The IRS and PayPal
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TEAforONE
Posts: 1,006
https://newsroom.paypal-corp.com/2021-11-04-New-US-Tax-Reporting-Requirements-Your-Questions-Answered
Looks like this has been delayed once again. No 1099-k until you hit the $20k mark.
This should help hobbyists remain hobbyists.
Looks like this has been delayed once again. No 1099-k until you hit the $20k mark.
This should help hobbyists remain hobbyists.
See my profile for list of gear.
Comments
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https://newsroom.paypal-corp.com/2021-11-04-New-US-Tax-Reporting-Requirements-Your-Questions-Answered
Looks like this has been delayed once again. No 1099-k until you hit the $20k mark.
This should help hobbyists remain hobbyists.
Some states, like Illinois shut that down. IIRC IL requires a 1099K with over 1K in sales. I learned that the hard way.
This is an old 12/2022 article I had bookmarked.
https://www.hellobonsai.com/blog/how-to-avoid-paypal-1099Salk SoundScape 8's * Audio Research Reference 3 * Bottlehead Eros Phono * Park's Audio Budgie SUT * Krell KSA-250 * Harmonic Technology Pro 9+ * Signature Series Sonore Music Server w/Deux PS * Roon * Gustard R26 DAC / Singxer SU-6 DDC * Heavy Plinth Lenco L75 Idler Drive * AA MG-1 Linear Air Bearing Arm * AT33PTG/II & Denon 103R * Richard Gray 600S * NHT B-12d subs * GIK Acoustic Treatments * Sennheiser HD650 * -
The 600 rule is pure trash and a government over reach
The 20k and 200 transactions makes way more sense- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit. -
Just about everything the government does is over reach.See my profile for list of gear.
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So if they are treating hobbyist as a business, then when you sell something and buy something more expensive is it then considered a loss?
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Losses won't count as taxable income but you can't write off the loss either- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit.
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So if they are treating hobbyist as a business, then when you sell something and buy something more expensive is it then considered a loss?
If you’re looking for logic,our government is the wrong place to look.See my profile for list of gear. -
Losses won't count as taxable income but you can't write off the loss either
Yeah, you'd have to be a business to do that. The pither is as an individual you cannot deduct shipping or ebay fees. You pay tax on the total amount.Salk SoundScape 8's * Audio Research Reference 3 * Bottlehead Eros Phono * Park's Audio Budgie SUT * Krell KSA-250 * Harmonic Technology Pro 9+ * Signature Series Sonore Music Server w/Deux PS * Roon * Gustard R26 DAC / Singxer SU-6 DDC * Heavy Plinth Lenco L75 Idler Drive * AA MG-1 Linear Air Bearing Arm * AT33PTG/II & Denon 103R * Richard Gray 600S * NHT B-12d subs * GIK Acoustic Treatments * Sennheiser HD650 * -
We're all friends and family here.Don't take experimental gene therapies from known eugenicists.
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Losses won't count as taxable income but you can't write off the loss either
I don't think that is correct, they are treating you as a business at that point, if a 1099 is issued you certainly can write off losses. -
Sorry you are correct, it's a 1099k, but if you have a loss then you don't pay anything.
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I guess I'll have to register an audio business and then write off the losses.
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Actually I looked it up, you can use a schedule D form and not pay anything, unless you are a business then a schedule C.
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Let's see if the mods delete this one.
It's a part of a failed policy of the current administration.Political Correctness'.........defined
"A doctrine fostered by a delusional, illogical minority and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a t-u-r-d by the clean end."
President of Club Polk -
So if you work for 100 different people and it's under $600 you don't have to claim the 59,900 if you received 1099's?
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For 2024 the limit is $5000. But any service can report via the 1099k
for any amount. And now that Fednow has become a major player
in bank to bank money transactions, they pretty much can see everything.
And any bank account with $600 in it is reported by banks as well.
They are going after the small guy regardless of what they say.
Ebay is going to get hit hard by this. Selling used cars is about to get
real interesting too. I'm sure moving a couple of grand around is going
to raise a red flag. The war on cash transactions is about to get real.
CBDC is coming soon."The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson -
I guess I'll have to register an audio business and then write off the losses.
Do it. Really.
There are so many tax write-offs that the average person can't take, but a small business can. If they want to go after the small guy, their best bet would be to eliminate small biz exemptions and write-offs.So, are you willing to put forth a little effort or are you happy sitting in your skeptical poo pile?
http://audiomilitia.proboards.com/ -
This has become a real problem for buyers. People either don't understand the rule or are overly cautious. Recently I bought the new amp and the seller didn't want to use PayPal because of this exact reason. I don't blame people as it's a lame rule as people shouldn't be taxed on person to person sales of used personal items.
I even think it's s*h*i*t*t*y that Ebay has to charge sales tax on the sale of used personal items. I just got into buying some more tubes lately (as if I need more) and was surprised the "buy it now's" all charged sales tax. Maybe the auctions don't (but I bet they do). It's actually put me off of buying more stuff on Ebay (which is good). As an aside, I found another stash of tubes I forgot about and some of the tubes I just purchased I already have......oh well. Mostly filling some voids and quads. Still looking for an early 50's CBS 12AX7 black plate (all I find are GE's w/CBS labels). Only made for about a year or two very early (50-51). Has Tall horseshoe getter.
