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

[SirChooCH]

Okay so how did they distinguish the difference between what is actually Goods/Services and what is FF payments? Wouldn't everyone just switch to unprotected FF payments to skirt this?

Or are they going to just try to tax everything the same and you have to fight it? My wife and I send money back and forth all the time and it definitely exceeds $600 per year but isn't "additional income" but how would PP/Venmo know the difference? They just report to the IRS the money into my bank and I have to fight it after?

 

[long hunter]

Seems too me this is just going too be the begining, how many of us have savings accounts, how many are direct deposit paid either from your employeer or retirement and s.s. payments, how many have squeezed evrey penny over the years too build a nest egg, and hopefully a savings account for the future,the bastards in washington want it all, Who the hell only has a savings,checking or other accounts with only 600 dollars in it. I n my opinion everyone who has money in the bank should go get it, then listen too the bankers piss and moan, we are being driven down a rabbit hole of total servitude too a corrupt gov. Seems too me there was a war fought over that a while back about 350 years ago.

 

[*zap*]

Have $? = Your life don't matter.....unless your filthy rich.

Either get used to it or find ways around it because these folks will be in charge for a while....2022 they will pick up more seats. The gop is done, welcome to the brave new world which quite a lot of people on here voted for.

 

[cuerro viejo]

Okay so how did they distinguish the difference between what is actually Goods/Services and what is FF payments? Wouldn't everyone just switch to unprotected FF payments to skirt this?

Or are they going to just try to tax everything the same and you have to fight it? My wife and I send money back and forth all the time and it definitely exceeds $600 per year but isn't "additional income" but how would PP/Venmo know the difference? They just report to the IRS the money into my bank and I have to fight it after?

This legislation came from the ability to now track all transactions via PP, Venmeo, cash app, Apple pay etc.

The prominent use of transfer apps to send currency is the way, and idiotic Government covid spending is the why.

 

[FLATHEAD]

Told my wife back in Nov. after the election to get ready for high gas and taxes.
Cant believe anybody thats not on welfare would have voted for that prick.

 

[MattB]

Does the PayPal part of this apply to friends and family or just goods and services?

Dollars paid

 

[Timeless61]

This has no bearing on majority of us that sell used gear. You will not be taxed on your used personal items that you sell for less than what you purchased them for. If you're operating a business to generate income, the rules haven't changed either. This isn't hard stuff.

@TK-421 please explain. If I understand the new rule correctly, any $ received though paypal for selling used stuff will generate a 1099-k. How would an individual prove it was sold at a loss, and where is the provision saying it won't be part of gross earnings?
Thanks!

@TK-421 please explain as well.

 

[11boo]

@TK-421 please explain as well.

He means you *might* beat the rap. You won’t beat the ride. Somebody got to pay the free scat army.

 

[cornfedkiller]

You guys should talk to a CPA.

If you are selling personal assets (assets that have not been used/deducted in a trade or business), you should see no tax effect from this, unless you are selling these personal use assets at a gain (which is doubtful). The key here is personal and not business.

Personal - if I buy a pair of binos for $1,600, use them personally for 2 years then sell for $1,000. I have a loss on a personal use asset which is not deductible. If the $1,000 gets reported to IRS, then I would report the $1,000 of income but would show my basis equal to $1,000, showing no gain or loss. Yes, you do get to use your basis to offset the income.

Business - if I'm a guide and report that activity as a trade or business and I buy bino's for $1,600 and write them off on my schedule C and then sell those bino's for $1,000, then I do have a taxable effect...and report the $1,000 of income. This is only fair because you previously wrote off the full amount.

Business of selling goods - if I buy stuff ebay and then re-sell it, then absolutely this is a taxable transaction and likely yields ordinary income/loss (reported on schedule C for sole proprietors).

The only thing that has changed here is reporting thresholds, not the actual taxability of personal use assets sold. Realistically, what IRS is trying to do is to catch people that buy and sell large volumes of items (i.e. this is a trade or business) that do not report it. They are not going after bad hunters like me that sell shit when they don't kill an elk.

All of that sounds correct and was a great explanation, but my question (and I believe several others) is this: let’s say I decide this year to sell my $1500 binos, $1500 rifle, and $500 pack... all of which were purchased with personal money and not deducted, therefore should not be subject to any tax on the sale.. but then next January, I get a 1099 from PayPal reporting that $3500. Whats my accountant supposed to do with that? When I tell him all of that was personal, he just doesn’t report it on my income?

