Don’t forget to report your classified sales to the IRS!

Broomd said:
Complete lunacy. Time for money orders, checks, and good ole cash, guys. I'm not using PP over the $600 threshold. If that's a deal breaker with some guys moving forward with my buying and selling so be it. Then no deal.

Screw them and the Brandon horse they rode in on.
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Its cumulative for the year, not just transactions above $600
 
Afhunter1 said:
I thought this wasn’t passed yet and was supposed to be changed to 10K?

abcnews.go.com

Biden admin backs down on tracking bank accounts with over $600 annual transactions

The Biden administration has backed down on a proposal to collect banking information on accounts with transactions over $600 per year.
abcnews.go.com abcnews.go.com

I know this is older info but I thought this was dead.
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Two different things and banks have been tracking transactions over 10K for years now. I was subject to the 1099 thing last year in VA.
 
Sobrbiker said:
You will not be getting a 1099 like a contractor, it’ll be a 1099-k.
As explained by Forbes:
“ Form 1099-K is a tax form sent to users that may include both taxable and nontaxable income sources. A taxable source of income is included in your income, such as wages, rents, tips, and retirement income. Whereas a nontaxable source is excluded from your income and you will not need to report on your tax return.

Some examples of nontaxable income are:

Money received from a friend as a reimbursement
Money received from a roommate to pay their share of the rent
Money received from a loved one as a gift
Also, if you receive money from selling a personal item at a loss, you are not required to report the amount on your tax return. For example, if you purchased a dress for $100 and sold it for $50, the amount is not taxable.”

So don’t get too chicken little....
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Agreed - although the Forbes article isn’t really a model of accuracy given her loose use of the word “income” in several places. I’m not a fan of the new reporting, but I’m not losing any sleep over it. If you buy a rifle for $1k and sell it for more, you have income. That’s been the rule forever. The new reporting makes it easier to catch you if you don’t report that income on your return. And if you sell that same rifle for $500, sorry, but unless that’s your business, you can’t deduct the loss.
 
fwafwow said:
Agreed - although the Forbes article isn’t really a model of accuracy given her loose use of the word “income” in several places. I’m not a fan of the new reporting, but I’m not losing any sleep over it. If you buy a rifle for $1k and sell it for more, you have income. That’s been the rule forever. The new reporting makes it easier to catch you if you don’t report that income on your return. And if you sell that same rifle for $500, sorry, but unless that’s your business, you can’t deduct the loss.
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But I believe that you can use a loss to offset gains.
 
They go by the TOTAL for the year.
Also in the past PP was not reporting PPFF transactions, but starting in 2022 they may have to.
 
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ETtikka said:
If we are buying/selling on here, and the item is 1000$, can we not just send two different pp transactions for 500$ each??
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It's not per transaction, you will get a 1099 from PayPal etc showing the cumulative total of all transactions for the year.
 
antelopedundee said:
An acquaintance friend tells me that the IRS doesn't even get around to matching 1099s with returns until some time in the summer. I filed using TurboTax last summer and missed reporting some income. Neither the IRS nor my state revenue dept caught it, yet.
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Been there. Done that. It caught up to me 3yrs later. Had to pay a penalty + interest on the 3yrs that pasted.

Maybe they'll miss yours? Or maybe not.
 
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Mak44 said:
Been there. Done that. It caught up to me 3yrs later. Had to pay the penalty + interest on the 3yrs that pasted.

Maybe they'll miss yours? Or maybe not.
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He advised me not to file an amended return until I heard from them. At most it would be a couple hundred dollars. Oddly enough my wife received a small check from the IRS for an "overpayment" from a trust account which was never made. That was for a 2019 return which they said was not due to an audit. Go figure.
 
Next Sleepy Joe will try to tax our bonus & preference points.


Sent from my iPhone using Tapatalk
 
antelopedundee said:
An acquaintance friend tells me that the IRS doesn't even get around to matching 1099s with returns until some time in the summer. I filed using TurboTax last summer and missed reporting some income. Neither the IRS nor my state revenue dept caught it, yet.
Click to expand...

They sent me a letter this year for a capital gain miscalculation in 2018.
 
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