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10 pages in and people like you just don't get it. Before the law, people could sell their personal stuff online at a LOSS and not have to worry about IRS reporting. After the law, they have to now fill out confusing tax forms, do bookkeeping and be apparently pay taxes on the FULL amount if they just don't magically pull receipts for everything out of nowhere. It's a scumbag move to dump this into the same bill that was to help people as well as put this on the American people during the worst inflation in decades.
The 1099K isn't going to specify that you are just "joe schmoe selling a couch" and not running a business. The burden is on the taxpayer to prove the difference.
YOU don't get it. You can still sell your personal stuff online and not be taxed. A 'garage sale' online is NOT a 'small business'.
Now, if you go to flea markets and buy a bunch of crap, then go home, post it online, mark up the price from what you paid, and sell it, then guess what? You're considered a 'small business'.
So I guess I don't have a problem with businesses who work selling products like the example above that they pay taxes on the income they are earning. What's the problem, unless of course, you disagree with income taxes in general.
Why should someone who works in a regular job with reportable income done legally have to pay taxes, but the person who has a home-based business earning $70,000 a year selling items or services to individuals and using an app for payment be exempt from paying taxes? The cutoff has just been lowered from $20,000 annually or 200 transactions, to $600 with no limit on transactions. The person that sold 100 masks last year on Etsy will now have to report that income.
The reality here is that some businesses will see increased sales (Amazon….) while Etsy and EBay see reductions. Just like the Covid shutdowns, bigwig box stores okay, local business not okay. The future will see increases in other selling platforms such as the list Craig keeps and marketplace on that meta platform and even soft Amazon accounts.
The intentions might be genuine is the passage of the last congressional effort but the real world will become even more cash business. Small retailers, staying legal, will feel the most impact.
Does anyone think the organized crime, with theft the billions, is going to use EBay or Etsy to sell stolen tools. Article below explains how Amazon is helping criminals resell (the most) while EBay does the most to stop illegal reselling of stolen tools. But EBay will feel the impact.
YOU don't get it. You can still sell your personal stuff online and not be taxed. A 'garage sale' online is NOT a 'small business'.
Now, if you go to flea markets and buy a bunch of crap, then go home, post it online, mark up the price from what you paid, and sell it, then guess what? You're considered a 'small business'.
Pay your damn taxes.
Define business.. in Biden's world selling second hand furniture is a second hand furniture business.
America: where selling your dusty used $600 sofa online will be taxed.
Let me guess, this was another “tax loophole” that Biden intended to “plug.”
Lol, after 12 pages ...
No, it's not going to be taxed, unless you originally bought it for less
Personal use items are normally sold for loss. They are not reported on the tax forms and any loss due to those sales is not deductible. But if you somehow make a profit on that, yes you have to report it and pay tax. That has been ALWAYS the case.
No, it's not going to be taxed, unless you originally bought it for less
Personal use items are normally sold for loss. They are not reported on the tax forms and any loss due to those sales is not deductible. But if you somehow make a profit on that, yes you have to report it and pay tax. That has been ALWAYS the case.
Lots of marketplace things, new but unused, are worth more due to rising inflation.
Lots of things will become $599. And multiple accounts will become more common.
Thread is a failed attempt to throw shade at Biden. As someone who has sold online and kept up with changes, this was in the works years before the 2020 election and has nothing to do with it.
Folks who sell their own items online are at a disadvantage if they do not have receipts for everything they purchased but are now selling. Using the couch as an example, if you purchased your couch 10 years ago, what are the chances you still have the receipt to prove you are selling it at a loss? I'm sure the Bidenlovers will all say they have every receipt they have ever received and this new law is no big deal.
Summary: You were always supposed to report INCOME over $600/year from a source. Why is everyone acting like this is something new? It's not!
The measures that Biden is willing to go to with a huge expansion (80bil/87K new IRS auditors) of the IRS and the carefree spending of the democrats is unprecedented. (and disturbing).
No, it's not going to be taxed, unless you originally bought it for less
Personal use items are normally sold for loss. They are not reported on the tax forms and any loss due to those sales is not deductible. But if you somehow make a profit on that, yes you have to report it and pay tax. That has been ALWAYS the case.
And how are you supposed to prove you sold it at a loss? No one has answered this question.
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