Among Friends

[Tinkrbl44]

You're probably aware that the regs for taxation and reporting has changed.  I've seen no way that sellers can pay income tax on sold items during the year; it's all 1099 reporting.

I'm not a huge eBay seller, but this year I've done a little better.  I usually post an item and charge shipping.  

Looking at my recent monthly statements, I'm thinking it would be better to factor in postage and offer items with "free" shipping.  Doing it that way, I'll have higher operating expenses (from shipping costs) that will offset the total taxable income.   

With the new drop in taxable reporting income, are you doing anything differently?  

What are your thoughts on this?  

TIA!   

[rockygems123]

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@Tinkrbl44 wrote:

You're probably aware that the regs for taxation and reporting has changed.  I've seen no way that sellers can pay income tax on sold items during the year; it's all 1099 reporting.

I'm not a huge eBay seller, but this year I've done a little better.  I usually post an item and charge shipping.  

Looking at my recent monthly statements, I'm thinking it would be better to factor in postage and offer items with "free" shipping.  Doing it that way, I'll have higher operating expenses (from shipping costs) that will offset the total taxable income.   

With the new drop in taxable reporting income, are you doing anything differently?  

What are your thoughts on this?  

TIA!   

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@Tinkrbl44 

I've been selling on eBay for 29 years about 9 months after eBay started.

For the most part always a good idea to add to expenses to offset income.  Some of my fellow eBay dealers / friends offer free shipping.  It's not for me as I don't like to add to the purchase price, it's a personal choice.

As for paying taxes as you say 1099's are given end of year with taxes paid as usual in April not quarterly.  Maybe you're thinking of business owners paying their taxes quarterly?

Nothing changes for me with a threshold lowered for reporting taxable income.  BTW what is the threshold now?

[Tinkrbl44]

@rockygems123 

If you have an established business and pay quarterly taxes, that makes sense. 

I'm an individual seller on Ebay and don't pay quarterly taxes, so I was wondering what others, also individuals, not businesses, are doing.

Paying no taxes all year means you better have plenty of business expenses/write-offs to offset at least some of the income.