IRS Delayed the 1099 600$ rule for one year. See article

[BRTreedogs]

People worry too much geez. Sell what you want for what you want and dont report a single red cent of it as its all net loss, done. Make the IRS prove otherwise, they wont.

Geez people if youre going to sell something for $700 then report it on your tax return as income you deserve to lose money.

You have never been audited have ya.
The whole thing with this is PP is going to report to the irs. The chances of getting audited go way up.
Once they see the error they will open the audit and send you a bill.
If you can't prove it or pay it they will garnish you.

Sure you MAY get away with it.
The IRS doesn't have to prove shit.
The tax payer does. They will just take your money.
Last time I got audited the guy straight said he didn't believe about 20% of the proof i had.
Straight said I was lying and provided me with a bill.
They will get there money.

 

[centershot]

There is a lot of confusion on here, rightfully so, about the new (postponed) reporting.

Even if you received a 1099 for sales it is only taxable IF you sold items for a gain, over what you originally paid.

Sales of personal items, at a loss, are not reportable or deductible on your tax return. The IRS only wants to tax any “income” but will not allow losses, unless they are for a legitimate business purpose.

In short, if and when you receive 1099s for selling items on here or other sites and the cost to you of the items sold is more then what is reported on the 1099 there will be no income to tax.

When it goes through just Inform your tax preparer that the sales generated per the 1099 were sales of personal items at a loss, if that is truly the case.

There’s no reason for people on here to stop accepting G&S transactions other than it may create an additional piece of paper to include with your yearly tax information.

So do you have to keep receipts for all this stuff to prove a loss? Maybe I should, I may end up paying no taxes at all if I report all the money I lost on hunting gear.........

 

[centershot]

You have never been audited have ya.
The whole thing with this is PP is going to report to the irs. The chances of getting audited go way up.
Once they see the error they will open the audit and send you a bill.
If you can't prove it or pay it they will garnish you.

Sure you MAY get away with it.
The IRS doesn't have to prove shit.
The tax payer does. They will just take your money.
Last time I got audited the guy straight said he didn't believe about 20% of the proof i had.
Straight said I was lying and provided me with a bill.
They will get there money.

And with 87,000 new IRS agents (thanks Joe) there will be plenty of auditor wanting to impress their new boss............

 

[BRTreedogs]

So do you have to keep receipts for all this stuff to prove a loss? Maybe I should, I may end up paying no taxes at all if I report all the money I lost on hunting gear.........

You can offset the "income" on the sales.
But you can't further reduce your reportable income.

 

[Szwampdonkey]

You have never been audited have ya.
The whole thing with this is PP is going to report to the irs. The chances of getting audited go way up.
Once they see the error they will open the audit and send you a bill.
If you can't prove it or pay it they will garnish you.

Sure you MAY get away with it.
The IRS doesn't have to prove shit.
The tax payer does. They will just take your money.
Last time I got audited the guy straight said he didn't believe about 20% of the proof i had.
Straight said I was lying and provided me with a bill.
They will get there money.

You made one error, i corrected it for you "Sure you WILL get away with it".

They arent adding your $600 sale of binos that are $1000 new to your income, period.

 

[BRTreedogs]

You made one error, i corrected it for you "Sure you WILL get away with it".

They arent adding your $600 sale of binos that are $1000 new to your income, period.

You are wrong. And you have absolutely no idea what you will get away with.

Why don't you completely quite paying taxes if your so sure you can get away with it..

Pp will report it as income.
The irs will recalculate your return based on it being income. If you can't prove otherwise you will pay the adjusted amount one way or the other.

They irs sent my mom a bill for .52 cents once.
They will go to all costs if they think you owe them.

 

[Szwampdonkey]

You are wrong. And you have absolutely no idea what you will get away with.

Why don't you completely quite paying taxes if your so sure you can get away with it..

Pp will report it as income.
The irs will recalculate your return based on it being income. If you can't prove otherwise you will pay the adjusted amount one way or the other.

They irs sent my mom a bill for .52 cents once.
They will go to all costs if they think you owe them.

If you make $150K or less and believe the IRS is coming after you for an additional $40 worth of tax income because you sold a pair of binos to someone using Paypal youre delusional.

But you do you, worry away. The rest of us will be going about our business as usual.

 

[BRTreedogs]

If you make $150K or less and believe the IRS is coming after you for an additional $40 worth of tax income because you sold a pair of binos to someone using Paypal youre delusional.

But you do you, worry away. The rest of us will be going about our business as usual.

Dude it has in fact already happened to me.

Because they didn't believe any company would make someone travel as much as I do.

I let my CPS handle most of it.
I provided a stack of paperwork.
The guy sent back a letter saying I don't believe you but ill meet you in the middle.

Here is your new bill.

Then he opened it up for all 3 years.

You can speculate all you want.

I have in fact real and actual tangible experience.

Something you obviously do not.

 

[Szwampdonkey]

Dude it has in fact already happened to me.

Because they didn't believe any company would make someone travel as much as I do.

I let my CPS handle most of it.
I provided a stack of paperwork.
The guy sent back a letter saying I don't believe you but ill meet you in the middle.

Here is your new bill.

Then he opened it up for all 3 years.

You can speculate all you want.

I have in fact real and actual tangible experience.

Something you obviously do not.

Just because it happened to you, ONE person, does NOT mean its going to happen to MOST people. Congrats, youre to the one in a million, literally, that got audited for nothing.

Now, just realize out of the 200 million people paying income taxes in the US 99% of them can sell whatever they wish on Paypal without worrying about it in the least. The sky is NOT falling.

