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

[ETtikka]

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.

Wrong! Very wrong, this is the whole point of the deal

 

[fwafwow]

Wrong! Very wrong, this is the whole point of the deal

I think his last sentence is technically correct. If you buy binos for $1000 and sell them for $600, you don't have income. But you might have that $600 reported to the IRS. (I only say "might" because I think the rule is payments that exceed $600 per year.)

 

[JeffRaines]

I'm not against this bullshit in hopes to "stick it to the IRS" or whatever(although they probably deserve it). My issue is most gear sales are at a loss... if you lose a receipt you're screwed... and you have to keep that record for quite some time in case of audit.

IMO it's an undue hassle. Its one thing if you're moving $10-$15k worth of stuff every year - but $600? YGBFSM.

Yeah I know, complaining isn't gonna change it.. its just stupid. I predict a rash of online sellers no longer accepting G&S as payment. It sucks on the consumers end. I've always been open to using G&S if it makes the buyer feel better... but that's likely going to change. I don't need the stress of keeping up with every single receipt for every item I buy in case I decide to sell it later in fear of an IRS audit some years down the road.

 

[fwafwow]

I'm not against this bullshit in hopes to "stick it to the IRS" or whatever(although they probably deserve it). My issue is most gear sales are at a loss... if you lose a receipt you're screwed... and you have to keep that record for quite some time in case of audit.

One of the benefits of being addicted to gear buying (and sometimes later selling) AND being lazy so as to do most online, I’ve found that from using online accounts and some email searches, I’m pretty able to easily find what I paid for an item. None of my deals have been for more than I paid, but I’m personally not worried about receipts.

Yeah I know, complaining isn't gonna change it.. its just stupid. I predict a rash of online sellers no longer accepting G&S as payment.

Your prediction has already occurred.

 

[ETtikka]

I think his last sentence is technically correct. If you buy binos for $1000 and sell them for $600, you don't have income. But you might have that $600 reported to the IRS. (I only say "might" because I think the rule is payments that exceed $600 per year.)

My point is that the IRS does not know or care what you paid , all they see is “income” amount reported by PayPal , eBay or whoever, then you have to fill forms and reconcile, but all IRS is told is that you received 600$ in income

 

[ETtikka]

Posting feedback is a much more trustworthy tool than PayPal GS (no seller protection) and IRS consequences

 

[fwafwow]

Posting feedback is a much more trustworthy tool than PayPal GS (no seller protection) and IRS consequences

^^^this

 

[TheWhitetailNut]

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.

This is very poor advice and may God have mercy on whomever listens to you on anything.

 

[antelopedundee]

I thought taxing the most wealthy people would fix all the problems? Guess all those billionaires not reporting $600 transactions is what this is intended for and not the working middle class.

I expect that there are some billionaires who don't bother to report $6 million transactions.

 

[TheWhitetailNut]

I expect that there are some billionaires who don't bother to report $6 million transactions.

Billionaires aren't as sloppy as hundredaires. They have records to back up every transaction right down to a tube of toothpaste.

 

[antelopedundee]

Billionaires aren't as sloppy as hundredaires. They have records to back up every transaction right down to a tube of toothpaste.

Supposedly some don't bother to file at all from some of the things I've read in the past. Once this other crap kicks in it will be important to document your basis in the event of audit.

 

[ShotsByScott]

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.

This aged well, just in from McCarthy’s new found power.

Fair Tax Act Would Replace Income Tax With 30% Sales Tax

The Fair Tax Act is reportedly going to get its first-ever floor vote. Find out how it would change the tax system and if it's likely to be approved.

www.fool.com

 

[antelopedundee]

Would 30% of what Warren Buffett spends be more or less than he'd pay under the current system? Seems like he's tighter than a duck's ass and that's water tight. Even then, he [and similar rich folks] would likely try to find or claim loopholes or exceptions.
Would that apply to personal filers or business too?

 

[Dan Carey]

When they get their new crypto currency in place, they won't need that $600. rule to track you.

 

[Szwampdonkey]

This is very poor advice and may God have mercy on whomever listens to you on anything.

So far, life has proven me correct and you wrong. I’ll let you know when the IRS comes looking for their extra 7 bucks.

 

[Happy Antelope]

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.

You can still buy and sell gear and not pay any tax. You are only paying tax if you made a profit on what you sell.

 

[antelopedundee]

If it was in effect for last year and you are using one of the online tax prep services would you simply change the amount on the 1099-K to just the profit?

 

[Insomnia]

You know the normal rule of thumb to not talk about politics (at least in certain settings)? I still do my best to follow it, but when someone else brings up politics, it's surprising to me as to how many people nod in agreement (even if they are probably of another "party" or mindset) when I say "I think all politicians suck. All of them."

Dude, I'm pretty liberal for this crowd of folk, but it's not like I can name a single politician, liberal or otherwise, that I would support even 20%. I think the last pres candidate I considered voting for was Romney.

 

[crypt_keeper]

One risk of crypto is losing more in the crypto than taxes that could be due.

Thats a risk with most investments.

"Stable coins" are pegged to the U.S. dollar and could be used in its place to pay for things.

 

[SHTF]

You can still buy and sell gear and not pay any tax. You are only paying tax if you made a profit on what you sell.

Yeah but if you do a large amount of buying and selling and you dont report any profits at all. Better believe your going to make the audit list and whatever you dont have receipts for or cant prove you did not make a profit, they will tax you for.