StockX and GOAT will die out for sellers due to Biden's American Rescue Plan Act

orsrt8 said:
Complete BS. So I got taxed when I bought the item at and will get taxed again if I sell it. SMH
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not likely. That would probably lower your tax bill as long as you have proof of purchase price.
 
storm2006 storm2006 im actually okay with being taxed on the initial buy vs. final sale difference , and that difference only affecting my AGI. For the $150 purchase , and $300 total sale, I’d be okay with $150 going to agi and then some % to taxes. But going after the $300 like the $150 doesn’t exist is double dipping.
 
Oh and just an fyi, you were always supposed to report ANY income you received regardless of the amount. This law is really just for the middlemen service/market providers to start reporting amounts over $600 to the IRS directly.
 
^very true. These are pandemic times. I feel both sides are hustling to keep things in their favor. These stimulus checks won’t pay for themselves. So they are going after the lower hanging fruit for any extra tax income. These increases are inevitable. You can’t fault them there. And some of the sellers are caught up in bad times with lower than normal sales and yet increased taxes. It’s a no win situation for many.
I know the standard deduction increased under trump to the point of making itemizing nearly pointless. But now is the time to itemize everything to your best ability.
 
wallyhopp said:
^very true. These are pandemic times. I feel both sides are hustling to keep things in their favor. These stimulus checks won’t pay for themselves. So they are going after the lower hanging fruit for any extra tax income. These increases are inevitable. You can’t fault them there. And some of the sellers are caught up in bad times with lower than normal sales and yet increased taxes. It’s a no win situation for many.
I know the standard deduction increased under trump to the point of making itemizing nearly pointless. But now is the time to itemize everything to your best ability.
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Get a LLC. You subtract cost of goods, office/supply expenses, postage, gas, etc...100% right off the bottom line of your 1099. Then carry that net profit from the business over onto your individual tax return form 1040 AND take the standard deduction off of that!
 
^any lower level limits or costs involved? Online sales/side hustles have never pushed past $5,000 for me. Is there a LLC Registration type cost? I’m pretty keen on tax type issues or situations. It may finally pay to itemize. I can nickel and dime with the best of them, If the irs decides to do the same.

If the llc license and fees exceed $1,000, I might as well pay the new taxes until the profits actually mean something.
 
Looks like everything is getting moved in Cash. Cold day in h*ll before I pay taxes on shoes I decided to sell.

Fwiw I’m not even a conservative and I think this is trash. All the big resellers are already paying taxes this just hits the little guy.
 
Agreed this just hits the lil guy. I just sold like 5, pairs of shoes for 1500 on ebay. I've had all of them for years (maybe 5+) and I have on a vague memory of what the shoes originally retailed for.


All of the sneakers were at least gently used some greatly used but they retained their value. I hate to think I would be taxed because I basically just wanted to do some spring cleaning.
 
wallyhopp said:
Glad this thread isn’t getting political. This isn’t the only tax increase Biden has in store. The first thing the governor of my state (D) did when she got elected was to add sales tax to Amazon purchases. At the time, they needed to have a physical footprint in order to have sales tax. They found some loophole to change all of that.

If the increases get too out of hand, I can see some places doing cash only and under reporting the hell out of their income.
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It wasn’t a loophole. It was the Wayfair decision by the court which said you no longer need physical presence but just need economic nexus and the state or city can determine what amount of revenue constitutes that economic nexus. Every state jumped on it as soon as this decision was passed within a year.
 
アキラ said:
Won't this cause resellers to jack up the prices even more to make up for the tax?
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Could still be a race to the bottom for general releases.

Some dude tries to sell a shoe for $250, but can't move it cause someone else is selling it for $240 and so on.
 
This is definitely going to reduce the amount of people who sell things online.

PO
 
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