eBay. They're managing payments themselves now. There are a few options available but they all flow through eBay.
IRS warns taxpayers about new $600 threshold for third-party payment reporting Here's something for ya......
It's a little confusing but if you read the end of the article, it includes mistakes made by the issuer concerning "personal transactions" which should be corrected. That's what the transactions are here on the forum.... "personal transactions"....... correct? It's more than a grey area for selling and I have to believe there is a loophole with that "personal transaction" inclusion.
That's not what it is saying. The quote was... "Before 2022, the federal Form 1099-K reporting threshold was for taxpayers with more than 200 transactions worth an aggregate above $20,000. 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." It's just referencing that you don't need 200 transactions to qualify anymore.
Exactly. There is nothing about this law being repealed. I think the warning sent by the IRS makes that pretty clear.
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. I wonder which Americans who now have to deal with this will consider themselves to have been rescued.
I don't sell anything here, but PayPals and Venbros might want to look at this. I just encountered this video, and maybe you were aware of any upcoming changes that have to do with declaring third-party-payments or tax hurdles. Maybe you're not. This seems to be a new wrinkle in IRS being extra vigilant next year, to the point of possibly issuing notices that you might not think apply to you, never saw one before, and might ignore it at your own discomfort. This guy says even if you feel the notice doesn't apply to you, it's still in your best interests to respond to it rather than face unwanted consequences ignoring it...I know, who needs the headache of extra attention or an audit, especially not one that wasn't your fault in the first place. Just give a look, and be aware. The $600 limit was already there, but this could be different. Try not to point fingers at anybody at 1600 Pennsylvania about this, it's more about the IRS doing their usual myopic "due diligence" of going after the lower-hanging fruit rather than concentrating on more privileged white-collar offenders. Re-focusing their energies is above all our pay grades, aside from the usual electoral remedies, a discussion I'm afraid we can't have here . Just a heads-up, I suppose.
This has been discussed extensively over in this thread since it was announced: PayPal 1099-K changes Unfortunately for this guy's Youtube video, it's not very helpful right now. People needed to be aware of it a year ago so they could improve their recordkeeping and/or start hiding their income.
So you're sure he's not saying anything new about receiving a form you might not think you need to respond to? This seems a new wrinkle on the discussion: new regs is one thing, the possibility they misread your commerce and try to ding you for it if you don't prove to them they're wrong, appears much more serious. Like I said, I don't do online commerce here...I'd just hate for others to miss the opportunity to save themselves the headache.
Read through 10+ pages, but still can't find the 'consensus' for my very common situation. Sold a laptop (not through ebay) for $800. Of course I paid more! Paypal will send me the 1099-K. Now what? I sure as hell ain't paying income tax on that $800.
You have to report the 1099-k income on your taxes if you sold the laptop using a service like PayPal. If you don't want to be a sucker and pay tax on that amount (which they're hoping many people do), you will need to file a Schedule C, and report a cost basis for that sale, which results in zero net income.
Not so difficult for one item. I'm on the hook for hundreds of transitions, but I do have receipts saved, and a decent accountant to walk me through every write off that I am entitled to. I printed out each invoice sheet, and have been writing the fees associated with each on the corners of them. Just next I need to create the spread sheet. I'll own some tax but it's ok, I didn't make $100,000 on used records and CDs.
I started a spreadsheet at the beginning of the year just for this purpose. TBH this is a hobby and I never kept track of anything before 2022. In a way it has been eye opening.
I did the same thing and agree it has been an eye opener for sure! I sold my old turntable for $3600 so it was good to have listed the records I had sold instead of trying to backtrack and come up with all of the records I had sold. Hopefully I won't have any equipment sales in 2023 but I'll use a spreadsheet again to simplify things. I wonder how much fun the Schedule C will be...
One of the nice things about pre-Covid record stores is a lot of the receipts they have were standard issue register tape so even if you're missing receipts it's not difficult to replace them if you have a good memory and know very basic image editing skills. I have six templates setup in GIMP for all of the records I've sold this year from the record stores in Minneapolis I bought them from between 2014 and 2020 so if I'm missing one I just it up in my Discogs purchase database and check the payment, date, and location notes when I logged it to complete the missing receipt. If I get audited I plan on making the auditors life absolute hell because this whole situation is absolute foolishness. I've sold off about $15K of my record collection this year, ironically, to pay off past IRS debt from a 1099er fiasco with a former employer and I've been obsessive about matching up receipts from when I bought the record to the invoice and all of the fees and costs involved. It took some time to setup but I have it down to the cost of the tape I use with each mailing so absolutely every cost associated with selling is accounted for so I can write it off. One thing I need to do before 31 December is finalize all of the time I spent cleaning, cataloging, researching, packing, and taking these records over to the USPS and bill myself for it. If the IRS really wants to have fun over this whole "$600 in sales" nonsense I'm game to waste their time as much as they've wasted mine. If I had any sense I would set up an LLC for this nonsense because I still have 5,000 records/CDs left to sell off and inherited another 1,000 from a cousin that passed away recently to sell as part of his estate settlement.
Gas/mileage to the PO and back, don't forget. I'm not sure if you can deduct time spect cleaning, but ok. I found a bad of receipts from about 20 years ago. Hundreds of dollars spent at a record store now closed. But I will match those receipts up to each record I sold as well. I'm looking at 50% cost on each record sold. So if I have $20,000 in sales, I will come up with $10,000 in item costs. I don't think I have that much in sales, likely 1/2 that, but we'll see. My binder book is jam-packed with invoices all in order from Jan. to the present. But yeah, you can make it hard or impossible for the IRS to prove you wrong even if they can't make heads or tails out of all the documentation. Hit them with boatloads of paper work.
