Taxes

[slymaninblack]

For those of you who don’t know, a bill called the SNOOP BILL has been introduced.

https://www.congress.gov/bill/117th-congress/house-bill/6913/all-info

If you are a small time seller who is selling their own personal items at a loss, you know what a pain it will be to have to explain to the IRS what is and isn’t profit, shipping, fees etc…

Small sellers selling their own personal items to recoup money and taxes they already paid are not a business and should not have to go through all the added tax steps and possibly have to hire a cpa. 

Most of us have day jobs and are paying plenty of taxes. We should not have to explain to Uncle Sam that reselling our kids clothes we already paid for is a loss. SMH

Please spread the word about this and support it. Thanks!

[chapeau-noir]

Headdesk gif.

[pburn]

@slymaninblack wrote:

For those of you who don’t know, a bill called the SNOOP BILL has been introduced.

https://www.congress.gov/bill/117th-congress/house-bill/6913/all-info

If you are a small time seller who is selling their own personal items at a loss, you know what a pain it will be to have to explain to the IRS what is and isn’t profit, shipping, fees etc…

Small sellers selling their own personal items to recoup money and taxes they already paid are not a business and should not have to go through all the added tax steps and possibly have to hire a cpa. 

Most of us have day jobs and are paying plenty of taxes.

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Yeah--those honest, law abiding, loyal American citizens who report their eBay income are real schmucks. 

**facepalm gif**

You do realize, of course, that the bill you linked intends only to repeal the requirement for TPSOs to issue a 1099-K. It does not relieve individuals from reporting income from those entities when they file their tax forms (assuming those individuals are not exempted from filing for some reason). I mean, you get that, right?

"This bill modifies requirements for third party settlement organizations to eliminate their reporting requirement with respect to the transactions of their participating payees unless they have earned more than $20,000 on more than 200 separate transactions in an applicable tax period. A third party settlement organization is the central organization that has the contractual obligation to make payments to participating payees (generally, a merchant or business) in a third party payment network."

[espresso_warehouse · Accepted solution]

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@pburn wrote:

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It does not relieve individuals from reporting income

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Is this yet another one of those posts where you later will pretend to be aware that selling personal items for a loss is not necessary to report?

https://www.findlaw.com/tax/federal-taxes/do-you-need-to-report-your-online-sales-to-the-irs.html

"Online sales of personal, used items do not generally have to be reported."

https://www.1040.com/blog/2019/7/12/selling-stuff-online-taxes-for-etsy-ebay-letgo-and-more/

and so on and so forth.

The OP clearly said 'selling their own personal items'.

[farmalljr]

I'm not in support  of any sort of thing. While I don't fancy more laws, more regulation, we all have a duty to pay our fair share of taxes. If someone thinks reporting is too complicated, then I don't know what to say. This country does not operate on well wishes and demands. It takes money to fund all the functions we expect our governments to perform. 

I pay taxes 5 times a year. I don't get any of it back in the form of a return. Over half of America pays no taxes, and half of America is on some type of government support/help. We have over 30 Trillion in debt. What little tax the "small seller" may pay, isn't a drop in the ocean.  Suggesting they shouldn't pay for the services and benefits they get, is laughable. 

If someone wants to clean the closet out, there are many small scale ways to do it, like a yard sale. 

[espresso_warehouse]

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@farmalljr wrote:

I'm not in support  of any sort of thing. While I don't fancy more laws, more regulation, we all have a duty to pay our fair share of taxes. If someone thinks reporting is too complicated, then I don't know what to say. This country does not operate on well wishes and demands. It takes money to fund all the functions we expect our governments to perform. 

I pay taxes 5 times a year. I don't get any of it back in the form of a return. Over half of America pays no taxes, and half of America is on some type of government support/help. We have over 30 Trillion in debt. What little tax the "small seller" may pay, isn't a drop in the ocean.  Suggesting they shouldn't pay for the services and benefits they get, is laughable. 

If someone wants to clean the closet out, there are many small scale ways to do it, like a yard sale. 

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That's not how it works.

https://www.findlaw.com/tax/federal-taxes/do-you-need-to-report-your-online-sales-to-the-irs.html

"Online sales of personal, used items do not generally have to be reported."

[bashort]

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@farmalljr wrote:

I'm not in support  of any sort of thing. While I don't fancy more laws, more regulation, we all have a duty to pay our fair share of taxes. If someone thinks reporting is too complicated, then I don't know what to say. This country does not operate on well wishes and demands. It takes money to fund all the functions we expect our governments to perform. 

I pay taxes 5 times a year. I don't get any of it back in the form of a return. Over half of America pays no taxes, and half of America is on some type of government support/help. We have over 30 Trillion in debt. What little tax the "small seller" may pay, isn't a drop in the ocean.  Suggesting they shouldn't pay for the services and benefits they get, is laughable. 

If someone wants to clean the closet out, there are many small scale ways to do it, like a yard sale. 

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The amount of money that the US government spends no longer has a relationship to the amount that they collect in taxes so what difference does it make?

They just create how ever much money that they want to spend, they do not even bother with paper and ink any more just a keyboard entry.

[monica-sells]

Not taking sides here....but I find it ironic using the "spreading misinformation" tactic.....

findlaw.com is usually pretty reliable....but that 1040.com is full of disinformation, including

...."Usually, the selling platform you use will collect sales tax and show you a report at the end of the year. The sales tax goes to the state that you run your business from; since you’re operating on the internet, sales tax will go to the state where you live....."

luckily, we don't believe everything we see in the internet

[espresso_warehouse]

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@monica-sells wrote:

Not taking sides here....but I find it ironic using the "spreading misinformation" tactic.....

findlaw.com is usually pretty reliable....but that 1040.com is full of disinformation, including

...."Usually, the selling platform you use will collect sales tax and show you a report at the end of the year. The sales tax goes to the state that you run your business from; since you’re operating on the internet, sales tax will go to the state where you live....."

luckily, we don't believe everything we see in the internet

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Luckily this post has zero to do with sales tax.

