re: The IRS is coming for your Venmo income

quote:

---

While the sales constitute a taxable event it does not mean you owe income tax on the transaction unless there is a profit on that sale. You could sell a billion dollars a month and be paid via Venmo and Paypal and not owe a single penny of income tax if you paid more for the items than you sold them for.

---

Right, if you sell something for a loss, but you have to prove how much you paid for it. Good luck if you bought it, say, 20 years ago. And again, a lot of people sell stuff online for a profit to make ends meet. Basically, if it goes through Goods and Services, it's getting reported. As a result, many people are buying/selling online using Friends and Family, which is risky as it offers no buyer protection and encourages scammers. Here's the article from February.

quote:

---

"Users should select Goods and Services whenever they are sending money to another user to purchase an item, like a couch from a local ad listing or concert tickets, or paying for a service," PayPal said.

---

Venmo, PayPal, Cash App must report $600+ in business transactions to IRS