Do you like higher taxes? Too bad, they are coming like it or not...

[Elcy]

My wife owns a small business, recives a lot of payments though paypal. She recently told me paypal is going to change the threshold for when they send 1099-k's out. I did some internet snooping and found she was right; bad news for guys who like to sell gear here and on other classified forums.

Selling of used gear/clothes/whatever will now be reported to IRS as income:

Starting January 1, 2022, the American Rescue Plan Act kills the two-step “more than $20,000 and more than 200 transactions” threshold for third-party settlement organization (TPSO) filing of 1099-K and replaces it with the single “$600 or more” reporting threshold.

 

[elkbowhuntr]

Yup - Biden has to support all the free-loaders somehow, might as well be on our backs.

 

[William Sublette]

 

[DangerRanger]

Fml

 

[ChasinDoes]

so if I sell my binoculars to someone on rokslide for $1000 that i bought new at the store, I pay taxes on the money I earned at work, then I get get taxed again at the store when I buy them, and now I'm gonna get taxed again when I sell them??? The same money is gonna get taxed 3 times???

(couldn't I just have the buyer send me two payments of $500 so I'm under the $600 taxable threshold?)

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[farmer14]

ChasinDoes that’s my question. Is that $600 a running count? So if I sell something for $601, that dollar gets taxed? Or, like the scenario above...can I have two separate cash transactions and stay under $600...

 

[Silveroddo]

The pain in all of this is that you'll have to record and track your expenses to show you didn't sell at a profit. and at that point you won't be taxed. However, if you don't take that step you'll be paying taxes on your stuff, again. Insert expletives here ( ) Look at what a cluster taxes were last year, guess what this is going to do?

I would guess that once you exceed $600 you will get 1099'ed and that will reflect your yearly transaction totals.

 

[Team4LongGun]

Where are all the Trump haters now that we have a full blown border crisis, fentanyl epidemic, Afghanistan disgrace, and a more torn country with “2” anthems being played??
Guess his name calling was small potatoes after all.

 

[Reburn]

ChasinDoes that’s my question. Is that $600 a running count? So if I sell something for $601, that dollar gets taxed? Or, like the scenario above...can I have two separate cash transactions and stay under $600...

$600 total for the year. Single use or in the aggerate. Its just simply a $600 threshold. Bunch of BS.

 

[*zap*]

Yup, $600 for the year and any bank account with $600 in it at any time.....

So many here were anti Trumpers and for the libs......what a bunch of losers they are. I remember the kung flu thread and being called a racist...well, the kung flu was human made in china...libs, socialists, bernie/hillary/harris/biden voters and they proudly paste their vehicles with those names...I may get some socialists suck business cards to leave on windshields...

All those type folks are losers and my enemy....period.

 

[Silveroddo]

I could launch into a George Carlin esque rant about this.

 

[MuleyFever]

Does this mean I can write off my losses for anything I sell for less than what I paid for it? Can I claim tax exemption on purchases since I plan to sell it eventually?

 

[rooster440]

Taxation is theft. Americans know that but until we all stand United it won’t get better unfortunately.


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[Elcy]

@farmer14

To be fair.....
The intent of this (from what I've understood) is to prevent independent contractors from evading taxes:

You hired a consultant to help with your business planning and paid him $50,000 via PayPal. PayPal does not issue the consultant a 1099-K because it fails the more than 200 transactions in a calendar year requirement. In fact, this same consultant could have 10 clients, each paying $20,000 thru PayPal and would not receive a 1099-K.

Like always, It's the little guys who are getting the hose. Selling a $600 pair of binos will increase your gross annual income by $600, which is now reported to the IRS.

IE instead of earning $50,000 in 2022 you'll have earned $50,600, and have to pay (or get a refund of taxes paid) accordingly in April 2023

 

[KBC]

Do you guys do e-transfers? Here in Canada it seems that most of the forum people prefer an e-transfer. It's cheaper than PayPal. Whenever I've bought something off someone here the currency conversion fees I pay through PayPal drive me nuts.

 

[long hunter]

How you like the democrats now, remeber when the idiot was running and he made the statement (HELL YES I AM GOING TOO RAISE YOUR TAXES)

 

[ryjack70ss]

I had 1099 income for the first time last year for some consulting I did. I didn’t know at the time there is an additional 15.3%. That was an unexpected kick in the nuts. So if you are in a high tax bracket, you’re paying >50% on that money. I guess we still aren’t paying our “fair share.” So I agree with @*Zap*. Those that want more of what I earn to support those that don’t want to work can suck it. I still cannot comprehend how people vote for this. Oh wait, they think everything is free. Sheepish.


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[P Carter]

Both parties—including trump, and indeed especially trump—have spent way too much and didn’t have the political guts to pay for it. So yes, either our generation or the next will have to pay significantly greater taxes to pay for it. The trick will be trying to pay just for what is already spent, rather than the increases revenue being seen as justifying increased spending. It’s going to get ugly; I just wish there were some adults in the room that advocated for both decreased spending and increased taxes, as is needed to get our fiscal house in order.

 

[Justinjs]

Could someone post a source on the topic, I haven't found anything.

 

[roadrunner]

Selling a used item paid for with post tax earnings is not income. It's a trade, one product for another.

IRS is plagued by fools led by a fool...