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Welp, elections have consequences and this is what the left wanted so now we all have to suffer.
Welp - nope --- not a new tax levy at all..... Treasury proposal would change reporting requirements to account for transactions made on smartphone apps
They aren't really looking at anyone at all, because it's a waste of time and resources.
They passed a surveillance law that they hope will scare some percentage of the population into self-surveilling, thus volunteering to pay more taxes.
Nothing more, nothing less. Just another implied legal threat meant to scare the children into desired behavior.
This is mainly to close an existing loop hole for business transactions.
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The tax-reporting change only applies to charges for commercial goods or services, not personal charges to friends and family, like splitting a dinner bill.
In an explanatory document on the new tax changes, the IRS said these changes also apply to people who sell items on internet auction sites like eBay and people who "have a holiday craft business" so long as they accept credit card payments through these apps.
If you wouldn't report the sale of your couch before, you wouldn't now. It's the same law as before. If you sell something for less than you paid.... like a couch..... it doesn't count. If you are that concerned, ask for cash. I've always requested cash when selling items.
It's different now. It's not you reporting; it's the third party settlement sites like Paypal and Venmo sending out these 1099-K forms to both you and the IRS at this new threshold of $600. The previous threshold was $20K.
https://www.augustachronicle.com/sto...rs/6372523001/
According to PayPal, while banks and payment service providers, like PayPal and Venmo are required by the IRS to send customers a Form-1099K if they meet the $600 threshold amount, there are certain amounts that may be included on the form that are generally excluded from gross income and therefore are not subject to income tax. This includes:
Amounts from selling personal items at a loss
Amounts sent as reimbursement
Amounts sent as a gift
So, for example, if you purchased a couch for $1,200 and sold it for $800, this amount would not be subject to income tax. Sellers are encouraged to speak with a tax professional when reviewing their 1099-Ks to determine whether specific amounts are classified as taxable income.
"Capital assets held for personal use that are sold at a loss generally do not need to be reported on your taxes. The loss is generally not deductible, as well."
Right. Items sold at a loss never were required to even be reported prior to this. They will now. You will get a 1099-K regardless if over $600. Selling one used iPhone could put you over the limit.
This is the big change. Some are not "getting it". I keep reading, "this has always been the law, you were always required to report, etc." Only for income, NOT for items sold at a loss. There was never a reporting requirement until now. This will be a huge hassle for many.
Welcome to self employment. For around 25 years of being self employed full time I was darn glad to get 1099's from three of my contacts. That meant they were giving me lots of work. The tax preparer that I used all those years showed me that the self employment tax which at that time was 12% for me, was going to come out of what I was due in my return.
The thing about money from internet sales is there is not a lot of cost to claim. I guess you could claim your; internet, mailing , packaging cost and amortize your cell phone and computer.
It's different now. It's not you reporting; it's the third party settlement sites like Paypal and Venmo sending out these 1099-K forms to both you and the IRS at this new threshold of $600. The previous threshold was $20K.
https://www.augustachronicle.com/sto...rs/6372523001/
According to PayPal, while banks and payment service providers, like PayPal and Venmo are required by the IRS to send customers a Form-1099K if they meet the $600 threshold amount, there are certain amounts that may be included on the form that are generally excluded from gross income and therefore are not subject to income tax. This includes:
Amounts from selling personal items at a loss
Amounts sent as reimbursement
Amounts sent as a gift
So, for example, if you purchased a couch for $1,200 and sold it for $800, this amount would not be subject to income tax. Sellers are encouraged to speak with a tax professional when reviewing their 1099-Ks to determine whether specific amounts are classified as taxable income.
Anytime I rec'd payment (business, which is what this is for) for over $600, tax forms were filled out. This will end up no different I didn't "self report" the payer is required to do it.
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