eBay question

[CountAllVotes]

I was going to try to sell a few things on eBay and I see they now want my SS#. Why is this?

Is it because you get taxed on your sales now or what?

I'd call up PayPal (ugh), but I really don't feel like speaking w/them right now.

If any one can answer my question, please let me know.

Thanks very much.

CountAllVotes

[brer cat]

1. That is IRS rule not ebay.

Ebay has to issue a 1099K if you have sales that are paid via credit card companies, and PayPal is considered a credit card processor. It was congressional legislation, so if you want to protest, contact your representative.

[CountAllVotes]

2. when did this start?

I have not sold anything on ebay for years, like over 10 of them.

Thanks for your help.

[brer cat]

3. Some time in 2011 I think.

I worked last year during tax season and we had clients who were stunned when they got the 1099s from ebay, and that was the first year I had seen them. They only send 1099s if sales are greater than $600 so casual sellers are not included.

[CountAllVotes]

4. boy that sucks

sort of defeats the purpose of ebay for the casual seller!

Thanks for the info!

[grasswire]

5. $600 for a year? or per sale? nt

[brer cat]

6. For a calendar year.

[grasswire]

8. so that now taxes tag-sale type sellers who wouldn't be reported...

...if they were selling off their household stuff at a local flea market or garage sale.

[CountAllVotes]

7. what PayPal told me

They said total sales over $2,000.00 would generate the form 1099.

Damn liars!

Thanks for your honesty! I really appreciate the fact that YOU are here!

[CountAllVotes]

9. more info.

I did some checking around and found out it is $20,000.00 and/or 200 transactions that must occur before a form 1099 is generated.

>>Details and Caveats
As a practical matter, if you're an eBay seller, this will effect you unless your gross sales are under $20,000 for the year or you receive fewer than 200 transactions. Reporting for small sellers at this level is not required.

Otherwise, if you exceed this volume, you'll be required to provide tax identification information (SSN or EIN number, for example) to payment processors like PayPal and will be expected by the IRS to account in your return for the amounts reported on your 1099-K form(s).

more re: this here: http://ebay.about.com/od/sellingeffectivel1/a/_sbe_tax1099k.htm

It seems that this new rule/law took effect in 2011 and it would have no effect on most people that sell things on eBay. However, if you are a "POWER SELLER" I'm thinking they gotcha!

[grasswire]

10. yep I also found this info in many sources...

.....when I googled the other day. That's good news for buyers too, because so many wonderful items come from casual sellers who would be unable to sell were the rule more strict.

[CountAllVotes]

11. I'm wondering about the $600.00 figure

Perhaps the person that brought the 1099-K to the above poster had $600.00 over the $20K amount, thus making total sales $20,600.00?

Got to admit I'm a tad bit confused.