New IRS reporting for 2021?
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According to this link   https://www.jct.gov/publications/2021/technical-explanation-of-section-9674-of-hr-1319/

They want to drop the $20,000 reporting threshold for IRS 1099 reporting to $600.00 a year. That means every ebay seller with total yearly aggregate sales over $600.00 is getting a 1099. That is nuts. This will kill ebay and force people to buy and sell with checks and money orders on non affiliated sites, Facebook, the CGC boards, etc.. This is the government thinking they can raise taxes by going after the guy selling stuff in their basement. Ebay was built on that seller. If this bill passes ebay sales will plummet. I know I will not be selling on there ever again. This will ruin some online portals, just ruin them.

Edited by nochips
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Just now, Wolverinex said:

agreed.  I barely use ebay anymore regardless..

I use them all the time but $600.00 is a deal killer for me. I will buy and sell on these boards only, checks and money orders, old school is coming back! No more Venmo, paypal, etc.

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29 minutes ago, nochips said:

According to this link       file:///C:/Users/Stuart/AppData/Local/Temp/Technical-Explanation-of-Section-9674-of-HR-1319.pdf

They want to drop the $20,000 reporting threshold for IRS 1099 reporting to $600.00 a year. That means every ebay seller with total yearly aggregate sales over $600.00 is getting a 1099. That is nuts. This will kill ebay and force people to buy and sell with checks and money orders on non affiliated sites, Facebook, the CGC boards, etc.. This is the government thinking they can raise taxes by going after the guy selling stuff in their basement. Ebay was built on that seller. If this bill passes ebay sales will plummet. I know I will not be selling on there ever again. This will ruin some online portals, just ruin them.

To me ebay was already dead. I only bought one item there the past year and that was just by chance. It is my last resort. The auction format no longer being the main way product is sold was proof enough that the ebay we knew was no longer around.

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4 minutes ago, the blob said:

as this is something that could hurt CGC's bottom line (my guess is that heritage already issues 1099's for consignment sales?) it is worth discussing here. let's just try to avoid letting this get political.

How is CGC impacted? ???

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Just now, THE_BEYONDER said:

How is CGC impacted? ???

you don't think vibrant markets like ebay, etc. make cgc books more liquid, etc. and thus increase the demand for encapsulation? if folks just say "F-this" and stop selling on ebay, they're going to have less money (and less reason) to plow into encapsulations. granted, perhaps the high volume slabbers are already going over $20K and have to deal with this anyway.

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13 minutes ago, the blob said:

 let's just try to avoid letting this get political.

Seems I locked the last thread for getting too political, I agree.  I am going to allow this new thread, even though I said differently in the other thread .  If there are any political posts, Points will be issued.  

Edited by comicdonna
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It's not just Ebay. Any payment services like Paypal are going to get dinged. Everyone is suddenly going to be keeping meticulous records of their comic purchases to write off. As I believe you have to pay almost 15% in just Social Security/Medicare, this is going to cripple collectables. That's not even including any Federal/State taxes.

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I can understand the IRS wanting to lower things fro the $20K/200 sales thresh hold, but it should be higher than $600, which has been the income reporting thresh hold for decades if memory serves. Make it something like $5K/ 50 sales, at which point such income is likely a side business and not just an electronic yard sale. 

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6 minutes ago, Tnexus said:

It's not just Ebay. Any payment services like Paypal are going to get dinged. Everyone is suddenly going to be keeping meticulous records of their comic purchases to write off. As I believe you have to pay almost 15% in just Social Security/Medicare, this is going to cripple collectables. That's not even including any Federal/State taxes.

Unless it really is a side business, you can probably claim such income as capital gains if you are just selling a few books a year out of your collection. You still have to pay tax on profits, but can possibly avoid FICA. 

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I wonder if this will be the long foretold "bubble killer". Collectibles have seen unprecedented growth during the pandemic, fueled in a large part by ebay, FB and Instagram sellers, who no doubt use online processors like Paypal and Venmo. A lot of hobbyists became part time "dealers". If they have to start paying 1/2 of their income in taxes, that's going to put a damper on their business, and I'd imagine many will stop selling altogether. Is the party over at the end of the year?

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10 minutes ago, F For Fake said:

I wonder if this will be the long foretold "bubble killer". Collectibles have seen unprecedented growth during the pandemic, fueled in a large part by ebay, FB and Instagram sellers, who no doubt use online processors like Paypal and Venmo. A lot of hobbyists became part time "dealers". If they have to start paying 1/2 of their income in taxes, that's going to put a damper on their business, and I'd imagine many will stop selling altogether. Is the party over at the end of the year?

A big question is selling comics that you've held over a year.. are you charged at a long term capital gains tax rate and how does ebay know?  

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