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The new rule is only for goods and services transactions, not personal, such as paying a roommate for rent or reimbursing a friend. It also excludes anyone selling a personal item at a loss, such as a couch bought for $700 and sold for $650.
eBay will send me a 1099, and I will need to file this. Sure, it won't have any tax implications but I will need to make sure to file this properly and keep any paperwork.
There's no real burden, and no real need to track down receipts if you are an occasional seller of personal items.
There's no real hit for eBay and others. They already have the software, it's a matter of changing the threshold from $20,000 to $600. The 1099's will likely be emailed or available online.
sure there is- especially for the occasional seller of personal items. you really keep a bunch of receipts from 10 or 20 years ago in case you sell those items one day?
There is nothing confusing here. Receipts are absolutely good evidence, but as long as you can come up with a rational purchase price for something, the IRS will accept it. For instance, my Dad was audited for a year when he had stock sales. The brokerage statements with the purchase prices had disappeared, and it wasn't like today where the sales statements have the purchase prices. He had hoarded the weekly issues of Barrons going back 10 years, and used those to estimate the purchase price. IRS was happy with that.
eBay's statement includes "small business sellers" as being negatively impacted. Those folks have been subject to tax forever, and just never paid. If they are in the business of selling, they need to pay their taxes. eBay said nothing about the impact on eBay, because there is close to zero impact.
Overall, this is just a big nothing burger.
your argument for this being no big deal is your dad went through an audit and satisfied the IRS. that's exactly why this is a big deal- it will lead to almost no extra tax revenue but will lead to people being harassed and having to waste their time with IRS audits to prove some old crap they sold was sold at a loss.
sure there is- especially for the occasional seller of personal items. you really keep a bunch of receipts from 10 or 20 years ago in case you sell those items one day?
I really don't think that will be the case. If your listings show you sold a used couch, do you actually think the IRS will accuse you of making a profit on it? They aren't going after people selling used items on Facebook yard sale or anything like that. They're looking for people selling things as a business, and not declaring taxes on their profits. I feel like you're trying to present a worse case scenario.
Explain the hassle. I don't get it. You document it the same as documenting things like charitable contributions. Surely you keep a file of records for tax purposes right? The only time I can see it ever raising a flag is if you sold a whole household of goods to make a cross country move and you have a larger than usual amount of transactions being reported. It's still easy enough to take pictures and write down the amounts - no IRS agent is going to think you sold furniture and appliances for more than you paid for them. Oh BTW, in that scenario, you can deduct your moving expenses if you're relocating for a job. You have to keep track of all those records too.
you keep every receipt for everything you ever buy until you throw it out or sell it?
your argument for this being no big deal is your dad went through an audit and satisfied the IRS. that's exactly why this is a big deal- it will lead to almost no extra tax revenue but will lead to people being harassed and having to waste their time with IRS audits to prove some old crap they sold was sold at a loss.
This will lead to a lot more tax revenue. All those DoorDash, Uber, Lyft drivers, and people making thousands per year selling items as a business. Those folks have been getting off scot free for years. Now, the drivers will ahve to pay income and employment taxes, and the sellers will have to pay income taxes.
you keep every receipt for everything you ever buy until you throw it out or sell it?
Why do you think you need a receipt? If you are in the business of selling things on eBay or wherever, you should be keeping detailed records. If you’re selling personal goods at a loss, a simple note with the estimates, along with maybe pictures will more than suffice for the IRS in the unlikely event you are audited.
This will lead to a lot more tax revenue. All those DoorDash, Uber, Lyft drivers, and people making thousands per year selling items as a business. Those folks have been getting off scot free for years. Now, the drivers will ahve to pay income and employment taxes, and the sellers will have to pay income taxes.
Ukraine will be happy
Honestly, does anyone still believe there is a correlation between govt spending and tax revenue?
I really don't think that will be the case. If your listings show you sold a used couch, do you actually think the IRS will accuse you of making a profit on it? They aren't going after people selling used items on Facebook yard sale or anything like that. They're looking for people selling things as a business, and not declaring taxes on their profits. I feel like you're trying to present a worse case scenario.
We can believe the DNC controlled IRS's intentions as much as we believed Lois Lerner
This thread is long and I do apologize for not reading each post.
Now having said that I always thought anything people sell on the internet was not taxed until recently. I never heard of a 1099 for people who sell items on the internet except for the big companies like Amazon, Walmart and so on.
But individuals selling a few knickknacks I just though they were safe and didn't have a limit as to how much they can get paid throughout the year.
So this is new to me. I think this will PO many people who sell a lot of stuff. Some people make it like a business. They get a lot more that $600 yearly. I see why they are going to look deeper into this with the average person not just the Companies and rich people. Truthfully they need to look more into every single elected official, celebrities, sports players. They are all filthy rich and they have lawyers who know what the IRS will allow in loopholes.
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