Gunbroker and the $600 reporting?

[jam66]

Does anyone know how Gunbroker is going to report sales if people pay with Money Order?

 

[Rich M]

Can you do that? GB gets a cut.

 

[jam66]

Yes , The buyer gets charged the auction price plus shipping and tax. That amount is sent to via a Money order. You then have a “fee balance” that you pay.


Sent from my iPhone using Tapatalk

 

[Skerhunter]

I thought only the mobile payment apps would have to provide a 1099? It's not GB who has to send out the 1099, it's whoever handles the transaction (i.e. PP).

 

[jam66]

That’s what I’m thinking…

 

[hawkman71]

eBay, for example, has eliminated Paypal for sellers, at least. I tried to list an item and it required my bank account number. (I haven't followed through yet). It all comes back to the covid stimulus bill and the new requirements of reporting annual transactions of $600 or more on as little as one item. I believe the previous limits were $20,000 and/or 200 transactions.

It's not about "taxes". It's about the government wanting every bit of your money. They are inching (leaping) closer and closer towards that.

You're already taxed on your income. Then, you're taxed on the item you bought with that post-tax income. Then, you're taxed if you sell it. Grrr.

Truthfully, we're supposed to report all cash income - even garage sale income where you sold some rusty shovel and a macrame lamp, I guess.

 

[Titan]

This was covered in a previous thread.

GB won't do any reporting. Its just online payment processing companies. "friends and family" payments are not included. You do not necessarily owe tax when you sell items. Most of the time, you are not making money on those sales. If you bought an item for $1,000 and flipped it for $5,000, then yes, technically you owe tax on that gain. Buying a pair of binoculars for $1,000 and selling for $500 will not cause a tax burden.

 

[MThuntr]

Selling items between individuals without intent of making a profit isn't part of this...heck selling a custom rifle usually results in a loss. I mean I have $600 worth of transactions last month but that was part of paying for Christmas AirBnB fees, food, fuel, etc. I'll like have that soon enough just with shared Costco trip purchases

I'm curious to see how many "accountants" and influencers haven't been paying taxes on their OF and cashapp transactions. Those are the ones that probably owe a lofty share of taxes. Heck some of these people are getting 5 figures a month showing off their hoohas. It's hard to claim friends and family transactions with those numbers.

 

[hawkman71]

...Most of the time, you are not making money on those sales. If you bought an item for $1,000 and flipped it for $5,000, then yes, technically you owe tax on that gain. Buying a pair of binoculars for $1,000 and selling for $500 will not cause a tax burden.

Does this mean we'd have to submit purchase and sales receipts to prove such loss or gain?

 

[Titan]

Does this mean we'd have to submit purchase and sales receipts to prove such loss or gain?

That will depend on your preparer and the amount. It might become such a hassle for such a non-issue that most preparers would take your word on the loss. Showing up with a $15,000 1099-k would probably warrant more record checking. In the end, the most important thing would be to keep those records in the case of an audit or be able to prove what you recorded.

This will be a pain for everyone involved. Essentially causing unnecessary workload for all parties involved while looking for those who are cheating the system at a rate that even matters to look into.

 

[txhunter581]

Venmo, PayPal and Zelle must report $600+ in transactions to IRS

Starting Jan. 1, mobile money apps like Venmo, PayPal and Cash App must report annual commercial transactions of $600 or more to the Internal Revenue Service.

www.nbcnews.com

 

[Crowmangler]

Heck some of these people are getting 5 figures a month showing off their hoohas. It's hard to claim friends and family transactions with those numbers.

Unless you're Hunter Biden's niece

 

[RedTimber]

Does this mean we'd have to submit purchase and sales receipts to prove such loss or gain?

You cannot deduct losses on items used for your personal life. The only tax consequence where you would need proof would be a gain from sale which is highly unlikely. Everyone is getting worked up about the 600$ thing, but it is really not that important. It was created and passed to crack down on backdoor channels of income distribution from businesses, not the 350$ you loss when you sold your last pair of Vortex.

The IRS won't ask about your transactions unless you have a significant amount of transactions or a significant amount of money in them and it is extremely unlikely that anyone reading this thread has that kind of PayPal history. In the off case they did, it would simply be a case of showing your email receipt @ purchase to prove basis minus whatever amount you sold at to show legitimate transaction ( that is again NOT DEDUCTIBLE). There is NO tax benefit to loss from sale in your personal life so unless you have tremendous gains from sales in the PX, I wouldn't get very worked up about the new bill and I sure wouldn't report any losses to your accountant bc they'll say "thank you" and then won't use any of the information bc it has no value on your return.

 

[RedTimber]

eBay, for example, has eliminated Paypal for sellers, at least. I tried to list an item and it required my bank account number. (I haven't followed through yet). It all comes back to the covid stimulus bill and the new requirements of reporting annual transactions of $600 or more on as little as one item. I believe the previous limits were $20,000 and/or 200 transactions.

It's not about "taxes". It's about the government wanting every bit of your money. They are inching (leaping) closer and closer towards that.

You're already taxed on your income. Then, you're taxed on the item you bought with that post-tax income. Then, you're taxed if you sell it. Grrr.

Truthfully, we're supposed to report all cash income - even garage sale income where you sold some rusty shovel and a macrame lamp, I guess.

garage sales are not taxable events unless they produce a gain from sale. this would only be the case if the item had 0 value and you received anything above that. Unless you are in the "trade" of 2nd hand sales, losses from a garage sale or any others would be personal losses that would not be deductible for 99% of people.