Anyone else receive this "ebay"warning?

[intheminors]

If this has been addressed from, I apologize. I have a few jerseys on ebay currently and someone sent this message to me in the form of a question on one of my listings:

To:flash195From:intheminors Item:Staten Island Yankees Game Used/Worn Home Jersey (110489381261) Subject:Re: Question about payment for item #110489381261 - Staten Island Yankees Game Used/Worn Home Jersey
Q: Hi Nice jersey. Be very very careful with paypal only. Paypay is no friend of the seller. I have well over 3000 auctions 100% feedbacks, I'm a retired NYPD Detective. The case against paypal is very long. Pull up "paypal horrors" on google. As a seller you are 100% responsible to insure the item - never the buyer as they are covered simply by using paypal. If there's a problem paypal comes after you the seller to payup. You are at the mercy of the buyer to be honest and not say you sent something different. PP will side with the buyer - your out again. The IRS now monitors paypal for unpaid taxes. The list is endless. When I sell I do what I can to receive postal money orders - even checks. We all want to be honest but truly paypal is not ever in the sellers favor. its nice to receive the money right away but the risks are too great. My old partner now works for paypal in Fla. He told me absolutly no one in his office sells using it. Thats enough for me. All the best Dave

[Rossi46]

It would make sense that people should report their earnings from ebay if they are selling hundreds of items a week as there sole source of income. But I don't see how it would be fair for someone who is simply selling a few things to just to get rid of them. I mean, if you have a garage sale at your house, you don't have to record that and pay taxes on the money earned do you? What does everyone else think?

[legaleagle92481]

It would make sense that people should report their earnings from ebay if they are selling hundreds of items a week as there sole source of income. But I don't see how it would be fair for someone who is simply selling a few things to just to get rid of them. I mean, if you have a garage sale at your house, you don't have to record that and pay taxes on the money earned do you? What does everyone else think?

If you sell an item for more than you pay for it, the amount above what you paid for the item is taxable. I.E. you buy a game used jersey for $400 and you turn around and sell it on Ebay for $600, the $200 difference between what you paid and what you made is taxable. It is like if you invest in a stock that appreciates and then you sell it or if you sell your house, the gain is taxable. When you have a garage sale most stuff is sold for less than you paid so it is not taxable because there is nothing to tax if you sell for less than you paid.

[34swtns]

If you sell an item for more than you pay for it, the amount above what you paid for the item is taxable. I.E. you buy a game used jersey for $400 and you turn around and sell it on Ebay for $600, the $200 difference between what you paid and what you made is taxable.

Makes you wonder how long before ebay and other auction houses are more closely regulated by the gub'ment.
'Cause they're losing a TON of money in taxable income every day and don't think they don't know it.

[bigtime59]

The minute everybody selling on eBay has to run their "business" like an actual "business" is the minute eBay shrivels up and blows away.
The day after, somebody will be making a fortune off the bartering site they just set up.

[legaleagle92481]

In some states i.e. New York it is not just the seller who faces possible tax issues as the buyer is responsible for paying sales tax. For purchases that the seller did not charge tax the buyer is supposed to remit the tax owed for all such purchases to the State when filing his or her tax return. Currently it is on the honor system but if that changes it will help kill Ebay.

[transam9572]

I stopped using paypal for this reason. Nice post.

[sylbry]

In some states i.e. New York it is not just the seller who faces possible tax issues as the buyer is responsible for paying sales tax. For purchases that the seller did not charge tax the buyer is supposed to remit the tax owed for all such purchases to the State when filing his or her tax return. Currently it is on the honor system but if that changes it will help kill Ebay.

Many states have use tax lines on their state income tax returns for individuals to remit sales tax on items they purchased and didn't pay sales tax. But many states also have a minimum threshold (here in MN it is $600).

Most people have no idea the number of pitfuls on ebay when it comes to taxes; from income tax, to collecting sales tax on instate sales, to remitting use tax on purchases. If Quill v North Dakota ever gets reversed then a whole new can of worms appears.

[PwKw13]

In some states i.e. New York it is not just the seller who faces possible tax issues as the buyer is responsible for paying sales tax. For purchases that the seller did not charge tax the buyer is supposed to remit the tax owed for all such purchases to the State when filing his or her tax return. Currently it is on the honor system but if that changes it will help kill Ebay.

This is something that I've never understood. Why should taxes be paid on both ends -- when buying and selling? If an item is going to be treated as an investment and taxes are paid on the gain, why should sales tax be paid up front? Sales tax isn't paid on the original purchase price of a stock.

[5kRunner]

This is something that I've never understood. Why should taxes be paid on both ends -- when buying and selling? If an item is going to be treated as an investment and taxes are paid on the gain, why should sales tax be paid up front? Sales tax isn't paid on the original purchase price of a stock.

Stock is a bad comparison. Stock is a security. Sales tax is never paid on securities.

Jerseys/Bats/Helmets etc are goods. Basically, unless you buy goods for resale you should be paying sales tax on them.