10-03-2023 01:18 PM
Looks like eBay is still trying to get this overturned. IRS delayed it for a year because they were not prepared for it last year but I think they are well ready for it now and have posted instructions on how to account for the information provided on the 1099k.
10-06-2023 04:59 PM
@fern*wood wrote:Good luck with this. Have you seen what Congress is busy working on right now?
No No. The question is Have you seen Congress working?
10-06-2023 05:08 PM
I can only say that this requirement has given me cold feet on listing anything online right now. I typically part my mountain bike out after three seasons to build a new one over winter.
This year it's a huge nope
10-06-2023 05:11 PM
@frankenhobbit wrote:I need to dig further on that. I was aware of form 8949, but not aware of the possibility that I could add costs of disposal of the item to the basis, only the costs to acquire. That may be just what I need. It's certainly fair that way.
Thanks for taking the time to put together that reply. It's greatly appreciated!
There are instructions with the IRS Rules on how to account for a loss when you report the income from a 1099K.
Some of what I get out of the recent changes that are geared towards a Hobby Seller who had in the past been allowed to almost operated as a business with all the deductions allowed and they did not have to pay the 15.3% Self Employment Tax. Now many of those deductions are taken away unless you file as a business and pay the additional Self Employment Tax.
Who knows, maybe one day selling Capital Assets will be subject to Self Employment Tax. They have already taken away Interest as being an Investment Income that had a cap of 15% max tax. Now Interest is taxed as regular income and can be taxed from 10% to 37% depending on your other income.
10-06-2023 05:26 PM
@paxilill wrote:I can only say that this requirement has given me cold feet on listing anything online right now. I typically part my mountain bike out after three seasons to build a new one over winter.
This year it's a huge nope
You’re goiNG to deprive yourself of an upgrade for 30 minutes of extra paperwork? That’s too bad.
10-06-2023 05:26 PM
You can read about it yourself on the Web Site of Congress. Take a look.
But is it does not matter. The bill has not made any progress. Look at the numbers, only 25 Co-Sponsors.
There have been several Bills to reduce the $600 requirement over the past couple of years. None of them have enough Co-Sponsors to do anything. Only way something like this will pass is if it is done the same way as the Bill that created the $600 requirement and that is to stick it into a very large spending bill at the last moment so that no one notices it is there.
10-06-2023 05:26 PM - edited 10-06-2023 05:29 PM
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10-06-2023 11:52 PM
@doc-holmes wrote:
@beautifulbeauty2012 wrote:From the Senator:
"On April 18, 2023, I joined Senator Bill Hagerty (R-TN) in reintroducing the Stop the Nosy Obsession with Online Payments, or SNOOP Act (S. 26)....
On April 25, 2023, I joined Senator Tim Scott (R-SC) in cosponsoring the Prohibiting IRS Financial Surveillance Act (S. 453), ...
To rephrase, they want it to remain easy for people to cheat on their taxes.
Evidently they want it to remain easy for the whole underground economy to thrive, replete with tax dodgers, sellers of stolen merchandise, money launderers, drug dealers, human traffickers, foreign nationals working unlawfully, financers of terrorist cells, and general scofflaws.
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10-07-2023 09:12 AM
Oh I know it’s real (and nothing has happened since it was introduced on Jan 23 2023) , it’s just that the long name and acronym sound like a child wrote them, not like a serious bill worthy of being presented before the senate. Makes it hard to take it seriously.
Imagine if they had called HIPAA Stop Nosy Individuals Peeking at Patient’ Info or SNIPPI instead 😂.
10-31-2023 10:59 PM
yes, I've seen Congress working. You can literally watch them on either c-span or youtube . theyhave channels now.
10-31-2023 11:02 PM
making a profit off of selling some personal items is Capital Gain. that tax threshold is pretty high, it's over 20,000 as i recall off the top of my head.
10-31-2023 11:05 PM - edited 10-31-2023 11:06 PM
you are assuming wrong. this isn't about tax cheats. it's about the IRS causing headaches for those who are not tax cheats. it's about surveillance of everyone, and it's not just online sales but every transaction of buying or selling. total violation of our privacy and other rights.
11-01-2023 04:37 AM
For myself the Federal law as it currently stands at $600 carries little relevance whether they change the $ threshold or delay it again for the 2023 tax year. I live in a state that has had a lower, $600, 1099 reporting threshold since 2020 so a change in the Federal law makes little difference. Since I have always paid taxes on revenue/income I found the 1099 to be a nice way to check my own numbers prior to filing my taxes and I have found a couple of differences that were of course my mistake.
I fully suspect that even if the Federal threshold is changed that more states will pass their own 1099 reporting threshold laws just as each state did with regard to the collection of sales tax on ecommerce sales. At least with the Federal thresholds there is consistency across the states since at the present time none of the state laws are below the $600 threshold.
As for the forms, with the software that is available doing the schedule C is pretty simplistic and nothing more complex than what sellers should be doing to determine if they are actually making a profit or taking a loss on something. The only minor glitch I have had is I use accrual accounting for my personal records and is what I declare on my schedule C. The 1099 eBay issues is based on cash accounting and I have had to reconcile those two figures.
This was one of those trains eBay never saw coming when they decided to move to MP in order to get the 2.5% in fees that PayPal was collecting. It no doubt takes resources to track the sellers sales through the year but to compile, generate and remit the 1099's. Had eBay not moved to MP the 1099 issue would be PayPal's to deal with. There are stiff penalties for companies that fail to meet the reporting deadlines to the IRS.
11-01-2023 04:53 AM
If the tax is due then pay it. If im not mistaking it has always been required to report income over 600.00. If you dont like how the gooberment spends your tax dollars then make better choices when you vote.
11-01-2023 04:55 AM
@gamersbaystore wrote:What you stated is not true. There are no taxes due when selling used items from around your house at a loss. Please explain to me the logic in requiring people to file additional tax forms for income that was not taxable to begin with.
You could sell a billion dollars of goods on ebay and there would be no taxes due if you sold them at a loss. You people need to learn what taxable income actually is.
There may not be any taxes due, but you still report the income and prove you don't owe any taxes on it.
11-01-2023 05:12 AM
@themayqueen wrote:you are assuming wrong. this isn't about tax cheats. it's about the IRS causing headaches for those who are not tax cheats. it's about surveillance of everyone, and it's not just online sales but every transaction of buying or selling. total violation of our privacy and other rights.
How is causing headaches for ones that are not tax cheats?
We already report our income and fill out the necessary paperwork.
It's the ones not reporting their income, are the ones that have a problem with it.