re: The $600 reporting threshold is now required by the IRS. Ticket resellers are not happy!!

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Good, pay your fricking taxes.

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33 trillion in debt...

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You have no issue with the government monitoring every transaction worth 600 bucks?

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Thank Ronald Regan

It started with him and the 10,000 reporting act. Ronnie used his "war on drugs" as the excuse to invades peoples privacy (basically accused you of being a drug dealer if you paid cash) . Been going downhill since. Patriot Act under Bush did even more damage and your financial institutions reported a lower threshold down to about 1,000. They have been pushing for this 600 crap for at least 20 years or so and it has lees to do with the money as getting into peoples lives.

Just now with more powerful computers and better software they can crunch lower and lower levels of personal invasion. Foolish to blame either party as it was your inaction over decades that has allowed it by you not doing anything for so long.

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Also, if someone sells their used car, if they have to claim income on the sale, shouldn't they also be allowed to claim full depreciation to offset that?

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You are looking at it incorrectly depreciation isn't part of the equation at least directly. If you sold the car for less than you paid you have no profit and owe no taxes. You can also deduct any cost of selling the car from your basis.

So if you bought the car for 20,000 and sold it for 20,500 and paid eBay $600 in fees to sell the car you owe no taxes.

If you bought a car for 20,000 and sold it for 25,000 with no associated fees you have $5,000 in profit and that profit is income you have to declare and pay taxes on.

If you get paid through one of the payment services that have to report at the new threshold you will receive a 1099-K from them that reports the income (you will probably have to download it). This information is shared with the IRS. In the past, you would need to file a Schedule C and possibly other schedules with your 1040. I do not know if the IRS is adding a schedule or form specifically to address all the people needing to deal with this and do not need to file a Schedule C.

I think this is silly overall because the amount of revenue it will produce is a drop in the bucket, will turn a lot of people into accidental tax cheats and will complicate a lot of people's otherwise simple taxes. Our taxes are already complex so it isn't much if any issue for us but for a lot it will significantly change their otherwise very simple taxes.

I have no issue with closing loopholes but the amount of revenue generated for the amount of trouble on both ends is juice not worth the squeeze IMO.

If my tickets cost $3000 and I sell 2 for 600 do I have to pay taxes on the sell? I’m already taxed on the $3000 correct?

Can I deduct the $3000-$600 and take the $2400 deduction lol?

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Good, pay your fricking taxes.

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If you think this could never happen in the U.S., you're really naive. Dust off the picture you took of the country on JAN20, 2021 and have another look.

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Yes, they do. They're required to. If you meant some sort of bill pay via mail through your bank, they send it too.

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LemmyLives

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Yo - Lemmy - did you do the research as to why the $600 law does not apply to Zelle (or that's their claim)? I could send you the link - but won't.

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LSU season tickets with mandatory donation.
I sell Alabama matchup for $1200 (300 each) but I attend the mcneese st game (don’t sell).

Can I claim the mandatory donation as an expense (to count against the gain from the Alabama sale), and if so, is the donation weighting for the mcneese state game count the same as the Alabama game?

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Intuit, the company that makes TurboTax software (which I use to prepare my personal tax return), says on its website that as of March, 2023 there has been no IRS guidance on including required "donations" in order to buy a sporting event ticket in the cost basis of the ticket for tax reporting purposes.

As for me, I plan on prorating the "Tradition Fund" donation LSU requires in order to buy baseball season tickets in the cost basis of the tickets I sold this past season unless the IRS issues a guideline prohibiting it before next tax season.

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5) Eveyr single transation that is "now taxable" was 100 percent taxable in the past, now, it's just being snitched on.

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The tax implications don't bother me, it's the reporting. I imagine only a very small fraction of poeple with greater than $600 revenue on ebay (and others) have taxable gains, but now everyone has to provide documentation to demonstrate that. $600 is a very low cumulative threshold and I believe it was previously $20,000. I could support something like $5,000 or $10,000, that way you aren't snagging someone selling their old electronics on ebay.

In effect, selling a used iphone 14 pro max will generate the 1099, then anything else sold on ebay within that year, even if for $14, will need to have the original price documentation to show whether there was a gain on the $14.

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Thank Ronald Regan

It started with him and the 10,000 reporting act. Ronnie used his "war on drugs" as the excuse to invades peoples privacy (basically accused you of being a drug dealer if you paid cash) .

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CTRs started in 1972, so that would be Nixon not Reagan.

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Been going downhill since. Patriot Act under Bush did even more damage and your financial institutions reported a lower threshold down to about 1,000.

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The USA PATRIOT Act did indeed expand the requirements of the Bank Secrecy Act; however, there are no specific reporting thresholds required by banks at the $1,000. There are record retention requirements at $3,000 for funds transfers (e.g., wires) and purchase and sale of monetary instruments (e.g., money orders, traveler's checks, etc.) but these are not reporting requirements. The suspicious activity reporting threshold begins at $5,000. Banks can choose to report suspicious activity that is under the $5,000 threshold, but those are voluntary in nature.

Cash Reporting still remains at greater than $10,000 (which is separate from the SAR requirements).

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Just now with more powerful computers and better software they can crunch lower and lower levels of personal invasion. Foolish to blame either party as it was your inaction over decades that has allowed it by you not doing anything for so long.

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Financial institutions have been using transaction monitoring software for at least 15 years now, done for the purposes of identifying financial crimes and terrorist financing.