If people stop accepting PayPal, then the buyer has very little recourse should the deal go south or have an issue. Eventually I convinced him to accept PayPal for payment, but 90% of the items (off Ebay) that I see for sale all ask to be paid by check, Venmo, Zelle, or PayPal friends and family and it's to the avoid the ridiculous $600 IRS rule that may or may not ever go into effect.
H9"Appreciation of audio is a completely subjective human experience. Measurements can provide a measure of insight, but are no substitute for human judgment. Why are we looking to reduce a subjective experience to objective criteria anyway? The subtleties of music and audio reproduction are for those who appreciate it. Differentiation by numbers is for those who do not".--Nelson Pass Pass Labs XA25 | EE Avant Pre | EE Mini Max Supreme DAC | MIT Shotgun S1 | Pangea AC14SE MKII | Legend L600 | BlueSound Node 3 - Tubes add soul! -
It's coming. They need $$$ to keep the wheels turning. They are
going to find every side hustle and under the table payment.
And there is a plan to rebuild Ukraine after the war ends.
You're looking at a trillion dollar project. God only knows how
Many domestic spending boondoggle are in the works."The legitimate powers of government extend to such acts only as are injurious to others. But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." --Thomas Jefferson -
You pay tax on everything you buy on eBay. The problem I have with that is I pay a higher tax than I would should I go buy the same item at Best buy here in town. The tax rate for me is I'm sure a Chicago rate of sales tax.
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Some places have no (state) sales tax. Some have no state income tax, either. I am just sayin'.
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You pay tax on everything you buy on eBay. The problem I have with that is I pay a higher tax than I would should I go buy the same item at Best buy here in town. The tax rate for me is I'm sure a Chicago rate of sales tax.
I just don't think we should be taxed on person to person used items. I believe it's a governmental rule and it's a stupid one. Some items can change hands 10-15 times over it's lifetime and charging tax on it every time is wrong on so many levels.
There has to be a better way to collect taxes on those transactions that are truly taxable. Rather than just charging a tax on every single item. It really has limited my Ebay shopping because I ain't paying any more taxes.
Now if you're a retail store and you have an Ebay store to also sell, then I could see charging tax like you would at a store front or virtual store. But if Brock wants to buy a used amp from Joe because Joe got a new amp and then there's a "sales tax", that's pure BS and just a money grab by the gov't.
**not trying to make this political** I think the rule is very misguided and misses the mark by a long shot for what it is trying to do. And that's to catch people who are trying to avoid paying sales tax on an legitimate taxable item.
I also shouldn't have to pay income tax on an item I bought 12 years ago and now sold. The income I earned to buy the item originally was already taxed and now you're saying I'm supposed to declare how much $$$ I made selling my personal items?
H9"Appreciation of audio is a completely subjective human experience. Measurements can provide a measure of insight, but are no substitute for human judgment. Why are we looking to reduce a subjective experience to objective criteria anyway? The subtleties of music and audio reproduction are for those who appreciate it. Differentiation by numbers is for those who do not".--Nelson Pass Pass Labs XA25 | EE Avant Pre | EE Mini Max Supreme DAC | MIT Shotgun S1 | Pangea AC14SE MKII | Legend L600 | BlueSound Node 3 - Tubes add soul! -
Absolutely!!Some items can change hands 10-15 times over it's lifetime and charging tax on it every time is wrong on so many levels
Here in my town they talked up a garage sale tax, can you believe that horse hockey? It got so much flack that city hall shelved the idea. The point they were even thinking about it speaks volumes!! Seriously if they want that tax how about going after the begging at the stop lights, after all that should be considered "income" and rightfully should pay income taxes. -
They just need to back off, period. It's not like they are responsible enough with what they do rob tax us with.
Tom~ In search of accurate reproduction of music. Real sound is my reference and while perfection may not be attainable? If I chase it, I might just catch excellence. ~ -
Power corrupts, absolute power corrupts absolutely.See my profile for list of gear.
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AC Regenerator PS Audio PerfectWave Power Plant 10
Source Lumin U1 Mini into Lampizator Baltic 4 DAC
Pre Cary SLP-05
Power Rogue M180 Dark monos
Mains Salk HT2-TL
Rythmik F12 -
This type of stuff has always been taxable, now they have a paper trail. I do agree it should not be taxed, but it is and has been for a long time.
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Frick those rat ****!
We just need to go back to the barter days… tax that! -
skipshot12 wrote: »Frick those rat ****!
We just need to go back to the barter days… tax that!
I agree, but the powers that be say it is illegal, no paper trail though so good luck with that. I would want to know were they draw the line with that, if I help a friend with his roof and don't expect anything in return, then he helps paint my car months later is it still considered bartering? -
Let's see if the mods delete this one.
It's a part of a failed policy of the current administration.
I'm offended.
Meanwhile, back on Maui. . .
