The IRS is after us when we sell a bass?

[Jerry J]

From what I'm reading, according to Ebay...

Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales. (2022 changes to eBay and your 1099-K).

So if I sell a bass, or cab and use ebay, Paypal... I will get a 1099 at the end of the year. That is going to make tax time a nightmare next year.

 

[ddnidd1]

New Form 1099 Reporting Coming in 2022

 

[Mushroo]

You've actually always owed this capital gains tax. Those collectable Beanie Babies you sold in the 90s? You were supposed to declare that on your taxes. The IRS is just closing the loophole, so fewer people evade their capital gain tax burdens.

 

[Jrussblues]

Well that sucks

 

[waver]

You only owe tax if you make a profit on the sale

 

[Jerry J]

You've actually always owed this capital gains tax. Those collectable Beanie Babies you sold in the 90s? You were supposed to declare that on your taxes. The IRS is just closing the loophole, so fewer people evade their capital gain tax burdens.

The reason they did this, is to fund the COVID Recovery Act. Remember those $1,400 checks we got? This pays for that. Oh, did you think that was free money?

All they are doing is stepping up enforcement on a tax you've always owed, to fund a specific act of legislation. (If I remember my "Schoolhouse Rock," in order to introduce a bill, it has to contain a clause how it will be paid for.)

And I, for some stupid reason, thought Musk, Gates and Bezos were going to cover that.

 

[LBS-bass]

You've actually always owed this capital gains tax. Those collectable Beanie Babies you sold in the 90s? You were supposed to declare that on your taxes. The IRS is just closing the loophole, so fewer people evade their capital gain tax burdens.

The reason they did this, is to fund the COVID Recovery Act. Remember those $1,400 checks we got? This pays for that. Oh, did you think that was free money?

All they are doing is stepping up enforcement on a tax you've always owed, to fund a specific act of legislation. (If I remember my "Schoolhouse Rock," in order to introduce a bill, it has to contain a clause how it will be paid for.)

Yeah, what he said. It's income. It's always been income. It's just that the IRS is finally catching up to some of the online sales, several decades late.

 

[Jeremy Crockett]

From what I'm reading, according to Ebay...

Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales. (2022 changes to eBay and your 1099-K).

So if I sell a bass, or cab and use ebay, Paypal... I will get a 1099 at the end of the year. That is going to make tax time a nightmare next year.

And it's only going to get better!

 

[blacktocomm]

It’s also Venmo, Cash app, really any electronic payment processor. I know if I’m selling anything in the near future it will be a cash only deal. The government gets too much money from me as it is.

 

[bolophonic]

I stopped selling on all of those mega-conglomerate sites years ago. I do my transactions in cash if I don’t want the government to know about it. Personally, I believe that nickel and diming the common man by closing loopholes on small businesses instead of giant corporations is a mistake.

 

[Gorn]

Taxes suck, but infrastructure is pretty good.

 

[pingvuiini]

I'm just a bill.
Yes, I'm only a bill.
And I'm sitting here on Capitol Hill.

 

[Jeff Elkins]

You've actually always owed this capital gains tax. Those collectable Beanie Babies you sold in the 90s? You were supposed to declare that on your taxes. The IRS is just closing the loophole, so fewer people evade their capital gain tax burdens.

Correct about the always-was part. I remember researching that early in my consulting career.

But the actual internet sales tax collection started in 2018. Nothing to do with Covid.

Random source: https://worldpopulationreview.com/state-rankings/states-with-internet-sales-tax

 

[Ric5]

From what I'm reading, according to Ebay...

Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales. (2022 changes to eBay and your 1099-K).

So if I sell a bass, or cab and use ebay, Paypal... I will get a 1099 at the end of the year. That is going to make tax time a nightmare next year.

another step towards hell

 

[SLPimp]

There are ways but we can't talk about them here.

 

[tpaul]

Ahem *cashier's check* ahem

 

[Lammchop93]

Start documenting what you buy and sell gear for, incase you get audited.

 

[Surely_Bassy]

Correct about the always-was part. I remember researching that early in my consulting career.

But the actual internet sales tax collection started in 2018. Nothing to do with Covid.

Random source: https://worldpopulationreview.com/state-rankings/states-with-internet-sales-tax

Thanks for posting this—I could swear I’ve gotten a 1099 from an online marketplace in the past.

EDIT: Although, I’m not sure this is the exact same thing as what I paid in the past—or maybe the threshold has just decreased to $600…?

 

[john_g]

Taxes suck, but infrastructure is pretty good.

6 one hour breaks a day at Wawa with 8 of my worker buddies while working on that infrastructure is even better

 

[Thundar]

Ahem *cashier's check* ahem

I remember those ... the early days of Eb@y before PayPal...you had to wait a week to see if you were gonna get paid for your auctions