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

[TAArrowood]

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.

 

[01Foreman400]

It started on 1/1/22.

 

[BBob]

Part of the Biden “we won’t raise your taxes” “it’s already paid for” plan.

 

[rjschill]

The sale of personal items sold at a loss is non taxable income. It can’t be used as a deduction either.

 

[Carr5vols]

Would splitting funds up to be less than 600 work?

 

[Gutshotem]

The sale of personal items sold at a loss is non taxable income. It can’t be used as

It's my understanding that Paypal will send a 10-99 and it'll be on the seller to prove whether it was a gain or loss, so I'd imagine you'd need proof of what you paid.

 

[Gutshotem]

Would splitting funds up to be less than 600 work?

$600 is total for the year, not individual sales.

 

[Bubblehide]

Geez, I read the title and thought this might be something important.

 

[Chuck Barnes]

Back to money orders and certified checks...

 

[BachelorJack]

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

 

[Gutshotem]

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

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.

 

[gbflyer]

Back to money orders and certified checks...

Yes!

 

[Broomd]

The sale of personal items sold at a loss is non taxable income. It can’t be used as a deduction either.

That's true and sounds all well and good, , but the onus of all of this is on us now. The IRS assumes that we are profiting unless we take the time to 'prove' otherwise. Many will not.

Phark 'em, won't use PP anymore over $600. Good 'ole MO or check.

 

[KeatonMullenix]

Not $600 transactions, it’s cumulative over $600 if I understand correctly. FF still an option though.


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[Jpdhunter]

I’m not an accountant, however I do work with one for my business. With 1099’s you can write off purchases toward that income, so in reality this could potentially help your bottom line. Sell a scope for 1200 that you paid 1600 for, that is a net loss of 400. That would come off your taxable income of your day to day job. Which in turn would be less taxes paid. Just means you have to hold onto receipts or proof of purchase.

Or maybe I should stay away from tax law and just stick to building.

 

[gbflyer]

I’m not an accountant, however I do work with one for my business. With 1099’s you can write off purchases toward that income, so in reality this could potentially help your bottom line. Sell a scope for 1200 that you paid 1600 for, that is a net loss of 400. That would come off your taxable income of your day to day job. Which in turn would be less taxes paid. Just means you have to hold onto receipts or proof of purchase.

Or maybe I should stay away from tax law and just stick to building.

That’s true however the administration costs for all that for someone who does a lot of it can overpower the deduction. You pay one way or the other I guess.

 

[Newtosavage]

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.

The rich have good attorneys. It's more time consuming and difficult to keep them honest.

 

[A382DWDZQ]

It is aggregate for the year, not individual transactions. Nobody has to prove they are taking a loss on selling anything any more than they already did under existing tax law.

 

[fwafwow]

I’m not an accountant, however I do work with one for my business. With 1099’s you can write off purchases toward that income, so in reality this could potentially help your bottom line. Sell a scope for 1200 that you paid 1600 for, that is a net loss of 400. That would come off your taxable income of your day to day job. Which in turn would be less taxes paid. Just means you have to hold onto receipts or proof of purchase.

Or maybe I should stay away from tax law and just stick to building.

Your last sentence is correct.

 

[fwafwow]

The rich have good attorneys. It's more time consuming and difficult to keep them honest.

The attorneys?