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Then you shouldn’t have anything to worry about if you do your self reporting.
The website have clearly stated that transactions between friends and family aren’t effected. It’s just those for goods and services.
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?
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?
Mkay.
I can already see what all this leads to; higher and higher prices on e-bay ( which are already becoming prohibitive because of the shipping costs,) less offers of the merchandise because of all the hustle for the sellers.
Then you shouldn’t have anything to worry about if you do your self reporting.
The website have clearly stated that transactions between friends and family aren’t effected. It’s just those for goods and services.
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".
If you receive more than $600 in a calendar year from PayPal, Venmo, eBay or any other platform it will be reported to the IRS and you will be issued a 1099 that will need to be filed.
If you bought a camera in 2018 for $2000 and decide to sell it for $1000 on eBay after Jan 1... guess what, that will need to be filed on the 1099.
If you raise more than $600 for an ill coworker and use Venmo then than will need to be filed on a 1099.
If you loan someone $600 through PayPal and they pay you back through PayPal then you both will be issued 1099s.
The payment platforms are not distinguishing between business income and personal transactions, they will report indiscriminately to the IRS.
That's the beauty of just giving a pole of documents to an accountant and let him figure it out.
Go steal from someone else's pocket. If I buy from thrift store YEP paid taxes on it. If I get it from yard sale nope. Oh and since I flip on Ebay and FB yes taxes are taken from it, along with their fees and also fees for the packing label. Sold something for 150 on FB I only get 141$ of that.
You paid sales tax on the item you bought from the thrift store, not income tax. There's a difference. Sales taxes are part of your cost of goods sold. If you buy an item for $10 plus 8.25% tax, you paid $10.83. If you sell that item for $20, you have a taxable profit of $9.17
That $141 on FB? That's your revenue, which you offset with whatever the item cost you. eBay and Facebook are not withholding income taxes.
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.
That's the bank covering themselves in case you are "structuring", which is making deposits that total over $10,000 without exceeding that limit on any given transaction.
It's not an increase; it's a new tax. One you have to jump through hoops to prove it's not "profit".
Guilty until proven innocent is the approach they are taking.
Is this what "taxing the rich" is all about ? No new taxes for middle class..really ?
See how they lie to get votes ?
It's not a new tax. It's a new reporting requirement to force people selling thousands of dollars in flipped items per year to pay the taxes they've always owed, but never bothered to pay.
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?
You should have been sending him a 1099 in the past. Paypal may send him a 1099, but you should be doing that now.
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