re: Explain this $600 tax thing to me like I am 12 please...

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People like you always assume the law is about someone else. You're the problem. It's always about anyone that has money and that means you, every moonlighting maid or baby sitter, they want your money, and more of it.

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Damn. OP already paid taxes when he bought the watch. We all know where the problem is.

The gubment makes no allowances for inflation.

Depending on how long ago you bought the watch, the dollar was worth more then than now, say $1200 today's dollars. You sold the watch for $800 and lost four hundred todays dollars.

Well, you're going to have to pay tax on your two hundred dollar profit that wasn't really a profit.

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If you paid $600 you have $600 basis in the watch. If you sold for $600, you have a gain of zero. Nothing with the taxation changed, just the reporting threshold.

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Can he take capital loss to offset gains assuming a loss

Normally I wouldn't but now that you made me report it we are going to do it right

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Can he take capital loss to offset gains assuming a loss

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Yeah I think a loss on the watch would be capital in nature.

Did you sell for more than you purchased?

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Just another democratic ploy to destroy the middle class and divide things between the haves and have nots

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Okay, the law hasn’t changed, this was always taxable. If I make $100k as a w2 employee I should play by the same rules as the guy who makes $100k flipping watches on eBay right?

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I heard about the $600 thing but assumed it was for people running businesses online. Not for a simple buy / sell one time transaction.

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You did the same thing a business did xso it's taxed. Same as casino winnings

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they said frick whitey or suck gay dick or wash black feet or something. Idk

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This just made me laugh way too hard. You’re underrated on here.

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With audit risk effectively at zero, unless you have a ton of these reportable transactions, if you want to evade tax like everyone has in the past, you can still easily do it.

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Surely the Inflation Reduction Act by increasing spending including almost $80 billion to IRS and this new reporting requirement are going to increase that audit risk a little.

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IRS Budget Increase
Enforcement +$45.6 billion
Operations Support +$25.3 billion
Business System
Modernization +$4.8 billion
Taxpayer Services +$3.2 billion
Other +$0.7 billion

Total +$79.6 billion

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I get people have not been reporting some income received through PayPal and similar on taxes, but going from a threshold of 200 transactions worth an aggregate above $22,000 and to every transaction above $600 seems extreme especially if they can’t guarantee personal transfers won’t trigger 1099-Ks or eventual audits.

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While the agency says personal transfers won’t trigger 1099-Ks, experts say some filers may receive the form by mistake, reporting personal payments as income, which may be difficult to correct.

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They pushed back reporting requirement in December and now required for 2023 taxes. I am not sure that’s enough unless other changes are done by IRS to ensure personal transfers aren’t being flagged and really not reported to IRS in first place.

Receive $601 in cash or check from roommate to pay share of apartment or other bills at end of month the IRS doesn’t receive a report, but the more likely way this is done today possibly gets reported to IRS. That’s BS. Privacy concerns and personal time and $ costs for compliance on top of an increased chance of being audited by IRS regardless of how small that increase is.

Where does it say you have to file for taxes? To my knowledge of the the 16th ammendment, income tax was taken from your check. It was automatic. Why should I have to file if I filled out a W4?