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You won't owe any taxes on that sale, since you didn't make a profit, and t was sale of a personal possession
And what you will get is more red tape to fill out. What do you want to bet they will make it such a pain in the ass to get out of it that you'll just want to leave it reported as income?
In other words, the beatings will continue until moral/prosperity declines...
Quote:
Originally Posted by ChrisC
And what you will get is more red tape to fill out. What do you want to bet they will make it such a pain in the ass to get out of it that you'll just want to leave it reported as income?
Yup. A lot of people are going to end up paying far more than they rightfully owe, because proving it will be such a monumental pain in the ass that most people won't bother. The price of goods online will increase as well, even as demand is collapsing, because there simply is not enough money in it to bother for many sellers.
This will also further contribute to shortages in the USA as well as buying everything from China. Americans will be far less inclined to bother trying to sell goods online, especially with the obscene cost of shipping these days. Consumers will just buy everything made in China from big box stores. Buying stuff from China online is far cheaper too though, since tax payers are subsidizing the shipping costs from China. They can send a package here to the USA cheaper than we can send to each other here in the USA. Our politicians demanded this, and now we are saddled with the burden of an economy designed to fail.
And what happens if you don't have receipts from twenty years ago? Or bought it used from an individual who didn't give you a receipt?
Nothing. You state you sold it at a loss and don't pay taxes. It's just a reporting difference. Prior you were not required to report it. Now you are required to report it even though made no income. You still made no income and don't pay any taxes.
Now, let's say if in fact instead of the hobby bicycle you bought for $12,000 since you're a middle-aged dentist that does such things as buy $12,000 racing bicycles to smash the other middle-aged dentists on the weekend club B club rides it's actually your business. You sell 500 or 1,000 or 5,000 bicycles a year for $2,500 that you "bought years ago for $12,000." Sure, you did. IRS man isn't stupid. That's called tax evasion, not I didn't keep my receipt for the $12,000 racing bicycle I bought 12 years ago.
Sorry, but in my experience that NEVER cuts it with the government. You may as well state that you've sprouted wings and started flying.
Then pay taxes on your gross, it's no sweat at all off my brows. The government certainly could use the money if you want to give 'em it where you're not required.
Then pay taxes on your gross, it's no sweat at all off my brows. The government certainly could use the money if you want to give 'em it where you're not required.
No, the federal government does not "need" the money. It needs to get its greedy reach out of our pockets.
No, the federal government does not "need" the money. It needs to get it's greedy reach out of our pockets.
It definitely needs the money. Seen the deficit figures? You can always donate if so inclined. Me, I'm not inclined. I'd rather donate to a local animal shelter or something. The government gets the absolute minimum I'm required to give them and not a penny more from me. But I highly encourage other people to donate. They do need the money
You would not owe taxes on this transaction because you did not make a profit.
How would the Govt know that.
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