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Started By
Message
re: IRS warns taxpayers about new $600 threshold for third-party payment reporting
Posted on 11/26/22 at 1:32 pm to Will Cover
Posted on 11/26/22 at 1:32 pm to Will Cover
quote:
An individual selling at item who already paid taxes on this item is not a business and should have to pay tax again to the IRS.
In the vast majority of cases you would NOT have to pay taxes because you didn't make a profit and it would not increase your AGI. If you can not or chose not to show a loss (or net zero) then you will have to pay taxes.
One note if you are willing to take the time to find the documentation of what you paid (searching back through CC payments for example) you will likely be able to show a loss. Be aware that you do not include the documentation with your 1040, it will just be a line item on a schedule. The IRS can and may ask you for the documentation at some point.
The point is this law does not change the fundamentals of AGI if you did not make a profit then there is no tax. The issue with lowering the reporting amount is tons of people that sold something at a loss get a 1099K which they have to account for. Many of them can't or won't document the loss and will just pay it.
2
Posted on 11/26/22 at 1:33 pm to Oates Mustache
You have to tax people reselling items on eBay so Biden can send billions to Ukraine so they protect their border. It’s science.
Posted on 11/26/22 at 1:35 pm to jclem11
quote:
If this is personal, this falls under the hobby rules and is not taxable and loss in non-deductible.
But it's not personal if you're looking for PayPal protections as a buyer. That throws you into having to pay taxes right?
Most people buying something through PayPal don't want to use "friends and family" because PayPal doesn't offer buyer protections.
Posted on 11/26/22 at 1:37 pm to Oates Mustache
You get the 1099K but then have to go through hoops to ensure you're not taxed on it
Posted on 11/26/22 at 1:38 pm to Oates Mustache
IRS just hassling the public. That's what they do best.
Older bro is a CPA, works as a CFO for a corporation and has his own business. I don't see how he's done this shite for so many years.
We need tax reform in the worst way.
Older bro is a CPA, works as a CFO for a corporation and has his own business. I don't see how he's done this shite for so many years.
We need tax reform in the worst way.
Posted on 11/26/22 at 1:41 pm to SlowFlowPro
quote:
You get the 1099K but then have to go through hoops to ensure you're not taxed on it
Exactly. That's messed up. More shite to deal with to basically prove my "innocence". I'm "guilty" of owing taxes until I prove otherwise.
This post was edited on 11/26/22 at 1:42 pm
Posted on 11/26/22 at 2:00 pm to Oates Mustache
quote:
However, Congress slashed the limit as part of the American Rescue Plan Act of 2021, and a single transaction over $600 may now trigger the form.
Nothing helps people struggling with inflation like taxing them more.
quote:
Aimed at closing the tax gap — a top priority of the Biden administration —
Or, to phrase correctly, raising taxes.
Posted on 11/26/22 at 2:05 pm to RogerTheShrubber
quote:
CPA,
Newsflash: not all CPAs do tax work. Accounting is a huge field with many specialities and disciplines.
In fact, there are many CPAs that don’t do their own tax returns.
The more you know.
Posted on 11/26/22 at 2:08 pm to Antonio Moss
The tax code at the core is about power and controlling behavior. There incentives to do things via credits and deductions.
Once you realize that fact, the rest falls our from there. And always follow the money.
There will never be a “flat tax” or “fair tax” or “simplified tax code”.
Politicians will never relinquish the power.
Once you realize that fact, the rest falls our from there. And always follow the money.
There will never be a “flat tax” or “fair tax” or “simplified tax code”.
Politicians will never relinquish the power.
Posted on 11/26/22 at 2:18 pm to Oates Mustache
quote:
But this is only for items you make a profit, right? If I buy a new road bike for $3,000 and sell it to Jeaux Boudreaux for $1,800, why the frick should I have to pay taxes on an item I already paid taxes on?
Yes, I believe this is true but you need to have the original receipt proving what you originally paid. A lot of people selling used stuff on eBay and elsewhere no longer have the original receipt so they are stuck in an awkward position: pay the tax on it or don’t pay the tax on it and hope they don’t get audited.
This post was edited on 11/26/22 at 2:20 pm
Posted on 11/26/22 at 2:23 pm to jatilen
I guess some people keep meticulous records of purchases but I certainly don't. If I sell a shotgun that I've owned for 15 years I'd have no idea how I paid for that at the time and probably couldn't produce it if I wanted to.
Posted on 11/26/22 at 2:25 pm to jclem11
quote:
Newsflash: not all CPAs do tax work.
Newsflash, he does
Posted on 11/26/22 at 2:25 pm to Oates Mustache
quote:
You get the 1099K but then have to go through hoops to ensure you're not taxed on it
Exactly. That's messed up.
Yep.
Posted on 11/26/22 at 2:44 pm to RogerTheShrubber
Not everything is about you, Rog.
Posted on 11/26/22 at 3:12 pm to Oates Mustache
quote:
I love how if you get the form by mistake, you have to contact the seller to fix it
I'm not doing that, and there won't be any refund for them to hold hostage.
Posted on 11/26/22 at 3:13 pm to Oates Mustache
So glad they hired 87,000
New agents
Remember they were only gonna be going after the rich !!!!!
New agents
Remember they were only gonna be going after the rich !!!!!
Posted on 11/26/22 at 3:13 pm to Oates Mustache
Just make them audit you. Then you fix it.
They spend more time than you
They spend more time than you
Posted on 11/26/22 at 3:19 pm to SlowFlowPro
quote:
Probably, but if you have documentation then you should be OK.
Wouldn’t documentation be a bank statement? I send an invoice every month with what they owe. Zelle is pretty much a bank to bank transaction IIRC
Posted on 11/26/22 at 3:20 pm to Obtuse1
quote:
The issue with lowering the reporting amount is tons of people that sold something at a loss get a 1099K which they have to account for. Many of them can't or won't document the loss and will just pay it.
I bought a coleman lantern 15 years ago and resold it for less than what I paid. I sure as hell don't have any proof of what I paid 15 years past. I also sold some high-end pen refills that someone gave me after clearing out an estate. No paperwork there either.
I suppose this just means from here on out I should be saving the receipts of anything I might possibly re-sell in 10 years. Just what I love, more paper-work.
Posted on 11/26/22 at 3:34 pm to Oates Mustache
frick THE GOVERNMENT
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