WTS FYI- Tax changes for 2022 on PayPal, venmo, etc

Pwill

Lil-Rokslider
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This video explains the changes coming for 2022, not ideal. Hopefully the video plays.

Basically if you receive more than $600 in a year through PayPal, etc they have to send you a 1099.

 
Interesting. From a quick read it looks like this is for G&S on PayPal not friends and family but need to confirm. If selling gear G&S may want to keep tabs on price paid so can net any profit/loss on schedule C. I am going to research this more but it seems like the IRS is assuming anyone who is selling is a sole proprietor. Perhaps a Rockslide checkout system may be needed someday if they really crack down unless everyone is keeping tabs. I would hate to see someone sell expensive gear and pay full tax and the extra self-employment tax when they already paid for it.. Not sure how they will view the individual but if self-employed then it could be interesting. I may be off on my understanding but this seems like a huge change and I’m going to dig into it further.
 

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Here’s what I was told by an accountant

- *disclaimer* I am not an accountant nor should you take financial or tax advise from me* -

If you have a receipt from the original in transaction the 1099 applies to the proceeds. So if I buy something and resell if for the same amount you don’t need to pay taxes on the transaction as there is no incremental income. Although if you accept a payment for shipping you should keep the shipping receipt as well. To prove you paid for shipping. That is using goods and services function.
 
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