If you don't like that link I have a dozen others. Attempting to continually discredit well known information for some other narrative is troubling.

This is not new information and has been the case for years. Ask your CPA and don't attempt to distract with claims about sales tax.

[luckythewinner]

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@farmalljr wrote:

I'm not in support  of any sort of thing. While I don't fancy more laws, more regulation, we all have a duty to pay our fair share of taxes. If someone thinks reporting is too complicated, then I don't know what to say. This country does not operate on well wishes and demands. It takes money to fund all the functions we expect our governments to perform.  

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The IRS has specifically stated that sales that amount to the online equivalent of a "yard sale"  do not need to reported. 

But the IRS doesn't seem to have given any guidance about how to account for a 1099-K that reports income from the online equivalent of a "yard sale" on a tax return. 

So unless someone can explain exactly how one accounts for 1099-K yard sale income on their tax return, perhaps it really is complicated. 

[gatefold]

I agree...always check with a reliable accountant, CPA

[espresso_warehouse]

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@gatefold wrote:

like I said, not taking sides..that example is just pointing out the unreliability of information gathered from internet sources that appear reliable.....

Each individual has to determine their own 'comfort level' with reporting.....that's all

until we see how gov enforcement handles these situations, and we see 'real-life' examples, we can only deal in hypotheticals

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Are you using two accounts here?

It's not hypothetical at all. You are not required to report personal items sold at a loss. This isn't controversial information.

The 1099-k reporting requirements are to track money transfers. Nothing has changed about personal income reporting requirements.

What has changed is you will now need to include any 1099-k you get and zero out the personal items. That's the only confusion at this time. Those items are not taxable.

[farmalljr]

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@espresso_warehouse wrote:

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@farmalljr wrote:

I'm not in support  of any sort of thing. While I don't fancy more laws, more regulation, we all have a duty to pay our fair share of taxes. If someone thinks reporting is too complicated, then I don't know what to say. This country does not operate on well wishes and demands. It takes money to fund all the functions we expect our governments to perform. 

I pay taxes 5 times a year. I don't get any of it back in the form of a return. Over half of America pays no taxes, and half of America is on some type of government support/help. We have over 30 Trillion in debt. What little tax the "small seller" may pay, isn't a drop in the ocean.  Suggesting they shouldn't pay for the services and benefits they get, is laughable. 

If someone wants to clean the closet out, there are many small scale ways to do it, like a yard sale. 

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That's not how it works.

https://www.findlaw.com/tax/federal-taxes/do-you-need-to-report-your-online-sales-to-the-irs.html

"Online sales of personal, used items do not generally have to be reported."

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ANY income has to be reported. That doesn't mean it is taxed. It doesn't matter if you are cleaning the closet, or shoveling driveways for your neighbors. You can site whatever website you want, but the IRS regulations require every taxpayer to report any/all income from ANY source.  Report, being the keyword. Again, doesn't mean it is taxed. As a seller, I am required to report the sales tax, even though I do no receive it and I do not remit the payment of the sales tax. I have to REPORT it though. 

So, yes, that IS how it works. Very few instances where income doesn't have to be recorded, and it's all very minor income, sub 600 dollars. In my locality, even $5 in yard sales income, is required to be reported. The best place to get the information from, is from your taxing authorities, not some website on the internet. These random websites have no duty to report the information accurately. They don't have to face the music for you, if you happen to get caught crossing the law. 

[espresso_warehouse]

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@farmalljr wrote:

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@espresso_warehouse wrote:

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@farmalljr wrote:

I'm not in support  of any sort of thing. While I don't fancy more laws, more regulation, we all have a duty to pay our fair share of taxes. If someone thinks reporting is too complicated, then I don't know what to say. This country does not operate on well wishes and demands. It takes money to fund all the functions we expect our governments to perform. 

I pay taxes 5 times a year. I don't get any of it back in the form of a return. Over half of America pays no taxes, and half of America is on some type of government support/help. We have over 30 Trillion in debt. What little tax the "small seller" may pay, isn't a drop in the ocean.  Suggesting they shouldn't pay for the services and benefits they get, is laughable. 

If someone wants to clean the closet out, there are many small scale ways to do it, like a yard sale. 

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That's not how it works.

https://www.findlaw.com/tax/federal-taxes/do-you-need-to-report-your-online-sales-to-the-irs.html

"Online sales of personal, used items do not generally have to be reported."

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ANY income has to be reported.

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False.

Among other things, there are a large amount of people with income who are not even required to file at all.

I suggest you get a CPA and let them handle it. You are likely not in compliance from what I can gather from this.

[monica-sells]

yes....i usually post on this account when I am listing/working with multiple windows open....

"....What has changed is you will now need to include any 1099-k you get and zero out the personal items. That's the only confusion at this time. Those items are not taxable....."

You can't see that I am agreeing with your assessment?

I am only saying it is hypothetical until someone who has experienced a "review" comes forward and tells us what their experience was. Did the taxing authority 'accept' the deductions we used to reduce the taxable income (gross)...was the "zeroing out" of personal items accepted?

My small retail B&M business was "reviewed in person" (audited) 3 times in 20 years....it is gut wrenching