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| | | | | Author: | kzinti  | | Posted: | Jan 4, 2022 18:14 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 93 times | | Topic: | Selling | |
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| In Selling, ZSchoonover writes:
The IRS won't go after four people for Trillions in taxes, they'll go
after four Billion for $1,000 each in taxes.
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| | | | | | | Author: | ZSchoonover | | Posted: | Jan 4, 2022 18:22 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 103 times | | Topic: | Selling | |
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| In Selling, kzinti writes:
| | The IRS won't go after four people for Trillions in taxes, they'll go
after four Billion for $1,000 each in taxes.
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Yep. Those struggling to survive already will be the most impacted.
I used to sell on BL to support my hobby, now I really don't think it will
be worth my time.
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| | | | | | | | | Author: | EmblaRonja | | Posted: | Jan 4, 2022 19:13 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 111 times | | Topic: | Selling | |
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| Did you read it?
It’s just a proposal, nothing has changed.
Yet.
/Niclas
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| | | | | | | | | | | Author: | popsicle | | Posted: | Jan 4, 2022 20:01 | | Subject: | (Cancelled) | | Viewed: | 120 times | | Topic: | Selling | |
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| | (Cancelled) |
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| | | | | | | | | | | Author: | popsicle | | Posted: | Jan 5, 2022 13:42 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 98 times | | Topic: | Selling | |
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| In Selling, EmblaRonja writes:
| | Did you read it?
It’s just a proposal, nothing has changed.
Yet.
/Niclas
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Let me repost without any hint of tax advise
It's beyond "just a proposal" to having been enacted by Congress via the
"American Rescue Plan Act of 2021" The change came into effect Jan 1st, 2022,
essentially lowering the 1099-K reporting threshold, starting in tax year 2022
-popsicle
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| | | | | | | | | | | | | Author: | cosmicray | | Posted: | Jan 18, 2022 19:08 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 65 times | | Topic: | Selling | |
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| In Selling, popsicle writes:
| | In Selling, EmblaRonja writes:
| | Did you read it?
It’s just a proposal, nothing has changed.
Yet.
/Niclas
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Let me repost without any hint of tax advise
It's beyond "just a proposal" to having been enacted by Congress via the
"American Rescue Plan Act of 2021" The change came into effect Jan 1st, 2022,
essentially lowering the 1099-K reporting threshold, starting in tax year 2022
-popsicle
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Which is a year out into the future. We are currently working on tax year 2021.
Nita Rae
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| | | | | | | | | | | | | Author: | SasquatchBricks | | Posted: | Jan 22, 2022 15:18 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 65 times | | Topic: | Selling | |
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| In Selling, popsicle writes:
| | In Selling, EmblaRonja writes:
| | Did you read it?
It’s just a proposal, nothing has changed.
Yet.
/Niclas
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Let me repost without any hint of tax advise
It's beyond "just a proposal" to having been enacted by Congress via the
"American Rescue Plan Act of 2021" The change came into effect Jan 1st, 2022,
essentially lowering the 1099-K reporting threshold, starting in tax year 2022
-popsicle
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Yep and folks should be reporting as income regardless if they get a 1099-k,
now the govt is going to make sure you report it as they will be getting that
nice little 1099-k from essentially everyone.
Scott
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| | | | | Author: | peregrinator | | Posted: | Jan 4, 2022 20:18 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 100 times | | Topic: | Selling | |
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| In Selling, ZSchoonover writes:
It's true that was the previous threshold for receiving a 1099 from a payment
platform, but the threshold for reporting income on your tax return is the same.
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| | | | | Author: | negative | | Posted: | Jan 5, 2022 10:43 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 89 times | | Topic: | Selling | |
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| In Selling, ZSchoonover writes:
| | The previous threshold was $20,000 with at least 200 transactions.
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That depends on the state. Most were $20K, but mine (MA) was always $600. I sold
a bunch of old toys on eBay during the first year of COVID (roughly $5K) and
I got killed at tax time.
Thank you
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| | | | | | | Author: | Tracyd | | Posted: | Jan 5, 2022 11:10 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 85 times | | Topic: | Selling | |
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| In Selling, negative writes:
| | In Selling, ZSchoonover writes:
| | The previous threshold was $20,000 with at least 200 transactions.
