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PayPal 1099-K changes

Discussion in 'Marketplace Discussions' started by markshan, Aug 23, 2021.

  1. Spitfire

    Spitfire Senior Member

    Location:
    Pacific Northwest
    Thanks for the kind words. This extra work is taking a lot of the fun out of doing this for sure. I'm trying to get a process down so I'm efficient as I can be at doing all this. A lot of this reminds me of work using Excel spreadsheets and Adobe Acrobat to modify PDF files.
     
    Quakerism likes this.
  2. jvc444

    jvc444 Well-Known Member

    Location:
    CA, U.S.A.
    Oh man, the eBay forums are blowing up with
    The good 'ol days of simply just listing something for sale online, getting paid and not worry about anything, else are gone. I'm hoping local cash sales will pick up, and hopefully I can find some good deals locally.
     
    High Rant District and aoxomoxoa like this.
  3. kwadguy

    kwadguy Senior Member

    Location:
    Cambridge, MA
    Outside of those doing this for a living, I would guess that maybe 5% of sellers could provide proof of their cost basis for stuff being sold on eBay, even with a gun to their head.

    Everyone else is going to make something up, or, as the politicians who dreamt this up hope, will throw up their hands and just not claim any cost basis (hence paying taxes on the entire amount). It's no coincidence that the IRS does not provide a worksheet for 1099-K, thereby requiring the filer to figure out for themselves how they might even go about claiming a cost basis (on Schedule C).

    This will be a massive win for taxation, which will result in taxes that are probably far in excess of those that people should truly be paying.
     
    Swordsandchains likes this.
  4. teag

    teag Forum Resident

    Location:
    Colorado
    Paranoia strikes deep......
     
  5. Quakerism

    Quakerism Monk

    Location:
    Rural Pennsylvania
    Well, this is potential taxable income that legally and logistically could have been collected in prior years had the taxing authorities enlisted the assistance of electronic payment platforms earlier.

    Moral and ethical arguments aside, if income was motivated by profit, then it is taxable. What sticks in the craw of some will be that they got scooped up in the dragnet with other “more deserving” actual significant tax evaders.

    What calls into question a real problem for tax collectors is the appearance of unfair tax enforcement. There are few “loopholes” for all the new small businesses this new law will create come time to file taxes. Voluntary submission is important.

    The tax collectors next frontier?

    The under the table cash payroll economy. But how?
     
  6. jvc444

    jvc444 Well-Known Member

    Location:
    CA, U.S.A.
    I just listed something for sale on Craigslist. For the first time ever, it asked me to enter my cell phone to get an authorization code. I hope this is to deter scammers or spammers, and not to track anyone's sales.
     
  7. Hey, if anything ... selling on eBay cuts into your profit by, say, 15% - 25% (with expenses included). Add to that another potential 20% for the gubment (by claiming all sales as profit - not having proof of purchase). That's only 35% to 45% of your sale, gone. No big whoop, right? :shrug:




    Yes, I'm being facetious --- (maybe?).
     
    Last edited: Jan 15, 2022 at 4:59 PM
    aoxomoxoa likes this.
  8. Gabe Walters

    Gabe Walters Forum Resident

    Income is taxable whether there’s a profit motive or not. Hobby income, by definition, is not driven by a profit motive. Yet it’s taxable.
     
    Quakerism likes this.
  9. jvc444

    jvc444 Well-Known Member

    Location:
    CA, U.S.A.
    What you said is true.
     

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