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

f82 said:
Instead of us getting taxed on $20,000 AND 200 + transactions .. we'll get taxed when we sell more than $600 on goods starting in 2022

www.twrblog.com

American Rescue Plan Act Clarifies Scope of Form 1099-K Reporting and Reduces De Minimis Threshold

On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (the “ARPA”) into law. The ARPA includes clarifying language regarding the
www.twrblog.com www.twrblog.com
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Good.

Get a real job and stop ripping people off for goods you didn't create.
 
The housing market is a joke too.
Flipping a home is not frowned upon, but one can’t do the same for shoes? Everything out there is a flip. I don’t hate the hustle at all.

we’ll be seeing a lot more taxes happening. These bail outs won’t pay for themselves.
 
This income threshold thing is interesting. Can they differentiate between a reseller and someone just selling off their collection as a sort of garage sale?
Do they factor in your costs of the good and tax only on the net profits? If I bought a pair of shoes for $65 and flipped them 4 years later for $150, what figure are they looking at?
Some of these fees are already out of control. Ebay even takes sellers fees from the subtotal (including the sales tax from the buyer). They’ll take their 12.35% off of the $47.98 subtotal ($45 plus $2.98 tax) and not the $45 that you received
 
marikomorose said:
Digital dollars is becoming the most dangerous form of currency. The ****ing government is gonna use it more and more to **** over the "little" ppl. Physical & cyrpto is the way to go as the rich get richer and the poor get poorer. The online sales tax talked louder than anything else.

Life is meaningless if we live to pay taxes.
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Can we collectively agree & acknowledge who the U.S. Government has and continues to completely fail Millennials? Like there's a reason Issa is driving Lyft on Insecure...The little (wo)men continuously gets ****ed. I haven't touched not one of those damn stimmy's despite seeing everyone around me & here getting them. Free money my *** :lol:

They just love ****ing us. I'm sick of this ****ing country. They really went from $20k to $600? People can't even make poverty cash anymore.
wallyhopp said:
This income threshold thing is interesting. Can they differentiate between a reseller and someone just selling off their collection as a sort of garage sale?
Do they factor in your costs of the good and tax only on the net profits? If I bought a pair of shoes for $65 and flipped them 4 years later for $150, what figure are they looking at?
Some of these fees are already out of control. Ebay even takes sellers fees from the subtotal (including the sales tax from the buyer). They’ll take their 12.35% off of the $47.98 subtotal ($45 plus $2.98 tax) and not the $45 that you received
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They don't give a ****. I just sold some TS lows I held on to b/c they were too big that i paid resale for. Why should I get taxed for that? I had to sit on about 1k and wait more than a year to get my money back b/c I couldn't just return them. Like why would they look at that situation and say "you owe us for that?" I am really just starting to just hate this place :lol:
 
wallyhopp said:
The housing market is a joke too.
Flipping a home is not frowned upon, but one can’t do the same for shoes? Everything out there is a flip. I don’t hate the hustle at all.

we’ll be seeing a lot more taxes happening. These bail outs won’t pay for themselves.
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I don’t know if you were replying to his comments about the validity of the job or being taxed. I don’t have anything to say on the former but as for the latter, realtors pay taxes :lol:

wallyhopp said:
Can they differentiate between a reseller and someone just selling off their collection as a sort of garage sale?
Do they factor in your costs of the good and tax only on the net profits? If I bought a pair of shoes for $65 and flipped them 4 years later for $150, what figure are they looking at?
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You would pay it on what you sold it for (the $150).

marikomorose said:
I just sold some TS lows I held on to b/c they were too big that i paid resale for. Why should I get taxed for that? I had to sit on about 1k and wait more than a year to get my money back b/c I couldn't just return them. Like why would they look at that situation and say "you owe us for that?" I am really just starting to just hate this place :lol:
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You bought an item that said “No Returns”. You put yourself in a pickle right there knowing there was a risk they might not fit, you might not like them, etc. you are selling a good so you are subsequently taxed for it. Most companies sell items for a loss at some point. Should they be exempt from taxes? This is no different.
 
storm2006 storm2006
I found this article just now
www.cnbc.com

It's going to become harder to avoid telling the IRS about income from selling stuff online. Here's what to know

The recently enacted American Rescue Plan Act significantly lowers the threshold for when online sellers will receive a tax form.
www.cnbc.com www.cnbc.com
It’ll be interesting to see what people end up doing. I guess it’s time to keep receipts on everything in the event the item gets resold in the future.
I also see the IRS is going about crypto tax cheaters.
I wonder if the casino or prize winning thresholds will be lowered. Tangible cash may soon be looked at as negative and the government changes all of it.

For now, I just feel prices will rise 10-20% to cover the taxes the sellers will now be faced with.
 
Guess it's time to stop procrastinating and move all my dust (or glitter in some cases) collectors.
 
