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Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
41,936 posts, read 37,101,999 times
Reputation: 40635
Quote:
Originally Posted by Rocko20
Elections have consequences, and everyone who voted for Biden or blue congressional members should enjoy this new tax.
It went from $20K to $600.. Because the left claims it’s targeting…. the wealthy.
Yes, like the wealthy is wasting time on $600 transactions through PayPal, and IRS agent is needed to hunt doen every $600 transaction.
It's not a new tax at all. It's a reporting threshold change. Giant difference.
And they don't need to hunt anything down, its being reported to them.
The reality is if you're selling stuff you should have been tracking this anyway. I always did. Heck, I knew how much I was paying in packing tape, postage, shipping boxes (mostly record sales) when I did it in case I was audited. I could always offset my sales with purchases. Always worked out fine. Not hard at all, and actually very helpful as I could determine what was worth buying and selling and what wasn't.
Quote:
Originally Posted by RetireinPA
you need a new accountant or a new state to live in. You typically dont pay sales tax on the stuff you buy to resell as part of a business. if you live in a state where they double dip, its time to move.
Yeah, if you're buying as a contractor you just give your tax ID and its waived. The sales tax is collected when sold to the customer. Maybe some people don't do it right for whatever reason, but that's on them.
That 87k new agents is over the next 10 years, and many of them are to replace retiring agents. The rest just bring staff levels up to what they were a some time in the past.
There is no way the IRS is going to question tens of millions of personal item sales.
Mmm hmm if you believe that I got a bridge to sell you. Of course, they're not gonna say we need those 87k new agents to harass more Americans do more audits to handle the new $600k reporting rule. Go after more 501cs.
Senator Rick Scott let the new applicants know they will get fired if they apply
Yeah, if you're buying as a contractor you just give your tax ID and its waived. The sales tax is collected when sold to the customer. Maybe some people don't do it right for whatever reason, but that's on them.
There's usually a provision and/or deduction for purchases for resale that you paid taxes on.
Anmd this is not a new tax as many others have stated. It is not on single transactions over $600. It is for new reporting requirements for form 1099-K indeed filed by Venmo, Paypal, etc. It used to be over $20k per year, now it is over $600 per year.
It's amazing how far people will go to support their "team". Imagine getting wrecked by 15+% inflation (not CPI) and supporting the government coming after the $600 in your CashApp.
They could be shuffling us into the gulag and some would find a way to explain it away.
Most items sold on Ebay 'are used' items. Taxes have been paid on them already (when new)--- why should taxes be paid on a Used Item that has already been paid???
???
FACE IT... your Administration is Corrupt to the Bone !!!
"80% of eBay items sold are new items. This number has increased over the years as eBay moved from being an auction site to becoming a more comprehensive eCommerce marketplace. "
you sell a piece of furniture, or a piece of jewelry, or any item for $600.
you are supposed to report that income, and now Paypal etal will send you the form.
But if you paid $2,000 for that item a few years ago and are selling it for $600 today, how is that considered as reportable "income"? In my opinion, that's a LOSS.
Personal items that a person uses for a while and then sells (usually for far less than they paid for it) has never been considered as "income" unless you're in the business of buying and selling such stuff.
What defines being "in the business"? (rhetorical question) It's defined by your past practices. If a person is constantly buying and selling stuff, then they're "in the business" and that is a taxable situation. OTOH, if Joe decides to sell his 10-year old riding lawnmower which he paid $2,000 for and he sells it today for $600, then that doesn't seem to me to be "reportable". If it IS deemed reportable, then it would be reported as a LOSS since he paid a lot more for it than he sold it for.
This is my understanding. Please correct me if I'm wrong.
Most items sold on Ebay 'are used' items. Taxes have been paid on them already (when new)--- why should taxes be paid on a Used Item that has already been paid???
???
FACE IT... your Administration is Corrupt to the Bone !!!
as someone who sells used stuff on places, you use the cost basis for the item to offset the taxable amount.
if you buy a stereo for $600 and sell if for $100, it is not a $500 claimable loss, it goes to zero.
If you buy one for $100 (easy to do with a used marantz) and fix it up and sell for $600 (I have done this) then the cost basis is $100 plus my parts, which I account for differently on my schedule C.
I actually wrote the software to do my tracking and expenses and give it away with a GPL. I have tax exempt forms on file with 50 auctioneers and antique stores so I can not pay tax at the beginning. if I DO, then the tax paid is part of my cost basis.
The $600 thing has always been there to trigger issuance of 1099. They are just choosing to apply it to third party platforms like PayPal now, nevermind that people use those for many other reasons than income.
In the past, online websites such as Paypal, Ebay, Amazon, would only issue you a 1099 if you did over 200 transactions or hit a $20k limit.
Its really stupid to generate all this extra bureaucracy and headaches for people for relatively minor aggregate sums for the government. Its really a rounding error on the government's balance sheet in the grand scheme of things, yet people are going to spend thousands of labor hours every year just on compliance.
Quote:
Originally Posted by swagger
Yes and with inflation, your used items could very well sell for more than you paid for them when they were new - hello capital gains tax.
This is not cap gains tax. A 1099 issued for this falls under regular income tax and the % is taken out from the highest income tax bracket you qualify for. They will be taking money off the top. Do not confuse this form with 1099-DIV and other forms that you get from your bank or your brokerage, this is a completely different 1099.
Quote:
Originally Posted by Ponderosa
Not necessarily. Personal transactions are not required to file. As others have said, Paypal has a "Friends and Family" option and if your buyer chooses that it will not be reported to IRS. Also, Zelle does not report anything.
Do this at your own risk. If the transaction is under "friends and family", the person can just refund the money after receiving your item. You will void all your online protection from scammers for this transaction.
Quote:
Originally Posted by WRM20
It hasn't taken me more than 15 minutes to do taxes in over 20 years. Taxes are not complicated. My guess is there will be lines to report the total,, subtract the non-taxable, then the net.
That would depend on the amount of forms you receive and how you derive your income. If all you got is your W2 then sure. But have you ever gotten a 1099 from Amazon before, for example? That form alone takes me about 4 hours every year to do properly as it can get really complicated with 15 different expense line items they have on it that don't quite match what you have to report to the IRS.
Last edited by Gantz; 12-08-2022 at 01:08 PM..
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