[Boatanchors] eBay/PayPal

[Doug Hensley]

Nothings really changed regarding eBay & IRS forms.  If anything, it's improved slightly.
Before eBay went to "Managed Payments" (using your own bank acct instead of PAYPAL)
PAYPAL would not notify you if it was reporting your annual income through a 1099K.
It reports anyone if the total transactional sum was $20K or more AND there were 200
or more transactions.  All transactions whatsover are counted, sale, purchase, eBay or not
eBay, etc. going out or coming in.  Most of us thought that was unfair.

eBay has actually improved things:

  1.   It tracks only your eBAY transactions
  2.   This frees PAYPAL to be used for vendor purchases, person to person deals, money xfers, etc.
  3.  eBay now collects any owed state tax and you can ignore this on your annual state tax filing;

The IRS also waives tax liability for any sale in which an item of your estate is being disposed of
(any previously owned item of I think 24 months or more.). If you file the short form, you just do a
1040X with a schedule C identifying the transactions.

 A good tax guy can do this for you and keep your flag flying 🙂 ....

Hope this helps,

Doug W5JV






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