Sellers, are you concerned about the new IRS $600 reporting threshold?
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All Springer/NP/PCP Air Gun Discussion General
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Air Gun Gate
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dk1677
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Sellers, are you concerned about the new IRS $600 reporting threshold?
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Topic: Sellers, are you concerned about the new IRS $600 reporting threshold? (Read 424 times))
TeddP
Shooter
Posts: 24
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Real Name: Tedd
Sellers, are you concerned about the new IRS $600 reporting threshold?
«
on:
May 22, 2022, 12:04:19 PM »
Payment processors like Paypal, Venmo, credit cards, eBay now report a seller's annual receipts over $600 for merchandise + shipping, to the IRS.
Apparently this is avoided if the buyer has the option to send payment as "family and friends" but then they lose the buyer protection associated with "merchandise".
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USA, IN, Noblesville
KWK
Sharp Shooter
Posts: 590
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Real Name: Karl
Re: Sellers, are you concerned about the new IRS $600 reporting threshold?
«
Reply #1 on:
May 22, 2022, 04:05:19 PM »
You only owe tax on profits. Losses are deductions!
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USA, PA, Camp Hill
fivestar45
Sharp Shooter
Posts: 607
yes
Re: Sellers, are you concerned about the new IRS $600 reporting threshold?
«
Reply #2 on:
May 22, 2022, 04:17:08 PM »
If there is no paperwork to support the sellers original cost....I guess the IRS will figure out how much they will take.
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oldair
Sharp Shooter
Posts: 503
Re: Sellers, are you concerned about the new IRS $600 reporting threshold?
«
Reply #3 on:
May 23, 2022, 10:10:58 AM »
I suggest folks look up the IRS documents regarding reporting of "other income" and "income from hobbies". As I read them, there is no provision for subtracting any costs. Per the rules, if you sell your old furniture, that's "other income". Seems ridiculous and obviously is almost totally ignored, but when a 1099 is reported to the IRS it gets hard to avoid.
Only "business income" allows for reduction by the costs of goods, labor, etc. I wonder how many of those estate-sale pickers selling on ebay will create LLC's?
If I have it wrong, please point me to the correct IRS publication.
Don R.
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Ronno6
GTA Senior Contributor
Posts: 5025
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Real Name: Ron
Re: Sellers, are you concerned about the new IRS $600 reporting threshold?
«
Reply #4 on:
May 23, 2022, 10:40:27 AM »
I had to have my taxes done by a pro last year due to my ebay "hobby" sales.
I had backup for online purchases and store receipts.
I guess it saved me some taxes, but I had to pay him.............
Not real happy, but dollars ahead overall and occupies my time.
Selling airguns will be a bit more tedious from a records standpoint.
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USA, Stone County, MS
You can lead a man to water, but you can't keep him from urinating in it.
TeddP
Shooter
Posts: 24
yes
Real Name: Tedd
Re: Sellers, are you concerned about the new IRS $600 reporting threshold?
«
Reply #5 on:
May 23, 2022, 01:32:51 PM »
I don't want the burden of record-keeping, tracking cost basis, etc. Cash sales are much simpler but not always as profitable or feasible.
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USA, IN, Noblesville
Trucker3573
Sharp Shooter
Posts: 799
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Re: Sellers, are you concerned about the new IRS $600 reporting threshold?
«
Reply #6 on:
May 23, 2022, 03:06:06 PM »
I guess a good reason to sell here or other forums and take money orders or cashiers checks. As far as PayPal goes in this hobby you might as well just use FF. PayPal isn’t whatsoever friendly when it comes to anything in the gun realm. Although airguns are not firearms I would be willing to bet PayPal would not distinguish the difference. You would probably be lucky to get help on a sale.
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USA, MI
Rob M
GTA Senior Contributor
Posts: 6308
Re: Sellers, are you concerned about the new IRS $600 reporting threshold?
«
Reply #7 on:
May 23, 2022, 05:16:38 PM »
if the IRS wasnt looking to collect from the average joe garage sale guy , theyd never have made the threshold 600 dollars.. It would have been 5000 or 10,000 bux .. The 600 dollar rule was implemented to turn the screws on the middle class , who maybe pay or get paid for small transactions electronically.. Theyve done the math , and know this will profitable.
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Louisiana
dan_house
Expert
Posts: 1335
Re: Sellers, are you concerned about the new IRS $600 reporting threshold?
«
Reply #8 on:
May 23, 2022, 06:58:48 PM »
if youve got a 1099 from ebay, PP, etc, that has 3 zeros in the amount box, your best bet is a visit to a good account
yes, itll cost your upfront, but the accountant's knowlsdge of how that works could save you more than you pay to yer Uncle. Keep all your reciepts
In this day and age, you likley need a good accountant anyway
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Sellers, are you concerned about the new IRS $600 reporting threshold?