How do you even compete with the big boys?

First Edition · #23 02-11-2010

Quote:

Originally Posted by gibsonton

The IRS doesn not report untill the year 2011 so it will be on your 2011 tax form which you will file in 2012 .. i need my credit so i also file taxes on ebay and bring my invetory totals forward ..not much losses you can file.

3 out of 5 years is the red flag, I assumed.

Also, the 2011 requirement is for credit card companies, merchant processors, and merchants. Not for eBay. The eBay one is new to me!

gibsonton · #24 02-12-2010

Its not Ebay .. Its Paypal that will be giving you a 1099 ...... I went through a line by line audit for the year 2000 started the audit in 2002 had all my papers for a year - it was rough year but i hire a firm where all the employees were ex Irs agents . they chrger me $1500 for the retained and another $600 upon completion but i owed nothing .

First Edition · #25 02-15-2010

I don't think it will be a 1099, it's not exactly income.

gibsonton · #26 02-15-2010

Yes it will be a 1099 .. just google the info is pretty easy to find and was discussed on here years back when the Irs got it through ..A 1099 doesnt have to be net income it is money paid to you ..just google Irs Paypal 1099 2011 .. legislature passed few years back .

First Edition · #27 02-15-2010

I don't think paypal is technically the one paying you though... that's my only thought. Oh well, I'll let my accounting person handle that gibble gabble

Fair tax anyone?!?!

gibsonton · #28 02-16-2010

Paypal pays me they are my collector .. my checks say paypal , my wire says paypal .. my accountany was aware of ti that why we changed everything last year to give me a 3 year headstart .. as alot of people not reporting or reporting very little and than get a big 1099 or gonna stand out .. also gonna need ss numbers and verification for the paypal accounts as this is part of the 9/11 terrorist stuff ..not sure how that will effect stealth accounts if you have to give ss number and be verified .

First Edition · #29 02-17-2010

The only problem I see with it is, paypal is just a middle man, not a direct merchant processor. Customers are really paying you directly, but paypal is in the way. I'm sure that will come up in come kind of legal battle in the future.

gibsonton · #30 02-17-2010

Paypal already tried the legal battle and lost ..this has been going on for years ..If you are going to get in a legal battle with the IRS , you better know 100% you are correct ..ill just keep better records and pay my taxes -still better than a real job lol.

jbluntz · #31 02-17-2010

Or just stay under 20k and 200 sales a year for each account, which is about what I'm doing now anyway to avoid the selling limits.

First Edition · #32 02-17-2010

Quote:

Originally Posted by gibsonton

Paypal already tried the legal battle and lost ..this has been going on for years ..If you are going to get in a legal battle with the IRS , you better know 100% you are correct ..ill just keep better records and pay my taxes -still better than a real job lol.

Real job? I'm sorry sir, I take offense to that.

gibsonton · #33 02-18-2010

Take offense ,, but after working with the stress of owning my own business in the Corporate World this is like being retired -lol .

ghostrider · #34 02-23-2010

the easiest way to make good money on ebay is sell @@@@ stuff....period. less time researching products to sell and less time making auctions. list less and make more.

gibsonton · #35 02-23-2010

Quote:

Originally Posted by ghostrider

the easiest way to make good money on ebay is sell @@@@ stuff....period. less time researching products to sell and less time making auctions. list less and make more.

Thats very good for the short term but in the long term-- ebay will only get better with detecting bad items and bad accounts ...make the easy money now and invest in good products for the long term.

First Edition · #36 02-23-2010

easy money?

Oh right.....

gibsonton · #37 02-23-2010

If you are selling things you are not suppose to be selling and not in jail or being sued - usually called easy money .. trust me i dont sell vero and it is much harder to keep suppliers and find items and i spend 2-4 hours a day combing ebay listings to find items .. if i sold vero i would just email overseas for 10 more or 50 more or whatever more i needed .. we call it selling 'CANS OF SOUP " on the wholesale side...

paradisedistribution · #38 02-23-2010

I'm a CPA, registered in FL and MI. This 1099 thing won't standup. I know there are several articles out there on it. I would be VERY suprised if Ebay or Paypal or ANYONE sends you out 1099s for your sales. It's not what a 1099 is for.

1099 forms are for SERVICES PERFORMED. Not for sales of items. If you auctioned off your services for creating a website, that is a 1099 item. If you sell 500 laptop computers, that is NOT a reportable transaction. Take a look at the boxes of the 1099 forms. Not one covers the sales of products.

Think about it. It would be no different than you buying items from Best Buy online. You are then going to send Best Buy a 1099 form?? Or the credit card processor is? No way.

If this does start to happen, the IRS courts will be overwhelmed with thousands of court cases. It's not going to happen.

Having said the above, I don't suggest you non-report your ebay business or sales. If you are doing a volume of $20k+, be smart. There is a paper trail out there. Report it and hire a bean counter to write off every possible deduction to make sure you don't pay a dime more than you should to help our Government fly to another country for vacation when they tell people they're really wasting our dollars hiking in the mountains........

First Edition · #39 02-24-2010

Quote:

Originally Posted by paradisedistribution

1099 forms are for SERVICES PERFORMED. Not for sales of items. If you auctioned off your services for creating a website, that is a 1099 item. If you sell 500 laptop computers, that is NOT a reportable transaction. Take a look at the boxes of the 1099 forms. Not one covers the sales of products.

That is my point. It doesn't make sense.

gibsonton · #40 02-24-2010

I called Paypal today ..I have had the same account for 10 years and over 20,000 transactions , i dont use a stealth account - so if you have any other questions i can always call and ask ... i asked the CR and he said he didnt think it would be a 1099 but it will be some kind of account summary statement of Money Collected that they will REPORT TO THE IRS with your SS# or Tax ID .. I told him they have never got my SS # back in 1999 when i opened the paypal account and he they will be required to verify your ss# and MOL pull your credit or your account will be frozen or cancelled as this is a law that went into effect due to the government suspecting terroist were laundering or sending money to each other through paypal accounts and sellers under reporting their income .. Sorry i should of just called them and asked to begin with -yes First Edition you were correct on the 1099 but either way it is still going to be reported -so everyone keep good records.

First Edition · #41 03-05-2010

Yes, good record keeping, good advice.

You should probably always report the income on your taxes regardless. I'm not so worried about the reporting, I'm more worried about creating stealth accounts in the future

oge · #42 12-03-2011

I remember this thread a few peeps are biting their tongues?

jamblix · #43 12-03-2011

I was reading this entire thread thinking it was being discussed now haha.

To comment on the drop shipping, I can see why people would want to. Having experienced it though I would not recommend it. A good portion is just out of your control and for me It's much more fulfilling having your assets in your grasp.

The best thing is you make more money when you do it yourself, with enough research you can find good deals everywhere. The deals the drop shippers are getting themselves even. I started with small things that could fit in a room and grew. Every seller has their own strategies, just gotta find one that works for you.

Saying what I do as not having a "real job" is bull**** to me as well. I'd rather do this then wear a monkey suit and go to work at 8am for a corporation that I hate. What we do takes work and that fits the description of "job" pretty well. I don't create auction templates, receive, pack, ship, sell, handle customers and so forth for fun.

The decision of selling ⊗⊗⊗⊗ is yours to make, it is not "easy money" as someone mentioned earlier. More risk = more reward. You would call a successful bank robber as having it easy sure, if that same bank robber got busted he's in for some hard ****. Since most of us are in stealth mode though, why not?