Learn to buy and sell antiques and collectibles
Free Newsletter
The IWantCollectibles Newsletter provides tips and advice for anyone with an Antiques, Collectibles or eBay business!

 
More Antiques and eBay Newsletter Information

What Does PayPal Sending 1099 Forms To eBay Sellers Mean?



Robert sent in this question: “I heard PayPal will start sending 1099 reports to the IRS this year. What does this mean to eBay sellers?”

* * * * *
Are common eBay selling mistakes costing you money? This short quiz will help you earn more money in your eBay auctions.
Check your eBay knowledge now.

Starting in 2011, PayPal and all merchant processors will send 1099 forms to the IRS for all cleints who have done 200 or more transactions and have total sales over $20,000.

Read that again. That’s not an OR statement, it’s a BOTH statement.

This means that most eBay sellers won’t be effected by this change.

If you are effected, or think you might be effected by this change, you should make sure you are keeping track of the costs associated with your eBay business.

The 1099 form only shows gross sales. When you do your taxes, you subtract your costs from your sales to determine the profit.

Remember your costs are everything involved in running your eBay business. Here’s a few common deductions for eBay sellers:

  • The cost of the items you sell.
  • The use of your car for business. The IRS will allow you to take a deduction for every mile you drive on business.
  • If you use your eBay selling room for nothing else, you can deduct a portion of your housing costs. That’s rent, or mortgage payment, plus utilities for the year times the size of your house divided by the size of the room you use.
  • The cost of packaging supplies.
  • Bank, eBay and paypal fees. Bank fees are shown on your statement each month. EBay fees are simple to find because you get an invoice each month. PayPal makes it hard to see their fees. A simple formula for determining PayPal fees is (transactions X .30) + (gross receipts X .029).
  • Remember I’m not an accountant, and I don’t give legal or accounting advice. I only cover these topics so you can get an idea of the questions you should ask your accountant.


    Did this answer your question? If not, try looking at the questions and answers within the
    General, PayPal And Other Payment Methods category, or do a search for other questions.
    If you are unable to find an answer to your question, send me an email, and I will answer it.


    Many of the articles and free reports here on IWantCollectibles were originally sent to readers of my Antiques and eBay Newsletter. Not all articles make it onto the website, and readers also get notices of free reports and special offers.

    Ted at his desk.

    Most Popular Articles on IWantCollectibles
    • Finding Products To Sell On eBay
      How to find products to sell on eBay is the most common question I get from my readers. This page has links to all the articles and reports I've written about finding eBay products.
    • How To Be An Antique Dealer
      The best way to start an antiques or collectibles business. Part 1 of a five part series on being an antiques dealer.
    • Understanding eBay Changes 2011
      This page covers eBay changes and has links to all articles on IWantCollectibles about working within the changes. Sign up for my free newsletter for articles covering new changes as they are announced.
    • Tips for Starting an eBay Consignment Business
      Selling on consignment is the perfect way to start on eBay. This article is an introduction to consignment selling, and explains what you'll need to be successful. First in a series on eBay Consignment.
    • Shopping For eBay Products At Garage Sales
      Thirteen tips for garage sale shopping. Part one of a two part series on garage and yard sales.
    • Finding New Products for eBay
      If you want to sell new products you need to concentrate on items others are not selling. You need to find sources other sellers are unaware of. That is not hard to do. Here's a list of articles to get you started on the right path.
    • eBay Auction Category, Title And Keyword Advice
      A series of articles about getting your items found on eBay. Covers category selection, eBay keyword rules, and researching keywords. Finally you'll learn how to write an informative, keyword rich title.

