12-31-2021 01:55 PM
If things that are used and your selling them cheaper than you paid for them how do you prove that to the IRS for the 2022 Taxes?
I do not keep my receipts from years ago, and what about Bulk or Lots? I sell boxes of old jewelry or lots of Silver & Gold Scrap. This whole thing is confusing to me. And what is the percentage you pay?
12-31-2021 10:43 PM
And now
The time is near
And so we face
The final curtain...
12-31-2021 10:46 PM
Contact a professional. You'll need the help "this" year.
12-31-2021 11:02 PM
@wildpitchsports wrote:And now
The time is near
And so we face
The final curtain...
I hear fireworks going off. Gosh, I'm going to have a whoopazz New Years Eve!
I will have two glasses of beer (yeah, I know, but live large and all of that).
Getting back to the original topic, when I was clearing out my house of bike parts (the DH and I are a marriage of two gear-heads), I claimed reasonable value, i.e., tried to find as close an equivalent in type and quality of that part as possible, and recorded that (with the name of the equivalent part) as value. Same with the VHS collections I sold earlier. I did end up paying some taxes on all that hoard, but my tax bill was very much reduced by filing the schedule C and claiming all lawful deductions.
Took some research, but not a ton.
12-31-2021 11:09 PM
Happy New Year! I can't drink anymore , it caused me too many issues. lol
12-31-2021 11:17 PM
@wildpitchsports wrote:Happy New Year! I can't drink anymore , it caused me too many issues. lol
I have a friend who gave it up because he tended to get into fights in parking lots and the like after like two beers. Honestly, the guy was in his mid-50s and scrapping in the parking lot of Fred Meyer or somewhere over nothing. I used to tell him he needed to either manage himself or just quit. I think he quit. He never drove drunk but he'd ride his bike in that state (he was on the same bike racing team as myself). Good grief lol. We were pretty close friends and he used to give me gray hair with his antics.
I tend to be very moderate as I actually don't have much of a head for the stuff. A glass of good ale and I'm all fat faced and happy and that's pretty much enough. Now espresso on the other hand...
01-01-2022 06:36 AM
Sorry, but my responsibilities don’t entail succumbing to liberal agendas & supporting those monetarily for frivolous gains, because someone SAID SO!! 👍
01-03-2022 09:23 AM
With that being said, could you possibly elaborate about the 1099k situation?
From what I gather, there’s supposed to be new changes taking place with a lower taxable threshold, correct? Changes entail any sales over $600 in a calendar year will generate a seller receiving a 1099k, so what exactly does that mean:
1) If it’s not in effect yet, when officially will this occur (last I saw on IRS website, a 1099k still states at $20,000 or over 200 transactions)?
2) I’m really unsure, but will you need to submit any receipts of any kind for the goods you sell during tax time?
This 1099k thing is ultimately holding me back from selling because I’m understanding there’s supposed to be a bunch of paperwork involved, but I’m still trying to decipher all of this. Is there any sources which explain how this is all going to work?
Any clarification would be very much appreciated!
Thank you very much!
01-03-2022 09:28 AM
@dillsdprib wrote:With that being said, could you possibly elaborate about the 1099k situation?
From what I gather, there’s supposed to be new changes taking place with a lower taxable threshold, correct? Changes entail any sales over $600 in a calendar year will generate a seller receiving a 1099k, so what exactly does that mean:
1) If it’s not in effect yet, when officially will this occur (last I saw on IRS website, a 1099k still states at $20,000 or over 200 transactions)?
2) I’m really unsure, but will you need to submit any receipts of any kind for the goods you sell during tax time?
This 1099k thing is ultimately holding me back from selling because I’m understanding there’s supposed to be a bunch of paperwork involved, but I’m still trying to decipher all of this. Is there any sources which explain how this is all going to work?Any clarification would be very much appreciated!
Thank you very much!
Actually, there is no new taxable threshold. Only the threshold requiring payment processers to issue 1099k's.
01-03-2022 09:43 AM
@dillsdprib wrote:there’s supposed to be new changes taking place with a lower taxable threshold, correct?
There never has been a taxable threshold, you're supposed to be claiming all your income.
The only that has changed is the lower amount that payment processors have to report to the IRS.
Just because the income doesn't get reported by them, doesn't mean you don't have to report it.
01-05-2022 06:09 PM
🤣
01-05-2022 06:44 PM
@dillsdprib wrote:🤣
Yeah, joke’s on you.
01-06-2022 12:17 AM
@dillsdprib wrote:With that being said, could you possibly elaborate about the 1099k situation?
From what I gather, there’s supposed to be new changes taking place with a lower taxable threshold, correct? Changes entail any sales over $600 in a calendar year will generate a seller receiving a 1099k, so what exactly does that mean:
1) If it’s not in effect yet, when officially will this occur (last I saw on IRS website, a 1099k still states at $20,000 or over 200 transactions)?
2) I’m really unsure, but will you need to submit any receipts of any kind for the goods you sell during tax time?
This 1099k thing is ultimately holding me back from selling because I’m understanding there’s supposed to be a bunch of paperwork involved, but I’m still trying to decipher all of this. Is there any sources which explain how this is all going to work?Any clarification would be very much appreciated!
Thank you very much!
Basically what is changing is the threshold that "triggers" a 1099K in 2022 tax year. It was 200 transactions/20K prior. Now it is just $600 total from a single TP processor, no transaction limit or min. So if you plan on selling over $600 (including sales tax and any applicable shipping by the buyer) you will now receive a 1099K when prior you might not have.
Keep track of what you buy, how much for, what you sold it for etc, etc like a profit and loss sheet. This is something that more than a few sellers in the past never did.
Regardless if you made any money or not, if you do get a 1099K in 2023 for the 2022 tax year be sure to include it with your return with a justification. If you don't include it or explain it, or what have you then you're setting yourself up for an audit.