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IRS Wants to Tax Online Sales
http://www.dailytech.com/article.aspx?newsid=7191
Interesting....I'd think that selling used items wouldn't apply since sales tax has already been collected....
Or, you buy something for $100.00 that gets taxed and you sell it for $50.00...If we pay the IRS tax on the fifty, we should be able to deduct the "loss" on our regular returns...
Or maybe they could do away with sales tax all together incase we sell it...
The worst part of this proposal isn't the taxing part, it is the data collection. The IRS waants to collect the SSN and other personal info of all of the buyers using online sites. This isn't likely to go anywhere in its present form.
Old news recycled. However, I'm prepared. I'll buy a genuine fake SSN from the people who sell them to our beloved illegal immigrants, then claim exempt status as a charitable organization (all proceeds go to a worthy cause - keeping us off public assistance).
All kidding aside, that will kill eBay and the others in short order. Too bad, too, since thousands of people make an honest living (more or less) with their computer and already pay income taxes on the proceeds.
As lgbpop has said, taxation of internet sales has been considered for years. There is even a 1992 Supreme Court decision which restricts collection of State taxes if the seller has no "presence" in the buyer's state.
http://www.eweek.com/article2/0,1895,1866715,00.asp
I would suspect eBay, etc, would fight this to the end--on the grounds of discrimination, if nothing else, by singling out one category of sale for Federal taxation.
Steve R Jones--If you sell for less than you bought, there is no "income" to tax. Rather you have a loss. In order to tax any gain from a private sale, I would think the IRS would, indeed, have to allow deduction from income for any loss. Just think of all the deductions we could get for selling our used cars!! So this new proposal would seem to have some problems in implementation.
Selling of a house is different, however. A loss on the sale of a house is not permitted as a deduction, whereas a gain is taxed (as a capital gain). The IRS' rationale is that the gain is first reduced by hefty amount depending on marital status and how long you have lived in the house. Often this results in no taxable gain.