Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Are you one of those pro gubment types who bows down to the altar of an alphabet soup agency like the IRS even though it has no justification for existing?
LOL. Unlike you I work full time in a high-tax state. You've never heard of *effective* tax rates and loopholes these people often use and you're a retired CPA Buckeye? https://www.americanprogress.org/iss...-ultrawealthy/
The "This is fine" attitude you people have is why this country has gotten worse over time.
Loopholes? Lol!! Preferential treatment of capital gains isn’t a “loophole.” Furthermore, that preferential treatment is available to everyone, not just the evil rich.
Loopholes? Lol!! Preferential treatment of capital gains isn’t a “loophole.” Furthermore, that preferential treatment is available to everyone, not just the evil rich.
We have met the enemy , and he is us ….this has never been more truer ….everyone with taxable gains gets the same tax breaks.
In fact the little guy has a better deal …the zero capital gains bracket.
Are you one of those pro gubment types who bows down to the altar of an alphabet soup agency like the IRS even though it has no justification for existing?
LOL. Unlike you I work full time in a high-tax state. You've never heard of *effective* tax rates and loopholes these people often use and you're a retired CPA Buckeye?https://www.americanprogress.org/iss...-ultrawealthy/
The "This is fine" attitude you people have is why this country has gotten worse over time.
Again, even with those "effective tax rates" and "loopholes", the facts are that the top 1% pay 40% of the income tax revenues, and the bottom half pay a pittance (3%). Actual payments, not "shoulda, coulda, woulda" made up numbers.
And your own posts suggest that you think that 3% is too much for the bottom half to pay.
If you actually read the article, you will see that the top 5% pay 60% of the taxes, which means the bottom 95% pay less that the top 5%. I suppose you think that is fair.
p.s. I always loved a well prepared form 4797
Last edited by Buckeye77; 07-30-2021 at 08:27 PM..
Not everyone who sells stuff online has a business. Say you sell your car on eBay and require a $1000 deposit after the auction ends to hold it. Now you have to pay taxes on that deposit and perhaps the entire purchase price for that vehicle. Same thing if you are just clearing out the garage and instead of having a garage sale you stick the stuff online and ship it out. The whole point of the $20,000 200 transactions was to 1099 those who are obviously conducting a business. Someone clearing out their garage would not be subject to the 1099 rule. Obviously anyone selling online as a business even much less than $20,000 still has to report it.
All that personal stuff you sold is still subject to taxes, but you can deduct the purchase price and only pay tax on the net. Oh, don't have receipts? Oops, may lose the deduction if you get audited. If you sell a car, it's probably at a loss, so no tax due there, either.
All that personal stuff you sold is still subject to taxes, but you can deduct the purchase price and only pay tax on the net. Oh, don't have receipts? Oops, may lose the deduction if you get audited. If you sell a car, it's probably at a loss, so no tax due there, either.
I really think that may be a huge element that some are apparently not understanding.
If you have any record of what you paid, or even the FMV when you inherited or acquired something...essentially any kind of paper trail that a reasonable human being would take as an established "basis" for what your initial cost was (or in the case of inheritance, and I'm not sure about gifts but I think it's the same, the FMV at time of acquisition)... Then if you sell, then you get to subtract that from whatever you get and THAT is what you pay taxes on. Even if the number you plug into your tax forms is not the same as what the number on the form from Ebay is, if you have proof that you had cause to adjust, then you should be totally fine.
Some of us (like my husband) are going to need to adjust habits and keep better purchase records.
Now in the case of a CAR...I'd be more than a bit shocked if someone had no record of a value basis at the time when they got the vehicle. That can't be common. And usually people sell cars for less than what they paid to acquire them, so as you say...no tax on that.
In my whole adult life of dealing with taxes, I have not actually found the IRS to be unreasonable in what they expect me to pay taxes on. The only "problem" I see is that tax code, the forms and instructions and all the qualifying worksheets and details...are often really complicated. Like, if anyone wonders why we did all of those "word problems" in school math classes... I believe myself to have reasonably solid reading comprehension skills but I have found myself reading things published by the IRS a few times to make sure I understood. The complexity can be a bit frustrating. I don't want to hire someone to do my taxes, I have always stubbornly believed that it's NOT beyond my ability to comprehend, it's only a matter of me putting my time into it. If I can't prepare my own taxes I feel that I have no business doing the analytics and data science type work that I do for a living.
But yeah, I guess it's kinda understandable that people get confused and worried about what they hear.
Though, again, I do raise an eyebrow when said person refers to "clients."
...
In my whole adult life of dealing with taxes, I have not actually found the IRS to be unreasonable in what they expect me to pay taxes on. The only "problem" I see is that tax code, the forms and instructions and all the qualifying worksheets and details...are often really complicated. Like, if anyone wonders why we did all of those "word problems" in school math classes... I believe myself to have reasonably solid reading comprehension skills but I have found myself reading things published by the IRS a few times to make sure I understood. The complexity can be a bit frustrating. I don't want to hire someone to do my taxes, I have always stubbornly believed that it's NOT beyond my ability to comprehend, it's only a matter of me putting my time into it. If I can't prepare my own taxes I feel that I have no business doing the analytics and data science type work that I do for a living...
This is my experience too. I spent many hours, even before mom died, researching how to fill out the final tax forms for mom's last year, and for the estate after she died. I was unable to find a template for an estate trust that was only going to last one year, just long enough to disburse the assets. I received the state & federal refunds for mom's 2020 income taxes earlier this year. The estate owned no taxes, as the profits were disbursed to my sister and me. We paid the taxes on the profits. I am just waiting on the Medicare payment refund now before I can close out the checking account.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