    Summaries Of Recently Added
    Antiques, Collectibles and eBay Articles

    • A Few Quick Buying Stories
      This article has 11 short stories about buying antiques and collectibles. Each has a simple lesson to help you become a better purchaser of used items for resale or your collection.
    • 11Main.com is DOOMED - a Review
      In February 2014, Vendio announced a new auction site - 11Main. Vendio provides tools for eBay sellers, and runs a huge auction site in mainland China, so this should be a good competitor. I signed up back then, and have been keeping notes over the past 5 months about what I've done. In June, I examined the site and decided to stop wasting my time.
    • EBay Auction Sales Down?
      Due to the recent hack of eBay, and the requirement that users change their passwords, many buyers are having problems bidding. This means auction results are down. EBay has announced they will allow sellers to cancel auctions - even ended auctions without penalty. This article has more information.
    • Some Observations On My 2013 EBay Effort
      While doing my taxes, I started thinking about last year's results. This article just has some quick lessons based on my results.
    • The Fixed Price Trap
      Are you caught in the fixed price trap? This article explains how eBay sellers damage their businesses by falling into the Fixed Price Trap, and some suggestions for avoiding the trap.

    More Antiques, Collectibles, and eBay Articles


    Free Antiques and eBay Newsletter

    eBay Questions and Answers

    About .

    Contact Terry

    Free eBay Ebooks

    eBay Resource Reviews


    eBay Advice

    Antiques Advice

    Antiques and eBay Reports


    eBay Articles
    11Main.com is DOOMED - a Review

    Finding Products To Sell On eBay

    What to Sell On eBay?

    How eBay's Best Match Search Works

    How To Sell On eBay For Beginners

    The Drop Shipping Myth Explained

    Dealing With eBay Changes 2012

    Overcoming Common eBay Seller Frustrations

    27 Ways To Find Antiques To Sell On eBay

    Advice for Writing and Selling Ebooks On EBay

    Selling Antiques On eBay

    Using Facebook and Pinterest to Promote eBay Auctions

    Tips for Starting an eBay Consignment Business

    eBay Title Tips

    Selling At Antique Shows Versus On eBay

    Buying eBay Products at Yard Sales

    Finding eBay Products At Garage Sales

    23 Tips For Taking Better eBay Pictures

    Finding Wholesale Products To Sell On eBay

    How To Use eBay Listing Upgrades And Options Efficiently

    Does An eBay Store Make Sense For You?

    Some Observations On My 2013 EBay Efforts

    Should You Be Selling With Fullfillment By Amazon Too?

    Minimizing eBay Fees

    19 Ways To Quickly Improve Your eBay Auctions

    eBay's Detailed Seller Ratings Reexamined

    The Fixed Price Listing Trap

    Finding eBay Keywords For Old Items

    Adding Youtube Videos To Your eBay Auctions

    Commonly Used eBay Abbreviations

    How To Drive Traffic To eBay Auctions and Websites

    Selecting The Best Category And Keywords For Your eBay Auction

    Finding eBay Products By Finding People

    Identifying eBay Products People Want

    Signing Up People For Your eBay Consignment Services

    Motivating eBay Auction Visitors To Bid

    Getting Started Selling On eBay

    eBay Keyword Rules Explained

    How To Add Free Pictures To eBay

    eBay Selling Tips

    Free eBay Shipping Calculator

    Shipping Advice for eBay Sellers

    eBay Packing With Paper

    eBay Arbitrage Profits

    Figuring eBay Consignment Fees

    How To Have Negative Feedback Removed For Under $500

    Finding Antiques And Collectibles To Sell On Ebay


    eBay Reports

    Setting Your Ebay Business Up For Growth

    Start Your Own eBay Consignment Business

    Finding Profitable eBay Niches

    Finding Profitable Hidden Bargains at Garage Sales

    Finding Wholesale Products To Sell On eBay

    Secret eBay Product Sources

    Selling Public Domain Items on eBay

    Recent eBay and Antiques Questions

    Affiliate Center

    IWantCollectibles.com Sitemap
    © Copyright 2001-2014 Terry Gibbs
    The Auction Revolution is a product of IWantCollectibles LLC
    IWC LLC PO BOX 842, Mesa, AZ 85211