1099K Limit

[cwilk]

I know this subject had been done to death. But the 600 dollar  limit for 1099s  that will go into effect next year is getting close.  I am a hobbyist.  I don't make a profit on most of my transactions.  I also don't want my hobby to complicate my already complicated income taxes.  I also don't want to pay for tax preparation because I'll need to file schedules to write off expenses related to something I'm doing for fun. Finally,   has anybody thought that 600 dollars is less than 12 dollars a week in sales.  12 dollars a week in sales isn't a business.  It isnt even a lemonade stand!  I'm looking for informed opinion.  Is the 600 dollar limit going to be law in 2025 or will there be another delay, or a more reassonible limit put in place?  This has been going round and round since I began Ebaying in 1999.  This is the closest its come to actually being implemented.  Fwiw.  I'm almost at 5k in sales for this year.  I reckon I'll stop trading until next year soon.  Finally.  It's laughable that me opening a box of baseball cards, finding a card I already have, and selling it at a huge loss  triggers a report to the IRS.

[kensgiftshop]

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@cwilk wrote:

Gamer.  The IRS site does say they've increased the threshold, just as you said, not that teyre considering it.  This is one of the least helpful help boards I've ever encountered.  Full of sanctimonious pedants

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Where does it say that?

[dbfolks166mt]

     You need to READ the statement on their website and read the IRS 1099 policy as well. 

[kensgiftshop]

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How is it an assault on Americas poor?

It's for everyone, not just the poor.

I'm poor and report my income every year like I'm supposed to, no matter what the amount is.

[cwilk]

Hold tight.  I'm watching the Schoolhouse Rock,  I'm Just a Bill episode.

[kensgiftshop]

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What facts?

Show us where these facts are that you're talking about.

[dbfolks166mt]

I also read the announcement, we just differ in our interpretation of it.

[gamersbaystore]

I already showed you the facts. I shared a link directly to the IRS website that makes it clear the reporting threshold for 2024 is in fact $5K.

[kensgiftshop]

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@gamersbaystore wrote:

I already showed you the facts. I shared a link directly to the IRS website that makes it clear the reporting threshold for 2024 is in fact $5K.

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"IRS announces delay in Form 1099-K reporting threshold for third party platform payments in 2023; plans for a threshold of $5,000 for 2024 to phase in implementation'"

Maybe you need to go back and read that page.

It says they are planning on, but nothing has changed.

Right now it's $600.

[buyselljack2016]

Plan . A proposed or intended course of action:

A fact is12:

• Something that really exists or has occurred1.
• A true piece of information

[cwilk]

I interpret plans as prepares the way it is written.  I suppose one could interpret plans as anticipates.  We planned a trip to Florida, meaning, we arranged rooms and transportation.  We plan on a trip to Florida in 2024.  We might go, or maybe we might not. It is not particularly clear what they mean, which is a bit of a problem for an agency who relies on clear and precise language.  One might think they'd have it figured out in October.

[inthewoodspam]

Believe what you wish.  I don't understand why a piece of paper (if you get it mailed to you) upsets you so much.  All sales must be reported whether you get one or not.   I guess some feel they are more entitled than others to ignore laws--comes from the top it seems.

[cwilk]

This has been asked of me before.  Why do you care so much?  I prefer to ask this question instead,  Why does the IRS care so much about a little piece of paper?  Both questions are rhetorical.

[cwilk]

And why is it part of a plan that is supposed to provide stimulus to the lowest income Americans?

It bothers me because I see further down the road than you do.  I do not want every aspect of my life tracked, and prodded by the government, especially the IRS.  When Grandma dies and we sell her Hummels on ebay for $650, that should not initiate any sort of communication to the IRS.  You needn't reply.  I know what you're going to say.

[stainlessenginecovers]

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@cwilk wrote:

This has been asked of me before.  Why do you care so much?  I prefer to ask this question instead,  Why does the IRS care so much about a little piece of paper?  Both questions are rhetorical.

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They care because 100's of 1,000's CHEAT on their taxes. When it was $20,000/200 items, do you think anyone that sold $19,000 and 150 items, making a $15,000 profit off that $19000 included it in their Tax Return? 

My guess, 75% did NOT. 

The Governments guess? 75% did NOT. 

That is why they 'lowered' the threshold. 

[kensgiftshop]

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@cwilk wrote:

This has been asked of me before.  Why do you care so much?  I prefer to ask this question instead,  Why does the IRS care so much about a little piece of paper?  Both questions are rhetorical.

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I don't think it's so much they care about a piece of paper, they care about people not reporting all their income like they are supposed to be doing.