So like i said, go on worrying about it if it makes you happy the majority of us have nothing to worry about in the least and couldnt care less they arent going to force you to add that $600 bino sale to your income or audit you over it thats absolutely ridiculous. Now, if you sold 30 pairs of binos at $600 then yeah, you should probably report it as income if it is or keep documents proving it isnt.

You do realize that if you buy a pair of binos for $1000 and then sell them for $600 it isnt income though right? I never asked if you knew that to start?

 

[BRTreedogs]

Just because it happened to you, ONE person, does NOT mean its going to happen to MOST people. Congrats, youre to the one in a million, literally, that got audited for nothing.

Now, just realize out of the 200 million people paying income taxes in the US 99% of them can sell whatever they wish on Paypal without worrying about it in the least. The sky is NOT falling.

So like i said, go on worrying about it if it makes you happy the majority of us have nothing to worry about in the least and couldnt care less they arent going to force you to add that $600 bino sale to your income or audit you over it thats absolutely ridiculous. Now, if you sold 30 pairs of binos at $600 then yeah, you should probably report it as income if it is or keep documents proving it isnt.

You do realize that if you buy a pair of binos for $1000 and then sell them for $600 it isnt income though right? I never asked if you knew that to start?

Yes I realize that.
But you also realize the majority of mid aged men buying and selling gear are not real good at keeping records rite?

I'm not saying report the 1099 every time.
I'm saying its probably easier.
But also if you don't realize the chances of getting audited go up.
And you better have records so you can prove everything.
They won't just take your word for it.

I can also assure you it would be easier to account for the 1st go round.
Rather then getting the audit letter a couple days before elk season opens.

 

[fwafwow]

So do you have to keep receipts for all this stuff to prove a loss?

https://aboutbtax.com/6dg - not required, but a very good idea.

Maybe I should, I may end up paying no taxes at all if I report all the money I lost on hunting gear.........

That won't work. See above link.

You can offset the "income" on the sales.

Unfortunately that won't work - unless you are in the business of buying and selling.

 

[BRTreedogs]

Unfortunately that won't work - unless you are in the business of buying and selling.

What I'm saying is if PP reports $600 of "sales/income" you can offset that by showing the loss.
But if you sold a $600 spotter and bought a $6k btx system you can't further reduce your taxable income.
Unless you can prove the btx is required for use at work.

You can offset you sales, but we can't just suddenly write off all hunting gear.

 

[NDGuy]

Use friends and family problem solved...?

 

[BRTreedogs]

Use friends and family problem solved...?

Like I said I had members agree to and ignore that.
On purpose or what idk.
And it happened on the most expensive things I've sold on here to. Like optics.

 

[NDGuy]

Like I said I had members agree to and ignore that.
On purpose or what idk.
And it happened on the most expensive things I've sold on here to. Like optics.

Yes I know what you mean, but use that exclusively and carry on. Doesn't apply to the new rules as of now.

 

[BRTreedogs]

Yes I know what you mean, but use that exclusively and carry on. Doesn't apply to the new rules as of now.

The tax payer is and always was supposed to report.
The only thing that changed is they delayed pp from ratting you out, making more likely to get away with.
The reporting and offset of the income is still the same.
We were supposed to be doing it this entire time.

 

[fwafwow]

What I'm saying is if PP reports $600 of "sales/income" you can offset that by showing the loss.
But if you sold a $600 spotter and bought a $6k btx system you can't further reduce your taxable income.
Unless you can prove the btx is required for use at work.

You can offset you sales, but we can't just suddenly write off all hunting gear.

I don't think that's right. See Q7 in the link I've posted above - this time copied below (emphasis added):

+++++
Q7. In a single online transaction on an online marketplace, I sold two sets of four tickets (I bought for personal use) to two separate sporting events for $1,000 (one set for $800 and the second set for $200) and I received Form 1099-K. I purchased each set of tickets for $250 ($500 total) two months prior to selling them. How do I report the sale on my tax return? (added December 27, 2022)

A7. You must report the gain and loss separately because the loss on the second set of tickets cannot offset the gain on the first set of tickets. The $550 gain from the sale of one set of tickets ($800 sales price - $250 purchase price = $550 gain) must be reported as short-term gain on Form 8949 and Schedule D. The $50 loss transaction from the other set of tickets ($200 sales price - $250 purchase price = ($50) loss) should be reported as follows: Form 1040, Schedule 1: Part I – Line 8z, Other Income. List type and amount: "Form 1099-K Personal Item Sold at a Loss…. $200" to show the proceeds from the sale reported on the Form 1099-K and Part II – Line 24z, Other Adjustments. List type and amount: "Form 1099-K Personal Item Sold at a Loss…. $200" to show the amount of the purchase price that offsets the reported proceeds.

 

[NDGuy]

The tax payer is and always was supposed to report.
The only thing that changed is they delayed pp from ratting you out, making more likely to get away with.
The reporting and offset of the income is still the same.
We were supposed to be doing it this entire time.

As of now, still nothing gets reported if it is under friends and family

 

[Fuenstock]

Always more tax and never less.
Im glad to see this postponed a year and hopefully for good!

 

[dsmiley]

IRS delays much-criticized new tax rule on side hustles over $600

Plans to force millions of Americans to report third-party payment app transactions over $600 have been delayed by the IRS after it admitted 'confusion' around the controversial policy.

www.dailymail.co.uk

At least we have another year to buy and sell gear. its a damn shame this is what our country has resorted too. Hoping a new Administration will throw this crap out.

Biggest tax on the middle class/lower in history in my opinion.