|35thOVI ||05 Jan 2022 2:53 p.m. PST|
How are people planning on handling this? Since I make no profit on what I have sold, I.E. everything I sell cost me more originally, it would still require that I keep pictures of the original price of each one and then track and prove it to the IRS. How would you who sell miniatures do it?
Venmo, PayPal and Cash App to report payments of $600 USD or more to IRS this year
This was part of the America Rescue Plan that passed last year to my understanding. I am new to the site and maybe this has been discussed, if so I apologize.
|Col Durnford||05 Jan 2022 3:15 p.m. PST|
Smaller lots. Don't sell anything for more than $599.99 USD with shipping and tax.
| Stosstruppen ||05 Jan 2022 3:18 p.m. PST|
I believe its not a total of $600 USD but individual payments of $600 USD or more. Still, its BS.
|35thOVI ||05 Jan 2022 4:15 p.m. PST|
Not the way I read 2 articles. Check your translations, but it looks like when you hit a total of $600 USD or more, PayPal will need to send you a 1099-k.
| Doctor X ||05 Jan 2022 4:21 p.m. PST|
A total of $600 USD in transactions will now trigger a 1099 from the IRS.
|35thOVI ||05 Jan 2022 4:35 p.m. PST|
I found out This was part of The America Rescue Plan passed in March of 2021 along party lines.
|dBerczerk||05 Jan 2022 4:57 p.m. PST|
And with all those new IRS agents on the payroll, how long before the Tax Man will be scrutinizing all those Flea Market sales / purchases at Conventions?
|35thOVI ||05 Jan 2022 5:12 p.m. PST|
Don't forget garage sales
|35thOVI ||05 Jan 2022 5:17 p.m. PST|
I have silver age comics stored away from when I was a kid. Some are worth a bit. So you sell a comic you paid 15 cents plus tax back in 60's for $150 USD dollars. Almost all profit. I guess you hope you don't have a #1 Spider Man. One sold in auction for $300,000. USD
|chuck05 ||05 Jan 2022 5:27 p.m. PST|
Just tack on a few bucks extra to cover the taxes.
| ColCampbell ||05 Jan 2022 6:07 p.m. PST|
Don't go through PayPal, etc. Have your buyers pay in a USPS postal money order.
|35thOVI ||05 Jan 2022 6:15 p.m. PST|
How much of a hassle is that for the buyer? Unfamiliar with it. I am new to selling, have always been a buyer before. PayPal is quick and fast for both sides. I hate making a hassle for the buyer.
| Doctor X ||05 Jan 2022 6:21 p.m. PST|
There is nothing customers appreciate more than having to pony up additional money to pay for something using a postal money order, not to mention the inconvenience factor of having to procure one.
|35thOVI ||05 Jan 2022 6:30 p.m. PST|
I fail to see how this is "taxing the rich". This seems to effect those in the lower and middle class, those they claim would not be effected(i am old enough to not buy the line😉). I am retired. I doubt most of those who use PayPal are the top 10%. $600 USD, "come on man". Am I the only one who finds this to be ridiculous?
|Thresher01 ||05 Jan 2022 7:27 p.m. PST|
You also now must report your ill-gotten gains on your illegal activities, including, presumably, theft, burglary, money-laundering, illegal gambling, drug deals, etc., etc. too.
The IRS just published this as a reminder to those not obeying the law that they need to "obey the law".
I wonder if prosecutors will dumb down the non-reporting to misdemeanors, or no charges at all, like they are now proposing to do in some cities for armed robbery, burglary, car-jacking, etc., etc.?
Surely, you didn't really believe that the low and middle class would not pay any more under various tax plans of the new guy (gal?) in charge.
| Nashville ||05 Jan 2022 8:47 p.m. PST|
team;…. criminal lawyer here… criminal prosecutions are rare.. BUT IRS civil penalties will take your wallet and breath away.. cant bankrupt and they come for your bank account etc etc. So keep good records of what you buy and sell.
I agree that the fat cats figure out ways to dodge but when they get caught they pay me in gold and not lead.
|35thOVI ||06 Jan 2022 3:38 a.m. PST|
No, I had no doubts that the middle class would pay for giveaway programs to buy votes (bread and circuses). I didn't vote for him either.
Ahhh. Good thoughts. But now this is like selling stocks, (is today), or selling your house, (used to be). Records for years and tax forms. ☹️
Of course I paid taxes originally on the things I am selling as well.
