WTT *** ALERT. ****** Please read

[ODB]

If you sold these items at a loss its not taxable. This isnt hard to prove.

How's that? Do you have receipts for scopes or binoculars you bought 15 years ago?

 

[ODB]

I just heard on tv that the IRS is/has been forcing PayPal and other online payment services to report any payments (goods and services) $600 and over. It appears that the IRS may expect the receiver of the payment to add the payment to their taxable income. This is the first I’ve heard and it appears to have been going on for a while. I hope the report is in error, but does not appear to be. Thanks.

There is a price to pay for convenience... 'Just send it to my Venmo/PayPal/Zelle, etc." results in total digital breadcrumbs of everything you buy/sell.

Last I heard this did not just affect paypal,. etc, but any account that gained $600. Janet Yellen was asked about it and her remark was something to the effect of making sure the rich are paying their fair share...

That was when it was initially proposed - have to hit the archive for the details

 

[A382DWDZQ]

I just heard on tv that the IRS is/has been forcing PayPal and other online payment services to report any payments (goods and services) $600 and over. It appears that the IRS may expect the receiver of the payment to add the payment to their taxable income. This is the first I’ve heard and it appears to have been going on for a while. I hope the report is in error, but does not appear to be. Thanks.

The report is in error.

There is a price to pay for convenience... 'Just send it to my Venmo/PayPal/Zelle, etc." results in total digital breadcrumbs of everything you buy/sell.

Last I heard this did not just affect paypal,. etc, but any account that gained $600. Janet Yellen was asked about it and her remark was something to the effect of making sure the rich are paying their fair share...

That was when it was initially proposed - have to hit the archive for the details

Here is what Yellen said June 16th, 2021, which addresses the intial proposal details, but the proposal was updated in October.

Secretary Yellen: (01:44:02)
We’re asking financial institutions that already have an obligation to report on the 1099-INT form interest earned by individuals if it amounts to more than a minimal amount. I can’t remember, maybe there’s a $10 cutoff. We’re simply asking to add two boxes to that form, one that would be the aggregate inflows into the account over the course of the year, and the second would be the aggregate outflows from the accounts. So it’s not detailed information. It’s for accounts where there’s already a provision of information from financial institutions directly to the IRS. And we’re proposing two additional bits of data that are easily accessible, and involve essentially no additional burden on financial institutions. Those pieces of information are not actionable. They’re not taxable items in their own right, but they would greatly assist the IRS in knowing where to target their audit resources.

In October, the threshold was changed from $600 to $10,000. Here is an updated fact sheet. https://www.finance.senate.gov/imo/...althy Tax Cheats Pay Taxes Owed Myth Fact.pdf

 

[ODB]

The report is in error.

Here is what Yellen said June 16th, 2021, which addresses the intial proposal details, but the proposal was updated in October.


In October, the threshold was changed from $600 to $10,000. Here is an updated fact sheet. https://www.finance.senate.gov/imo/media/doc/10.19.21 Ensuring Wealthy Tax Cheats Pay Taxes Owed Myth Fact.pdf

Ah, yes. That’s right, I forgot about the Increase. Thanks for the catch and the links.

 

[KeatonMullenix]

Ah, yes. That’s right, I forgot about the Increase. Thanks for the catch and the links.

So, $600 or $10,000?


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[TAArrowood]

I knew about the original proposal and knew there had been enough uproar that they were holding on it temporarily. I was just reporting what I heard on tv today. There has been a lot of feedback and input. Hopefully the $10k number is the correct one. In any case, those of us who buy and sell online should be aware of any changes so we don’t get any surprises. The it’s is all about challenging you tax reporting and looks like it could get worse. Don’t mean to sound like an alarmist, but we should all be sensitive to potential changes that might limit us in any way. Thanks for the comments.

 

[fwafwow]

Plenty of sources are stating it’s $600. I’m not in favor of the change, but the level of concern is, imho, overblown.

 

[TAArrowood]

Just found some good reading.

 

[Wildstreak]

Every damn American should have a problem with the fact that they have to "prove" that they didn't turn a profit on the $700 scope or couch they sold to someone on Rokslide or FB.

Elon was 100% right when he said the 87,000 new IRS agents weren't hired to make sure the rich are paying their share.

This, this and this! Everyone is bickering whether it’s $600 or $10,000. I don’t care what the number is. It’s my property that I paid sales tax on and bought with the money that I already paid income tax on. I should not have to pay any tax on it again. Ever.

 

[jam66]

Does Gunbroker generate a 1099 when you go over the $600 limit when someone pays with a Postal MO?


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[5MilesBack]

Plenty of sources are stating it’s $600. I’m not in favor of the change, but the level of concern is, imho, overblown.

As citizens we should all be concerned when the government continues it's constant push for more and more surveillance and control over the citizens.

This is also one of those policies that's oh so easy to see that it fails the simple logic test. If this really was about "going after the ultra wealthy".......then they'd be debating the outflow/inflow threshold's in the millions........not $600 versus $10k. No......this is about surveilling and controlling every American citizen.

 

[hobbes]

They may have a bunch of new agents but the last time I called (a month ago), I sat on hold for 1 hour to talk to someone that couldn't help then another hour for someone that was apparently working from home with a kid screaming in the background that didn't give a shit about my questions and wanted nothing more than to get off the phone. She was clearly incompetent and didn't have any answers.

 

[Brendan]

THIS ISN'T A CHANGE TO THE LAW IN ANY WAY (And, there are at least 2-3 threads on this already saying the same thing, how many more do we need?)

Prior to reporting change: If you sell personal gear at a profit, you pay taxes. If you sell personal gear at a loss, you don't.

After reporting change: If you sell personal gear at a profit, you pay taxes. If you sell personal gear at a loss, you don't.

All that's changing is PayPal and Venmo etc have to report.

The IRS has always put the onus on you to prove it if they audit you.

For most of us that are losing money for "gear rental" - there's no tax implication.

 

[EastMT]

Ok, there seems to be some confusion. The way I read it, PayPal/Venmo limit is still set at $600. But there was also a provision requiring all banks to report cash deposits of more than $600 per year. They raised the bank cash deposit to 10,000 per year, not the PayPal 1099.

So PayPal $600 still get a 1099, so I guess keep receipts for everything. $10,000 cash not salary or on a W2 going into your account has to be reported by your bank.

 

[eroksolfe]

Ok, there seems to be some confusion. The way I read it, PayPal/Venmo limit is still set at $600. But there was also a provision requiring all banks to report cash deposits of more than $600 per year. They raised the bank cash deposit to 10,000 per year, not the PayPal 1099.

So PayPal $600 still get a 1099, so I guess keep receipts for everything. $10,000 cash not salary or on a W2 going into your account has to be reported by your bank.

This seems to be right. It’s not an either/or thing, it’s a both/and.


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[TAArrowood]

Any other good/new info by anyone?