Reminder: Jan 1 PayPal, Venmo, eBay payments will be reported as income (Obama, revolution)
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For God sakes, I'm tired of arguing with you. You are being purposely obtuse. It has NOTHING to DO with friends and family. I buy something either new or used. I later sell it as a used item. One hundred percent of the time it is at a "loss" because it is not a business transaction with intent to make a profit. It's me selling something I don't want lying around collecting dust. That is absolutely NONE of the IRS's business at all. There is zero reason that they should have any record of that whatsoever.
Like I said, I'm tired of arguing with you about it. And they won't have record of it from January 1st onward because any such transaction will be cash.
And don't come back with this "all you have to do is fill that in on your tax form at the end of the year." Bull. They get a 1040 EZ. I'm not going to waste hours of my life explaining something to a rogue organization that has no business knowing about any such transaction in the first place. They want to know, let THEM waste their time on a nothing burger. (or I should say waste my time--I pay taxes for the jackasses to hound me)
I'm pretty sure they lowered that limit. I tried to do $9,500 not long ago, & they said I had to fill out a form.
I did $5,500 last week w/o issue.
If anyone here knows the current limit, plz share as the banks will not divulge.
It’s 10,000. But it’s also discretionary to the bank for lower amounts. They’re also to look for patterns of cash deposits that can raise a flag.
Quote:
Originally Posted by ChrisC
For God sakes, I'm tired of arguing with you. You are being purposely obtuse. It has NOTHING to DO with friends and family. I buy something either new or used. I later sell it as a used item. One hundred percent of the time it is at a "loss" because it is not a business transaction with intent to make a profit. It's me selling something I don't want lying around collecting dust. That is absolutely NONE of the IRS's business at all. There is zero reason that they should have any record of that whatsoever.
Like I said, I'm tired of arguing with you about it. And they won't have record of it from January 1st onward because any such transaction will be cash.
And don't come back with this "all you have to do is fill that in on your tax form at the end of the year." Bull. They get a 1040 EZ. I'm not going to waste hours of my life explaining something to a rogue organization that has no business knowing about any such transaction in the first place. They want to know, let THEM waste their time on a nothing burger. (or I should say waste my time--I pay taxes for the jackasses to hound me)
Okay mr complains-a lot.
Quote:
Originally Posted by Williepaws
yes but does the private citizen get caught in this? if I and many others pay someone, an independent contractor, $200 every 6 weeks thru paypal, am I going to have to send a 1099 to him?
As a homeowner?
No. PayPal will if you’re paying him under the goods and services side (he’ll have to pay a small fee for the transaction).
He won’t get a 1099 if you’re paying as “friends and family” which IMO is what most do anyways. But he is still supposed to self report.
Quote:
Originally Posted by TMSRetired
self reporting of what ? I'm not a business.
If I sell my couch at less than I paid that is not gifting to friends and family.
And it is the person who is sending the money that gets to pick business/friends for the transaction.
In the past that money would have just been taken out and deposited somewhere else.
Now though you'll get a 1099-K with that couch money and have to prove it's not "profit".
And thinking more about it people can use that to their advantage.
I would have never thought to write off the loss/depreciation from selling that couch.
But now people can do that since the government thinks the sale of your used couch is a "business profit".
I can see how this will come back and bite them.
It's either that or everyone will become "friends and family".
It’s a used couch. Just keep a copy of the listing.
And most transactions on Venmo and such are friends and family IMO, even business. I just paid the plow guy with Venmo under friends and family. I don’t use any of these apps much so I’m in and out.
The current Tax Law has a $20,000 threshold. The new Tax law has a $600 threshold. But yea...they are just "modifying" the existing law.
Since these companies have no idea if you lost money or not they will report it regardless. So as long as you have proof you bought that dress for $100 back in 2015 you are in great shape. As all you now need to do is attach more forms to your tax return to show your loss and keep everything for 7 years hoping the IRS doesn't want to audit you over $50 with the thousands of new agents they are hiring...
REad what I posted again.......yes the threshold for reporting has changed but the tax obligation hasn't.
Not sure about that. My understanding is that you will have to REPORT it now. Then go through the paperwork of declaring a loss. That is a lot of extra hassle. You won't be able to use an EZ type tax form or be eligible for free tax filing either. If I am reading this wrong, maybe someone can point out where.
Ahh your understanding - key phrase here.
Talk to your accountant -- they will verify for you.
Basically what you are saying is that your feelings aren't the same as what is being reported by the tax experts in the links I cited.
When you actually factor in the deductions, you would need to have a total income of 7,000 dollars before you even qualify for step one of possibly being taxed, and even then, 4000+ in net profit is needed to become taxable.
If your Hobby gets you 4,000 in net income, its not a hobby.
Much ado about nothing (but do continue to lose your minds over it ...par for the course here).
1099-K Threshold Change:
This new Threshold Change is currently only for payments received for goods and services transactions, so this doesn’t include things like paying your family or friends back using PayPal or Venmo for dinner, gifts, shared trips, etc.
I'm curious how many of you (for those that itemize) keep copious notes on that blank receipt you get from goodwill for charitable contributions. Or do you just throw out a ballpark figure based on an average on what people claim in your income level? Nevermind that the only contribution was a chair, lol
But do keep thinking the IRS has the manpower to go after these types of transactions.
Status:
"Smartened up and walked away!"
(set 3 days ago)
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Reputation: 14090
Quote:
Originally Posted by LordSquidworth
It’s 10,000. But it’s also discretionary to the bank for lower amounts. They’re also to look for patterns of cash deposits that can raise a flag.
Okay mr complains-a lot.
As a homeowner?
No. PayPal will if you’re paying him under the goods and services side (he’ll have to pay a small fee for the transaction).
He won’t get a 1099 if you’re paying as “friends and family” which IMO is what most do anyways. But he is still supposed to self report.
It’s a used couch. Just keep a copy of the listing.
And most transactions on Venmo and such are friends and family IMO, even business. I just paid the plow guy with Venmo under friends and family. I don’t use any of these apps much so I’m in and out.
So you are violating the law by paying for services under the table right thereby letting him avoid taxes?
So you are violating the law by paying for services under the table right thereby letting him avoid taxes?
And? Do you honestly think people don't fudge all types of things when filling out their income taxes? Get real dude.
Again, it's highly unlikely the IRS will be wasting their time on the "plow guy". They don't have the desire or the manpower for such a small fish.
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