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 Replies: 26 / Views: 3,870 |
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Moderator
 United States
23522 Posts |
Quote:I believe the day is coming where ebay has to report sellers to the IRS and would be willing to bet sales tax in on the way as well. I've been getting tax paperwork from ebay and Paypal for years. And Congress will be getting around to the sales tax issue whenever they start talking to each other again. Which is to say, we've got breathing room on that one.  |
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Pillar of the Community
 United States
1130 Posts |
I understand the tax for the big sellers making over $1000 a month, but the people that are making a lowly $50 on ebay a month or so shouldn't have to pay it. If everything keeps rising in price, it will be just as cheap to go to a store and get the items. |
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Pillar of the Community
United States
2335 Posts |
Quote:Thanks trdhrdr007. That is what I thought. I just never see people include the 30% tax cost into their profit margin. Between taxes and ebay you are looking at almost 50%. It takes some pretty good margins to make a living with that. I agree many fly under the radar. I believe the day is coming where ebay has to report sellers to the IRS and would be willing to bet sales tax in on the way as well. Keep in mind you only pay tax on the profit. If you buy an item for $100 & sell for $150 with 13% eBay/paypal fees your profit is $30. You would only pay tax on the $30. In that example you are paying $19.50 fees + $9 tax(at 30% marginal rate) for a total of $28.50, or 19% of the sale. Also, you are allowed to deduct legitimate business expenses. I'm not a CPA so take this with a grain of salt. Rules may have changed, but you used to be able to make up to $600/year outside of your regular job before you had to declare the income. Edited by trdhrdr007
12/18/2013 09:07 am
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Pillar of the Community
United States
919 Posts |
Thanks again. I was looking more at the making a living side of it.
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Pillar of the Community
United States
3486 Posts |
To make a living on coins requires a total commitment. That means traveling all around the country attending as many shows as possible. It means establishing a clientele who SEEK YOU OUT when you are in town. It means 'knowing your stuff.' How this might be done on ebay I fail to see. |
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Bedrock of the Community
13014 Posts |
Quote:
Thanks again. I was looking more at the making a living side of it. Id say if your inventory isn't in the 6 figures or higher range you likely arent making a living off it. Theres a reason why a lot of smaller shops do jewelery as well. That can be done selling on ebay alone given enough time building up a reputation but youll still need to have a lot of money tied up in inventory and its certainly not easy. No one enjoys paying ebay fees, but compared to paying for a physical store the fees are rather low. I would venture that anyone doing it mainly on ebay started small and over time built up their inventory moving to more expensive items that can be more profitable as they went along. Either that or they were a coin shop that decided it was better to lose the expense of a store. |
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Valued Member
Canada
158 Posts |
I don't make a living off it, but I do "flip" pennies. Before they were pulled from circulation here in Canada, I went to the bank and ordered $5000.00 face value. Me and my daughter sit most evenings and sort by year and variety. We pull out any that are AU, pull out the foreign coins, and create rolls by the year and variety which go on ebay. I don't make enough to pay the bills with it, but the profit is used to add to the collection. |
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Pillar of the Community
United States
1130 Posts |
Did the bank have any problem with you getting $5000 in pennies? That is hilarious, however, you did a great job of setting yourself up.
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Valued Member
Canada
158 Posts |
Edited by Fireman638
01/11/2014 6:39 pm
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Pillar of the Community
United States
2077 Posts |
Ebay/paypal will only issue a 1099 when you reach $20,000 AND 200 transactions. As trdhrdr007 mentioned, you'd only pay tax on net proceeds. As far as making money buying then selling, I bet this person could. Cherrypick of the century: http://cgi.ebay.com/380768583879 |
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Pillar of the Community
United States
1130 Posts |
Wow, that is ridiculous. I wish I could find good buy it nows like that, but they only come rarely. Fireman  and that's hilarious about the supervisors and teller. |
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Replies: 26 / Views: 3,870 |
First Page
Posted 12/17/2013 12:25 pm
