useless. They’ll return any result and not the specific category I selected - even though it says “0 results for the category I selected”.
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Post by nsc39d8 on Jan 18, 2022 7:24:57 GMT -8
I noticed my saved EBay searches are not returning results correctly making them slightly useless. They’ll return any result and not the specific category I selected - even though it says “0 results for the category I selected”. This has been a problem for me for over three years. My account has hacked and I caught it as it happened. I called Support and was talking with them and got control of my account back quickly. In the next few days I noticed items I had as saved searches were appearing in categories as I looked thru them but no emails to alert me. Contacted support again and they have yet to find why this is occurring. At this point I find myself buying less on Ebay since them started collecting tax and S&H increased so much. I have found online shops that provide great service and still get the items I want. Bad thing is a lot of them sell on Ebay as well. |
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Post by lvrr325 on Jan 22, 2022 9:55:09 GMT -8
eBay changed categories in October, eliminating scales from the train categories, for instance, instead you pick from the boxes on the left to narrow your search and I have to do more work entering data when I list the items.
This may have affected saved searches if they were very specific.
"Creative bookkeeping" means in situations where there's no hard record one might report numbers which further lessen their liability.
I am still puttering along there, maybe 2 to 5 sales a week. If you email me there and want to buy in person at a show or whatnot I'll do that. It's getting to where between sales tax and postage you can be looking at $10-$15 on top of the item price.
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Post by westerntrains on Mar 2, 2022 16:20:06 GMT -8
The sky is falling, the sky is falling!!!! Ebay didn't do this, the goverment changed the tax laws and Ebay just collects them.
Some of you sound like old women unable to deal with change.
Most of you will continue to shop on ebay privately, but here and else where, you all will point your boney fingers of indignation and shake your fists at the sky.
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cvacr
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Post by cvacr on Mar 7, 2022 13:33:43 GMT -8
The sky is falling, the sky is falling!!!! Ebay didn't do this, the goverment changed the tax laws and Ebay just collects them. My understanding of this is they don't even do that. (Not collecting taxes.) All they do is send you the form with the total sale numbers. It's up to you to report it to the government with your taxes. |
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Post by lvrr325 on Apr 2, 2022 15:49:57 GMT -8
eBay collects sales tax for every state which has one. In fact I think they hit be for sales tax on an item from China, too.
Income tax is up to you to calculate and pay.
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Post by loco8107 on May 8, 2022 11:01:39 GMT -8
While we’re on the eBay topic- I know eBay raised their fees and such but is it me or does it seem used locos are now going for way more than the fee increases these days? I get the recovery of the increase as I sold few few things on there before and totally understand that but it sure looks like folks are getting a little more greedy than eBay is in the process. It’s getting frustrating as someone that’s into buying good running used locos for the fleet.
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Post by el3625 on May 8, 2022 12:53:24 GMT -8
I have drastically cut down on Ebay selling because of too high of fees for me anymore. You cannot buy anything very reasonable anymore either. A lot of sellers have no idea of what they are selling, and their heads must be up you know what for prices they are asking. I just sit here and laugh at what prices are being asked for junk and used stuff. I am not going to sell much anymore on Ebay, it is a rip-off now as far as I am concerned. It used to be OK, NOT anymore! I can just sit on my goods and get tables at train shows to sell now. I always offered fairly decent prices on my merchandise and did ok, but with higher fees and cost of shipping, I am NOT going to lose money on most every transaction. I can sell at train shows and pay no selling fees, no taxes and no shipping fees. The cost of tables is pretty reasonable yet and I do not mind paying for them instead of giving away my money to Ebay. What is going on with all of the greed these days? How much money do you really need?