I seem to remember a revolution about things like this in the past, or am I mistaken, 🙂
|35thOVI ||06 Jan 2022 3:52 a.m. PST|
Nashville useful information and I have passed it on. Thanks everybody who sells should read it.
| Stosstruppen ||06 Jan 2022 5:20 a.m. PST|
Well, that's gonna put a bit of a damper on the ol ebay store….. then again, there are costs to deduct….
|35thOVI ||06 Jan 2022 5:31 a.m. PST|
Ok. So you sell a book for $5 USD and the dust cover shows 17.50. Is a picture good enough? I mean obviously I don't have the receipts from the 70's and 80's.
| ColCampbell ||06 Jan 2022 6:07 a.m. PST|
obviously I don't have the receipts from the 70's and 80's.
Especially on miniatures that are no longer in production. That may encourage those of us who still have old printed catalogs to post and share them on the Internet.
|35thOVI ||06 Jan 2022 6:10 a.m. PST|
Yes some of mine are old Der Kreigspiellers and Heritage. No longer sold.
| enfant perdus ||06 Jan 2022 7:27 a.m. PST|
You also now must report your ill-gotten gains on your illegal activities
This has been the case for as long as I can remember. Remember Al Capone? It's not that they expect people to report illegal income, it's so the Treasury can pursue them for financial crimes when they don't.
The harsh reality is that you've always been required to report all income. Grey market sales were easy to keep off the radar in the age of cash, checks and MOs. People have adopted electronic payment en masse because of the convenience, but that convenience is also easily trackable and reportable. This was an easy way for the IRS to enforce laws that were already on the books. I'm surprised it took this long, but I think the explosion in home-based businesses and "side hustles" over the last few years spurred action, not to mention the increase in other third party payment systems (Venmo, etc.).
|DeRuyter||06 Jan 2022 7:53 a.m. PST|
@35thOVI Better to talk about the mechanics of the new regulations than the politics – glass houses and all. TFGs "tax reform" benefited only the 1%.
This story is typical clickbait headlines and fearmongering, you can see the results here as people go down the rabbit hole of slippery slope fallacies. Even your title is misleading it is not a "tax" all they did was lower the amount that payments apps have to report. The actual reporting has been around since 2011 so that is nothing new. In 2014 the reporting threshold was $20 USDk and 200 annual transactions. However, you are supposed to report all profit from sales. Does anyone selling here or at the flea market really do that unless that is their business? My point is that this is not aimed the flea market crowd, but larger businesses who may be avoiding taxes through payment apps. Yes even with the lower limits. you do agree that businesses should pay their fair share of tax right?
Anyone with concerns really should talk to their accountant. Frankly even if the IRS hires more staff the agency has been gutted and does not have the resources to come after individuals who made $500 USD selling old books and miniatures. The IRS is not going to bankrupt anyone for that, even if you roll that 01% on the dice and get audited you'll get an interest penalty and have to pay the difference if you owe more tax. For some this may make a difference in taxable income but selling stuff here really shouldn't move that number.
|35thOVI ||06 Jan 2022 8:12 a.m. PST|
No, I honestly do not understand a $600 USD dollar threshold. 20,000 and 200 items as it was, might have made sense if you were truly going after those using this as a business. This now just requires everyone to keep paper and records for years and years. It just seems like another method to get at others money. I just heard that this is driving the hiring of another 37,000 IRS agents. If we say the average salary with benefits is 100,000, that is 3,700,000,000 I believe. Where is the gain?
|Rdfraf ||06 Jan 2022 8:17 a.m. PST|
I suppose it depends on your tax bracket. I wasn't aware of the $20,000 USD limit on reporting a few years back. I went slightly over the $20,000 USD limit twice and you can imagine my shock when IRS sent me a bill for $17,000. USD That was quite a nightmare.
|mjkerner||06 Jan 2022 9:48 a.m. PST|
Tax and Spend. Sound familiar? Why is anyone surprised?
| Bobgnar ||06 Jan 2022 11:58 a.m. PST|
Why all the complaints about paying taxes. The US government needs all that he can get to cover all the huge expenses that he plans to implement. Be a good citizen and support the party that won.
|Col Durnford||07 Jan 2022 10:16 p.m. PST|
$17,000 USD bill for $20,000 USD+ sales!
While I'm sure it was a nightmare, what was the final result?