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That depends on the state. Most were $20K, but mine (MA) was always $600. I sold
a bunch of old toys on eBay during the first year of COVID (roughly $5K) and
I got killed at tax time.
Thank you
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Sellers have always been required to report it as income to the Federal Government,
it is just that the payment facilitators threshold for reporting it is the new
issue. Just like buyers were required to report and pay state sales tax on items
purchased from another state. The solution was for states to require sellers
to collect it for them now. Very few states bothered to go after buyers not
submitting taxes on out of states purchases thou.
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| | | | | Author: | Bitay15 | | Posted: | Jan 18, 2022 18:48 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 103 times | | Topic: | Selling | |
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| In Selling, ZSchoonover writes:
It is incredibly unfair. If you buy something at a cost of $1500 and sell it
for $2000, your gain in income is $500. That should be what is reported and taxed.
But that is not how this works. You will show $2000 gain in income and have to
pay taxes on all above the $600 threshold. Only businesses can write off expenses,
we cannot. It may be time to go back to craigslist and sell for cash.
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| | | | | | | Author: | SylvainLS | | Posted: | Jan 18, 2022 19:13 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 87 times | | Topic: | Selling | |
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| In Selling, Bitay15 writes:
| | […]
It is incredibly unfair. If you buy something at a cost of $1500 and sell it
for $2000, your gain in income is $500. That should be what is reported and taxed.
But that is not how this works. You will show $2000 gain in income and have to
pay taxes on all above the $600 threshold. Only businesses can write off expenses,
we cannot.
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First, are you sure there’s no automatic deduction and no possible manual deduction?
Even in France (one of the most taxing country out there with Danemark), on such
sales, there’s an “expense” flat rate of 71% (that means only 29% of your gross
is taken as income, with a minimum of €305, so 1050€ gross) or you can declare
your real expanses.
| | It may be time to go back to craigslist and sell for cash.
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As said in the linked FAQ: “reporting and declaring any income, either personal
or through a business, has always been a requirement when filing your taxes with
the IRS.”
Using cash is not an exception, it’s tax evasion and illegal.
JFYI.
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| | | | | | | Author: | Teup | | Posted: | Jan 19, 2022 11:00 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 66 times | | Topic: | Selling | |
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| In Selling, Bitay15 writes:
| | In Selling, ZSchoonover writes:
It is incredibly unfair. If you buy something at a cost of $1500 and sell it
for $2000, your gain in income is $500. That should be what is reported and taxed.
But that is not how this works. You will show $2000 gain in income and have to
pay taxes on all above the $600 threshold. Only businesses can write off expenses,
we cannot. It may be time to go back to craigslist and sell for cash.
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If it really works like that, that would be very strange indeed. I know that
the Dutch tax agency only counts profit as income in that situation. I know there
are vastly different rules in different countries but you would think that it's
universal maths that private possessions (all taxes paid) being turned back into
money doesn't count as "income"...
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| | | | | | | | | Author: | peregrinator | | Posted: | Jan 19, 2022 11:12 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 72 times | | Topic: | Selling | |
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| In Selling, Teup writes:
| | If it really works like that, that would be very strange indeed. I know that
the Dutch tax agency only counts profit as income in that situation. I know there
are vastly different rules in different countries but you would think that it's
universal maths that private possessions (all taxes paid) being turned back into
money doesn't count as "income"...
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If you sell something you own for less than you paid for it, you don't have
to pay taxes on it, if you sell it for more than you paid for it, you have to
pay taxes on the difference as capital gains:
https://www.1040.com/blog/2019/7/12/selling-stuff-online-taxes-for-etsy-ebay-letgo-and-more
I'd strongly advise hobby sellers in the USA to consult an accountant. I
don't think you would pay income tax on the whole $2,000 for an item you
originally bought for $1,500.