Bruce
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Post by loco8107 on May 8, 2022 14:36:49 GMT -8
I have drastically cut down on Ebay selling because of too high of fees for me anymore. You cannot buy anything very reasonable anymore either. A lot of sellers have no idea of what they are selling, and their heads must be up you know what for prices they are asking. I just sit here and laugh at what prices are being asked for junk and used stuff. I am not going to sell much anymore on Ebay, it is a rip-off now as far as I am concerned. It used to be OK, NOT anymore! I can just sit on my goods and get tables at train shows to sell now. I always offered fairly decent prices on my merchandise and did ok, but with higher fees and cost of shipping, I am NOT going to lose money on most every transaction. I can sell at train shows and pay no selling fees, no taxes and no shipping fees. The cost of tables is pretty reasonable yet and I do not mind paying for them instead of giving away my money to Ebay. What is going on with all of the greed these days? How much money do you really need? Bruce So true and I’m glad others see this too. My biggest issue is the asking prices for average stuff that’s not junk. |
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Post by Deleted on May 9, 2022 9:41:44 GMT -8
Yes, prices are one main issue. In most cases, I can buy the item brand new in original box from Spring Creek or Lombard Hobby or Hiawatha Hobbies or even Western Depot for LESS money than the prices on ebay. A reasonable percentage of ebay model train sellers now no longer accept returns and expect you to return the item to the manufacturer within the warranty period if there is a problem. That absolutely sucks for the buyer because if they send you a defective engine, the importer/manufacturer is most likely going to be completely sold out of the item and in some cases unable to repair it or to provide parts. Some manufacturers no longer stock parts. Athearn's warranty specifically states or did state that they will maintain parts for about 1 year after the models arrive, and Athearn is wonderful about that. Others not so much.
Why on earth would I buy an engine off ebay when I can get it brand new in box from a reputable train shop that will absolutely give me my money back if there is a problem??
The last engines I bought off evilbay were actually Bowser units that had undisclosed issues. One had several items damaged including needing a new brass horn; another had a mechanism issue. If they don't show photos of all sides of an items, I assume there is something they don't want me to see, and then I buy elsewhere. Oh, I bought an Athearn BNSF SD40-2 off ebay that just isn't that great of a model--handrails not so good--is on consignment sale brand new in box.
So no, we are not whiny old ladies as someone above posted. My local train store is selling models on consignment. Sure, I get less for them, but I have no work other than dropping them off, and they are selling the items pretty quickly in most cases. Then I don't have to deal with ebay, the fees, the complaints about shipping costs (as if I was the USPS), etc.
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Post by riogrande on May 9, 2022 10:33:47 GMT -8
The infinite relist with no cost seems to be a factor that causes people to list at stupid prices. I see Walthers Superliners that used to sell for $25 or $30 listed now for $100 and up to $150. They don't sell but I guess they hope someone will come along and mistakenly pay that much. I'm talking the tan box Superliners, not the newer plated or Proto. As the song goes, "walk on by"
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Post by loco8107 on May 9, 2022 16:52:25 GMT -8
The infinite relist with no cost seems to be a factor that causes people to list at stupid prices. I see Walthers Superliners that used to sell for $25 or $30 listed now for $100 and up to $150. They don't sell but I guess they hope someone will come along and mistakenly pay that much. I'm talking the tan box Superliners, not the newer plated or Proto. As the song goes, "walk on by" Yeah some of the Walthers GP15’s going for more than most of the P1K ones haha….. and an Athearn BB for way more than the RTR diesels…gotta love people…. |
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Post by Deleted on May 10, 2022 9:17:18 GMT -8
I just saw a 20+ year old Atlas U36C with ATSF yellow paint peeling off the delrin handrails on Ebay for $189 "Brand New". Yes, that seller is smoking crack. The model is very clearly far from new with a very crappy paint job on the handrails.
Sometimes it is hard to tell if the seller is just ignorant of what they have versus today's locos, just plain stupid, greedy or D all of the above.
John
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Post by riogrande on May 10, 2022 12:01:54 GMT -8
I definitely run across a lot of greedy sellers who have an unrealistic idea of what an item will sell for. or not.
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Post by el3625 on May 10, 2022 13:05:45 GMT -8
All of the above and more! Look "Rare" yea right for 100 bucks. Idiots!!!!!!!!!!!
Bruce
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Post by riogrande on May 10, 2022 13:44:50 GMT -8
Yeah, seen those rare marked items. Whatever.
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