Unbelievable! When you are clearly not a business, you should not have to pay taxes! This is infuriating! It's almost better to consign if that is the case. Talk about taking a bigger loss! They take 50% but at least you are not taxed that way. Grrrr
MINKIE CHAT THREAD ..... Let's chat! (4)
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I agree on the consigning but it sucks to have to take such a big loss! I guess it’s better than paying taxes. At this point just trying to be really careful with what I buy.
the only bags I've sold recently have been through the local consignment shop.....do you get a 1099 even on a small sale?
Selling through a consignment shop pretty sure you don’t have to worry about it. Selling on sites you have to do the 1099 if you reach $600+ In sales.
yes, I'm not worried about the consignment shop sales. And I'm not likely to reach $600. Thank you.
My understanding is that the tax rules haven’t changed— you only pay taxes on profits, not total revenue. So it is incumbent on you to keep records and receipts of the purchase price of items so that if you get audited you can show what you purchased the item for vs. what you sold it for. The change recently has been in the reporting, previously it was an honor system where you had to self-report resale income and pay taxes on the profits but now all the resale sites (and PayPal and Venmo) are now required to report total transactions/revenue over $600. But the rule hasn’t changed that you only pay taxes on any profits you make, even if you have revenue over $600 (if everything you sold doesn’t make a profit you don't have to pay any taxes).
OMG, thank you so much @Sassy for explaining this to me!! I am not on top of tax rules at all. Hubby and I file separate since he is self employed....and the accountant he was using all these years retired so I was going to do my own taxes online and was having a panic attack over this!!! Ahhh, I feel so much better now!!! Thank you again for chiming in!!! Virtual hugs to you!
How many of y’all really keep and organize all your bag receipts? Asking for a friend 
not me but sometimes if I buy a bag new I keep the tags in the inside zip pocketHow many of y’all really keep and organize all your bag receipts? Asking for a friend
My expensive bags I tend to keep things more organized in a safe. My bags that are a few hundred or less it’s hit or miss to keeping receipts. It gets overwhelming and I’m never going to add them up!
I keep retail ones (or even some from shops like TRR) but haven't kept pre-owned ones. I figure I can always look it up in my account or email?
Ebay told me they wouldn't send me a 1099 unless I made $20,000 in sales.Are they all doing the 1099s now? I thought it was just ebay? I would totally understand if I was a business but I'm not, in fact most of the time I'm losing money, not making more. It's stuff I've bought for myself, tired of it and just wanna sell to recoup some money. I don't think it's right that I have to pay taxes on that, whatsoever!!!
I am not an expert by any means but there was a lot of discussion on the topic on a FB resale group. I think reselling has become big business during the pandemic, especially resales of luxury brands, so IRS wants its cut!OMG, thank you so much @Sassy for explaining this to me!! I am not on top of tax rules at all. Hubby and I file separate since he is self employed....and the accountant he was using all these years retired so I was going to do my own taxes online and was having a panic attack over this!!! Ahhh, I feel so much better now!!! Thank you again for chiming in!!! Virtual hugs to you!