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07-15-2010, 07:06 AM #1
Will card values go up in 2011
Last night I was reading, in 2011 PayPal will start sending out 1099’s to e-bay sellers with over 200 transactions through PayPal or over $20k in sales. Even though everyone is supposed to report income to the IRS most e-bay sellers probably don’t. Do you think in 2011 card values might start going up if ebay sellers will have to start claiming profit as income? IMO this might help card values since less people may be selling on e-bay starting next year.
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07-15-2010, 08:30 AM #2
I think sellers' with that much sales volume are probably reporting their income, and if not, it's hard for me to think that they would stop selling over it (unless once their 1099s are reported to the IRS, they get audited and then nailed for back taxes). But then again, I report my limited eBay income on my taxes (as hobby earnings that are cancelled out by what I spend on the hobby), so maybe my worldview of most people paying taxes on their earnings is naive.
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07-15-2010, 09:20 AM #3
having paypal send out 1099's will have zero effect on card prices nor will it keep people from selling on ebay. Like darkqug said, people that sell 200 items or $20,000 on ebay are paying taxes already.
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07-15-2010, 09:51 AM #4
200 sales is not hard to do. If you sell 15-20 items per month. From the article I read, the 1099's will be reported to the IRS too.
Here's the link to the blog I read:
https://www.thepaypalblog.com/2008/0...ts-become-law/
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07-15-2010, 11:06 AM #5
yeah, 200 items isn't hard to get to and technically anyone selling that much on ebay should be paying taxes on their profits.
yes, 1099's go to the IRS as well as the seller. If you get a 1099 and don't include it on your taxes expect some backlash for sure.
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07-15-2010, 04:50 PM #6
Profits? If I buy a box from my LCS, I pay tax on the cards. I sell a bunch of lowend cards on ebay and then should be taxed again? Shouldnt be based on the number of transactions. 180 transactions for $18k doesnt qualify?
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07-15-2010, 04:56 PM #7
I guess it such a scenario wouldn't result in PayPal sending a 1099 to you and the IRS, but you are supposed to report any money you make regardless. However, if I understand the taxes correctly, you can report the sales as hobby income, and if you spend more on your hobby than you make, then you won't owe tax on it. That's how it seems to work when I fill it out on TurboTax, anyway.
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07-15-2010, 11:56 PM #8
it's hard to tell what will happen. People making $20,000 on ebay should have been reporting it all along and the IRS just wants their cut. It's easy enough to cancel out what ever you make on ebay. The original cost of the product + sellers fee's, shipping and all that non sense. Not saying that you aren't making a profit but if you made $20,000 it's safe to assume that it wasn't pure profit.
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07-16-2010, 12:52 AM #9
If you make a profit then yes you technically have to pay taxes on you profits. If you buy a box of cards and sell some that cost of the box is an expense that you right off during the process of doing your taxes. you have lots of things you can right off.
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07-16-2010, 07:39 AM #10
When you buy a box from your LCS you’re paying a sales tax to the state for the cards. When you sell the cards you need to pay income tax to the feds on any profits you make. According to the article you should only receive a 1099 if you have over 200 transactions or $20k in sales. If you do sell a lot of cards on e-bay keep your receipts for your purchases in case you’re ever audited.
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Originally Posted by darkqug 
