Testy Tuesday – Dressing the Windows at our Bounce Lines
by phil - September 30th, 2014 8:09 am
First, the big news:
EBAY has finally agreed to spin off PayPal and that's going to give us a nice boost in our Income Portfolio (which we fortunately just adjusted more aggressive yesterday) and EBAY has been on our Buy List (Members Only) since 5/20, when they were testing $50 and, as I said to our Members when I predicted an earnings beat in July:
Paypal, Paypal and Paypal. They should beat the .68 expectations (.63 last year) and all of last year they traded in the $50s, so why should they be below it now when they are making $3 a year (p/e 16.7)? Compared to the rest of the market, this thing is a real bargain!
They beat by a penny and, as you can see from the chart, that was enough to kick them up 10% and we recently got a nice re-entry at $50, when we took advantage of the spike down to sell more 2016 $50 puts for $5.50 which were up 15% at $4.80 at yesterday's close – not bad for a month's work and they should be up 30% by the end of today!
Today we will see an all-out effort to keep the markets afloat so the books on Q3 can be spun positive by the Banksters, who have Trillions of Dollars riding on the outcome.
Of course, we KNOW that no Bankster would ever attempt to manipulate the Market, or LIBOR, or Currencies, or Ratings… Well, not if they knew for a fact they would get caught AND the punishment was more than a slap on the wrist, anyway. Thank goodness, that never happens.
As you can see from our Big Chart, the S&P came to a rest right on the 50 dma at 1,977 so that's the do or die line for the day while it's 4,495 on the Nasdaq. On the Dow we want to see 17,100 taken back and the NYSE needs to hold 10,750 while the poor, beleagured Russell just needs to hold that 1,110 line. Officially, our bounce lines remain:
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New IRS Reporting Rules to Hit eBay and Paypal; Government Crackdown on Trinket Sellers; Campaign Bribes and Tax Policy
by ilene - September 20th, 2010 4:45 am
New IRS Reporting Rules to Hit eBay and Paypal; Government Crackdown on Trinket Sellers; Campaign Bribes and Tax Policy
Courtesy of Mish
Inquiring minds are interested in 2011 tax policy changes that will affect sellers of merchandise on eBay. John R writes ….
Starting next year Paypal will have to start reporting to the IRS. The selling limits will be 200 items or $20K before they report. This tax change was part of the ’08 stimulus.
Reporting on 200 items annually is a real killer. That’s a mere 17 items a month. We’ve already shut our eBay business down. It’s simply not worth the effort.
Most eBay/auction site margins are extremely low. Thus, I wonder how many people will set up a business, keep the books, pay state and federal taxes, just to make a few bucks.
Thanks,
John
New Form 1099-K will debut for 2011 tax year
John is discussing eBay Sellers and Tax Changes
Tax time is upon us again, and this year the IRS has a bit of a warning for eBay sellers: next year you’ll be on the hook for the taxes you owe.
Enter the 2011 Form 1099-K
Though sellers won’t have to change their filing habits in 2010, a new Form 1099-K for 2011 promises to change income reporting by online sellers. The draft Form 1099-K for 2011implements payments reporting to the IRS for PayPal and credit card merchants, much as already happens with forms W-2 or 1099-MISC for employees and independent contractors.
Starting in 2011, therefore, sellers will be expected to report gross payments via online or credit card payments that coincide with reported 1099-K amounts, then to make adjustments to account for expenses and cash equivalents, fees, chargebacks, refunds, and so on.
Details and Caveats
As a practical matter, if you’re an eBay seller, this will affect you unless your gross sales are under $20,000 for the year or you receive fewer than 200 transactions. Reporting for small sellers at this level is not required.
Otherwise, if you exceed this volume, you’ll be required to provide tax identification information (SSN or EIN number, for example) to payment processors like PayPal and will be expected by the IRS to account in your return for the amounts reported on your 1099-K form(s).
The 1099-K form wasn’t introduced for the 2010 tax year, so as you do your taxes this year, enjoy