Major resellers won’t give a **** b/c that’s a large chunk of income. Personally this means I’ll be buying only from places that accept returns. I don’t buy to resell, but I do off older pairs and pairs that I received and don’t like. This essentially kills that for me. Trash.
 
wallyhopp said:
This income threshold thing is interesting. Can they differentiate between a reseller and someone just selling off their collection as a sort of garage sale?
Do they factor in your costs of the good and tax only on the net profits? If I bought a pair of shoes for $65 and flipped them 4 years later for $150, what figure are they looking at?
Some of these fees are already out of control. Ebay even takes sellers fees from the subtotal (including the sales tax from the buyer). They’ll take their 12.35% off of the $47.98 subtotal ($45 plus $2.98 tax) and not the $45 that you received
Click to expand...

As an individual, yes you would get taxed on the full amount. If you have an llc you would have the opportunity to do the math on net profits and declare the actual profit or income. You may be able to do something as an individual if you itemize deductions but I'm not 100% sure how that would work.
 
Resellers are about to get hit, simply because too many white people have gotten involved. Culture Vultures, opportunists, those who only see the money making aspects of a culture. So now, even kicks that would normally sit, are suddenly selling out for no other reason than the brand name. Just like everything they've become involved in, it becomes played out pretty quickly. Actually, I am beginning to see it happen already.
 
wallyhopp said:
The housing market is a joke too.
Flipping a home is not frowned upon, but one can’t do the same for shoes? Everything out there is a flip. I don’t hate the hustle at all.

we’ll be seeing a lot more taxes happening. These bail outs won’t pay for themselves.
Click to expand...

House flipping isn’t comparable because typically the flipper added some tangible value.

creating artificial scarcity by hoarding commodities is what resellers do. They add nothing of value to the item they’re selling. In the rare cases when this is done with property it IS frowned upon.

In terms of the taxing resellers, I can’t think of a single reason why they shouldn’t be taxed. Their taxes should mirror capital gains. I mean they sell their stuff on STOCKx. Clearly they see it as analogous to the equities market.
 
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wallyhopp said:
storm2006 storm2006
I found this article just now
www.cnbc.com

It's going to become harder to avoid telling the IRS about income from selling stuff online. Here's what to know

The recently enacted American Rescue Plan Act significantly lowers the threshold for when online sellers will receive a tax form.
www.cnbc.com www.cnbc.com
It’ll be interesting to see what people end up doing. I guess it’s time to keep receipts on everything in the event the item gets resold in the future.
I also see the IRS is going about crypto tax cheaters.
I wonder if the casino or prize winning thresholds will be lowered. Tangible cash may soon be looked at as negative and the government changes all of it.

For now, I just feel prices will rise 10-20% to cover the taxes the sellers will now be faced with.
Click to expand...

Thanks for posting this. Very interesting.

" This means that in early 2023, you could receive a 1099-K for online sales you make in 2022. And this would be the case whether you’re an occasional seller or are operating as a business, as long as you sold more than $600 worth on a single platform. It doesn’t necessarily mean you’d be taxed on the money, but you would need to account for it on your tax return. "

So basically, people still have 9 months to sell all the shoes they want. Then maybe the shoe game will go back to normal, and all the resellers will go off to something else. Look at this chart from that article

1617577261008.png


That's wild that it's the 2nd leading. Jewelry seems higher than you'd think it would be but anyway, that's crazy. Hopefully that dips down to like 1/5th instead of 1/3rd. I want it to go back to the way it was when you could actually get a shoe.

It'll also be interesting to see if marketplaces react to that (there's certainly plenty of time in advance) and use loopholes to segment the market to help sellers avoid penalties.
 
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.
 
Public Enemy said:
It'll also be interesting to see if marketplaces react to that (there's certainly plenty of time in advance) and use loopholes to segment the market to help sellers avoid penalties.
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There will be for sure loopholes. Plenty of time to start plotting too

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.
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Are you just anti-tax? If so, can explain why?
 
I’m anti- being over taxed. Did you know lottery winners who then give away $$ have that money taxed too (on the receivers end). $100,000 could end up being taxed some 55-70% when it’s said and done.
In the same sense, 13 states tax social security income (even though you were taxed on it when you worked).
 
If I’m being taxed on a item I sell at a loss for the second time, the after market resell really may be gone. I can see OPs point. Stockx or goat aren’t great examples since most are at 200% profits. But let’s say Ebay. I buy shoes 5 years ago for $150 shipped with tax included. Today I sell them for $100. I’m already taking a $50 hit, plus they’ll tax me a second time? Maybe I’m looking at it wrong. How am I being taxed on a loss? That’s a business loss through and through.

I know in my city, there are garage sale type codes of conduct and enforcement rules. You can only have 2-3 per year and they can’t run longer than 3 days. They don’t want you running a true resell business. Remember that extreme coupon clipping show? Some people had whole garages full of tooth paste and shampoos. And then they would have yard sales and hustle it out that way. They want their piece of the pie. This may truly bring back the cash only transactions. I could see places offering 5-10% off for cash only.

There’s also side of street vendors and flea market hustlers. Maybe we were too lenient on all of this for too long?
 
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