Attention all you Ebay sellers- this is one proposal you may want to
get behind- Bush may ask for a law to be passed, whereby Ebay sales
would come under the IRS tax umbrella- and Ebay would actually issue
a
statement, similar to a W-2 or 1099 form, showing total sales and
total transactions for each seller on Ebay per year.
Now the good part- all sales under $5000 per year, or under 100
transactions per year, would be exempt !
This is a WIN-WIN for most small Ebay sellers- and basically a $5000
tax shelter for the average guy/gal selling on Ebay. Reason- most
Ebay sellers fall under that amount of sales, and would be considered
exempt ! If you sell on Ebay and are claiming $5000 or less in gross
sales currently, it would all become TAX FREE ! You would no longer
have to claim it !!
"W" would basically be giving us all a $5000 tax deduction every
year,
on sales of used household goods !!
Check it out:
http://arstechnica.com/news.ars/post/20070515-details-emerge-on-irs-p
Details emerge on IRS plans to tax eBay auctions
By Nate Anderson | Published: May 15, 2007 - 11:55PM CT
Changes are contained in the President's 2008 budget proposal.
Instead
of targeting only Internet auction sites, the current proposal
actually expands the definition of a "broker" to include middlemen
that don't actually function as the customer's agent in a
transaction--
like eBay, for instance. Brokers currently need to file a form with
the IRS that gives the name, address, and gross proceeds of each
customer they work for; under the new proposal, many more companies
would need to do the re****ting.
The Treasury Department wants the change because, as the budget
request notes, "compliance increases significantly for amounts that a
third party re****ts to the IRS." But this isn't a change that will
apply to all eBay sellers; in fact, most will be exempt from the new
re****ting requirements.
Internet auction sites will only be required to re****t customer
revenue information if the customer does more than 100 separate
transactions in a fiscal year and generates more than $5,000 in gross
proceeds. In a re****t from the Information Re****ting Program Advisory
Committee (part of the IRS), the new proposal is sup****ted by a 2005
study showing that over 700,000 Americans have a primary or secondary
source of income through eBay.
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