New Tax Laws eBay PayPal & more

[neil poulsen]

they're reporting taxable income . . .

That's not correct.

Taxable income in this case is based on the price of goods sold subtract the cost of the same goods when purchased, aka the basis of the goods sold. The irony is, most of what I sell is at a loss. I mean, I sell film equipment! Like when I sold all my RB67 gear a couple of years ago . . . boy, did I take a loss on that one.

I have to admit, I did make substantial profits on two sales: A Zone VI Type II 5x7 Enlarger, and on an Arca Swiss 8x10 Type "A" Camera with Bag Bellows. Both were sold on the Forum.

And, I live in one of only two states that doesn't have a sales tax.

I better be careful, though. I may get nipped in the bud. (Do I have a bud?)

[j.e.simmons]

Mike, I hope you’re right. The paperwork would be impossible for the average person.

[Tin Can]

Yes

Keep in mind that the buyer of a product has to pay sales tax called use tax to the state they bought it in if the seller isn't collecting the sales tax from the buyer. Doesn't eBay or is it PayPal now charge and collect those taxes and send them to the state for you?

[MikeH]

Mike, I hope you’re right. The paperwork would be impossible for the average person.

:-)

Actually, there's been considerable opposition from both big & small businesses. As Neil P. points out above, it's not based on *profits,* it's based on revenue. Every purchase you made from B&H that's over $600 would need to be reported.