And if I end up getting audited, they’ll just see that those items were never deducted in the first place? And id probably have to prove what items that $3500 came from, correct?

 

[*zap*]

The paypal sale will need a description of the item so you can print it and refute the 1099, 'used bino's' for example.

 

[Timeless61]

All of that sounds correct and was a great explanation, but my question (and I believe several others) is this: let’s say I decide this year to sell my $1500 binos, $1500 rifle, and $500 pack... all of which were purchased with personal money and not deducted, therefore should not be subject to any tax on the sale.. but then next January, I get a 1099 from PayPal reporting that $3500. Whats my accountant supposed to do with that? When I tell him all of that was personal, he just doesn’t report it on my income?

And if I end up getting audited, they’ll just see that those items were never deducted in the first place? And id probably have to prove what items that $3500 came from, correct?

The “income” would be offset by your basis. For personal stuff there would be no deductions. But you technically would have to be able to prove that you paid more than what you sold the items for so no real income was generated.

The whole thing is ridiculous and will create a lot more work with reporting and added costs. It’s ultimately furthering the weaponization of the IRS like the admin wanted to do.

 

[cod007]

Have $? = Your life don't matter.....unless your filthy rich.

Either get used to it or find ways around it because these folks will be in charge for a while....2022 they will pick up more seats. The gop is done, welcome to the brave new world which quite a lot of people on here voted for.

Usually agree with u zap, but not this post.
Unless they can steal yet another election, this whole ongoing scam will come crashing down on them. The audit report(s) will be dropping soon. The Durham report(s) are dribbling out. (Sussman indicted). The complete hypocrisy in front of the American people, along with obvious policy failures are creating the perfect opportunity for the Great Awakening. It’s on the way, ladies and gentlemen. Have faith and hope.

 

[Mike7]

Usually agree with u zap, but not this post.
Unless they can steal yet another election, this whole ongoing scam will come crashing down on them. The audit report(s) will be dropping soon. The Durham report(s) are dribbling out. (Sussman indicted). The complete hypocrisy in front of the American people, along with obvious policy failures are creating the perfect opportunity for the Great Awakening. It’s on the way, ladies and gentlemen. Have faith and hope.

I hope your right, but unrelated to any ideology even, when you have for example 35% of the country (on a recent poll) that is so ill informed or brainwashed that they believe over 50% of people with covid get hospitalized, then anything can happen.

To me that means that the "big corporation-big tech-media-govt-public employees unions-lawyer's guild" cabal starts off the 100 yd dash at the 35-40 yd line, while the rest of us start at 0. That is a lot of ground to make up.

 

[*zap*]

Usually agree with u zap, but not this post.
Unless they can steal yet another election, this whole ongoing scam will come crashing down on them. The audit report(s) will be dropping soon. The Durham report(s) are dribbling out. (Sussman indicted). The complete hypocrisy in front of the American people, along with obvious policy failures are creating the perfect opportunity for the Great Awakening. It’s on the way, ladies and gentlemen. Have faith and hope.

I do not think there will be any great awakening....wokeup maybe.

As long as the financial system, the dollar and the markets stay up then the contentment of the material world is going to stand in the way of any significant change.

 

[Button]

It’s frustrating to say the least…

How working people can vote themselves into having less $ is astonishing. I can kind of see how deadbeat, natural resource consuming, gov tit sucking slugs vote themselves into an all encompassing tyrant society, simply by stupidity on so many levels.

 

[Fartrell Cluggins]

If you sell binos for $1000, what would keep you from stipulating that the payment is to be made in the form of two $500 money transfers?

 

[Anglo-American]

Taxation is theft.
Interest is tax.
Promissory notes are debt notes, not real money backed by gold.

 

[Reburn]

If you sell binos for $1000, what would keep you from stipulating that the payment is to be made in the form of two $500 money transfers?

doesnt matter if they send you a thousand $1 transfers. At the end of the day over $600 will have entered your account for the year.

 

[Rich M]

Funny how a lot of folks don't get it. They are probably the ones who voted for him in the first place.

You now pay at least $1 more per gallon of gas and will be taxed on every dollar as many times as possible so they can give it to themselves, special interests, and someone who doesn't work who votes for more free stuff.

 

[Evol]

My guess is they'll probably make a schedule you'll have to fill out to negate the 1099. Big brother!