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| | | | | | | | | | | Author: | Bitay15 | | Posted: | Jan 21, 2022 13:41 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 71 times | | Topic: | Selling | |
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| In Selling, peregrinator writes:
| | In Selling, Teup writes:
| | If it really works like that, that would be very strange indeed. I know that
the Dutch tax agency only counts profit as income in that situation. I know there
are vastly different rules in different countries but you would think that it's
universal maths that private possessions (all taxes paid) being turned back into
money doesn't count as "income"...
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If you sell something you own for less than you paid for it, you don't have
to pay taxes on it, if you sell it for more than you paid for it, you have to
pay taxes on the difference as capital gains:
https://www.1040.com/blog/2019/7/12/selling-stuff-online-taxes-for-etsy-ebay-letgo-and-more
I'd strongly advise hobby sellers in the USA to consult an accountant. I
don't think you would pay income tax on the whole $2,000 for an item you
originally bought for $1,500.
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Here is the wording of the new law on the IRS website; "Separate reporting of
these transactions is not required. However, you should follow the return instructions
on the form you are completing to report your gross receipts or sales. You should
report items that qualify as a trade or business expense on the appropriate line
item of Schedules C, E and F." Since most of us are not businesses we will not
get to use the forms for expenses, hence we will have to report the gross amount
as income.
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| | | | | | | | | | | | | Author: | peregrinator | | Posted: | Jan 21, 2022 13:50 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 60 times | | Topic: | Selling | |
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| In Selling, Bitay15 writes:
| | Here is the wording of the new law on the IRS website; "Separate reporting of
these transactions is not required. However, you should follow the return instructions
on the form you are completing to report your gross receipts or sales. You should
report items that qualify as a trade or business expense on the appropriate line
item of Schedules C, E and F." Since most of us are not businesses we will not
get to use the forms for expenses, hence we will have to report the gross amount
as income.
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Again, this is why I strongly advise you to consult with an accountant. This
aspect of the law hasn't changed, by the way. I don't think the law foresees
individuals making more than the occasional sale online.
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| | | | | | | | | | | | | Author: | zorbanj | | Posted: | Jan 21, 2022 14:16 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 64 times | | Topic: | Selling | |
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| Not true.
As peregrinator suggested, please speak to a tax professional. It will be well
worth your time and put you at ease about this.
In Selling, Bitay15 writes:
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Here is the wording of the new law on the IRS website; "Separate reporting of
these transactions is not required. However, you should follow the return instructions
on the form you are completing to report your gross receipts or sales. You should
report items that qualify as a trade or business expense on the appropriate line
item of Schedules C, E and F." Since most of us are not businesses we will not
get to use the forms for expenses, hence we will have to report the gross amount
as income.
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| | | | | | | | | | | | | | | Author: | aboyer | | Posted: | Jan 22, 2022 14:06 | | Subject: | Re: New IRS Reporting Req's for 2022 | | Viewed: | 65 times | | Topic: | Selling | |
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| In Selling, zorbanj writes:
| | Not true.
As peregrinator suggested, please speak to a tax professional. It will be well
worth your time and put you at ease about this.
In Selling, Bitay15 writes:
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Here is the wording of the new law on the IRS website; "Separate reporting of
these transactions is not required. However, you should follow the return instructions
on the form you are completing to report your gross receipts or sales. You should
report items that qualify as a trade or business expense on the appropriate line
item of Schedules C, E and F." Since most of us are not businesses we will not
get to use the forms for expenses, hence we will have to report the gross amount
as income.
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https://www.irs.gov/publications/p535#en_US_2020_publink10004353:
"You can determine gross income from any not-for-profit activity by subtracting
the cost of goods sold from your gross receipts. However, if you determine gross
income by subtracting cost of goods sold from gross receipts, you must do so
consistently, and in a manner that follows generally accepted methods of accounting."
(IANAA. This is from the 2020 publications but everyone agrees that nothing changed
in this area besides the reporting limit.)
I just cancelled all of my scheduling listing on the well-known auction site,
because there's no way on God's green Earth I'm going to calculate
the COGS of the sets I decide to offload from my collection. And I'm certainly
not going to report the gross as income.
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USA, West Virginia
Sweden, Västra Götaland
France, Nouvelle-Aquitaine
Netherlands, Utrecht
