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Originally Posted by bluesjuke View Post
The rule also penalizes people when selling their personal possessions.
Holy tyrannical revenuers Batman!
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No, it doesn't. You might get a 1099 for selling personal possessions, but there will likely be a line to subtract those amounts from the total.
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Originally Posted by ChrisC View Post
I sold a guitar during the year for $1100. That guitar was purchased NEW by me in the past for $1800. Tell me how this is considered "income"?
If the IRS thinks I'm going to pay income tax on it, they can kiss off. All they get from me is the middle finger in that case. It is NOT income. I LOST money on it. And the money I used to buy it in the first place was ALREADY TAXED. Jesus, the feds make some STUPID rules.
Exactly right.
In the above case, I didn't have much choice--it's the only time I've used Paypal all year. And when the dems ban cash, I'll use gold. And when the dems ban gold, I'll barter. And when the dems ban barter, they can just come after me, execute me and burn my home down. I'm NOT paying income tax on non-income.
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You won't owe any taxes on that sale, since you didn't make a profit, and it was sale of a personal possession.
I buy and sell guitars from time to time for my own personal use and enjoyment.
If I paid $2400. for a guitar and sell it 8 years later for $3000. as the market value has increased over time I will owe taxes on the difference.
Now I used to sell one to buy another so the sale price is actually of no financial gain to myself whatsoever.
Point is the government is taxing me on the sale of personal property.
Taxes paid multiple times makes government very happy.
Reference paying taxes on the SS tax tajen out of your paycheck every week.
So it is clear there is a gross ignorance as to how the policy applies to most people.
Is that the fault of the IRS or consumers who refuse to educate themselves.
Did you bother reading through the thread? That's not what most people are complaining about. People are upset because many are going to have to pay more than what they really have to on their taxes. People selling 2nd hand stuff online very often have no receipt to prove what they paid. Do you save receipts for several decades? I don't. You don't even need to keep a record of your taxes after 7 years, so it's not like a small time seller who made $600 last year is going to be able to supply proof of what they paid in many cases. Those people are going to be taxed on the gross sale price of the item.
So the way this is probably going to work with online shopping... You, the customer, are going to pay significantly more... And you've already seen the price increases. They are only getting warmed up... Once the IRS digs into these sellers, tons of them are going to quit. The ones that are left after going to be charging an arm and a leg to make it worth the hassle and risks involved.
Location: Just transplanted to FL from the N GA mountains
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Holy Crap....... We are going to be downsizing and getting rid of a whole household full of furniture and 40+ years of stuff.. no receipts. Maybe we'll just sell house with furniture included....save us the tax...save them the sales tax.......
Whether or not you have receipts is irrelevant. The IRS is not going to audit you and demand you show receipts for items you bought 20 years ago.
The IRS audits less than 0.5% of taxpayers who aren't receiving the EITC or have income over a million dollars. This new reporting requirement isn't going to change that.
They are hiring 87,000 new IRS agents. Audits will be stepped up across the board.
if you are getting the cash from the bank, doesnt the bank have to report withdrawals over x amt? So the buyer is also being tracked by the IRS.
Yes, they dont say the amount, but I think it is ~$9,500.
Problem is, most web sales are smaller dollar transaction, and the sellers draw out smaller amounts than $9,500, so fly below the IRS radar. That is why the feds want to lower the transaction amounts to $600.
The Feds are out to tax the gig economy, some of which are currently evading taxes...both payroll & income.
How is Zelle different from the other apps mentioned?
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