Tax Rule Clarification? Help?

General
1

Hi guys. I just wanted a quick clarification regarding taxes.

So the rule for Paypal/eBay is if you stay under 200 sold transactions and less than $20,000 in sales you will not have a tax form generated? I just want a clarification regarding when you get taxed for sales.

Things you “buy” don’t count toward the 200 transactions, right?

Also, is their an easy way to count how many transactions I have from sales on Paypal/eBay since January 1st? I’m just nervous because I’m on pace it seems for almost exactly 200 transactions it seems. I’m up to 90 sold items right now since Jan. 1st. If I count things I buy and transfers, it’s more though.

Any help is appreciated. If there is a specific thread for this with these answers then let me know. I did not think there was one with exactly this information.

3

200 AND 20,000

Buys don’t get added to those amounts though they can be written off on those amounts.

Yes, you can bring up your totals on the Paypal site. You can figure it out.

4

Appreciate it Gary. Thanks for the input!

5

ITT: Tax evasion advice.

Paypal is guaranteed to report your income with 200 AND $20,000. They still can report it sometimes when you are at less than that threshold. That is just the automatic report threshold. Regardless of if you get a form or not you still legally owe taxes on any gains just FYI.

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6

Of course! I’m a responsible citizen. It would be great if I hit that threshold so I didn’t have to do the work of reporting myself after all! :wink:

7

If you bought a card for cash and sold it. Do you have to pay taxes on the whole sale value or just the profit? How does IRS decide what is profit without repceit ?

8

You are only required to figure in the profit,