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Deleted member 42060
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Basically no other way to avoid paying taxes on things 600 and up. If you wanna list everything $599 and under, then that’s an option . Still if it adds up to $20G you will get the 1099K.
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I read that didn't go through and its back to 10K.Did that one proposal go through? The one about banks having to report deposits over $600 to the feds?
Imagine doing time for evading uncle sam on a lil sneaker flip.
So if I sold something for $x that I paid $x for then Would I have to have original receipts? How does that work since it should only be on profit right?
Cant even work and get a paycheck without the bank reporting in that case. 600 will never fly, too much red tape.Did that one proposal go through? The one about banks having to report deposits over $600 to the feds?
Imagine doing time for evading uncle sam on a lil sneaker flip.
Not sure if it's schedule c or another form
but you should be able to subtract cost of goods for a net taxable amount
Yeah I feel the same way. I have a good amount of old stuff I want to clear out (shoes and other ****) but it’s not really worth much more than I paid (sometimes less than I paid). Really just want to clear up space and get some of my money back at the same time. I should have taken care of it last year but was lazy.Yep, you can do this. And I’ll do it in order to avoid paying taxes. But man—what a ****ing hassle for the average person who just wants to clear out some older items. I have no intention of reselling anything for profit, personally. If I make $$ over what I paid that’s cool, but all I really want to do is sell **** I no longer wear to buy new ****.
And I realize we all should’ve been reporting this income all along. But it just doesn’t feel right paying taxes on stuff I already paid taxes on, that I’m selling to buy more stuff that I’ll pay taxes on. Especially with that low *** $600 threshold. 600 bones FOR A YEAR? Wild.
New Form 1099 Reporting Coming in 2022
Reporting rules are changing for certain businesses beginning in 2022. Debbie Pflieger of EY’s Financial Services Organization, highlights what you need to know about Form 1099-K, Payment Card and Third-Party Network Transactions.news.bloombergtax.com
It passed...
Lol I used to keep my Kane in the car but then I switched to a truck and it seemed kinda pointless (I was also getting old).
Not sure you can file a schedule C without having a registered business, like an llc. I file schedule C but I have an llc and the form asks for your registered business name as well as a code for the type of business you run. I would check with your tax person but I dont think individuals filing a 1040 without an llc are able to deduct cost of goods anywhere on the form. You can itemize deductions and pull out the costs there but its a headache and usually not better than just taking the standard deduction. So it basically means you are on the hook for the full amount of your sales, not just the profit portion.
In reality, a couple thousand on a 1099 is not gonna affect the amount of taxes you owe that much, depends on your other income. That said, if you're worried about it going forward just register an llc for yourself, it will definitely be worth the minimal costs if you're sellling a lot. You can deduct all your selling related expenses and cost of goods, then carry the profit over to your 1040 AND take the standard deduction off of that.
Not sure you can file a schedule C without having a registered business, like an llc. I file schedule C but I have an llc and the form asks for your registered business name as well as a code for the type of business you run. I would check with your tax person but I dont think individuals filing a 1040 without an llc are able to deduct cost of goods anywhere on the form. You can itemize deductions and pull out the costs there but its a headache and usually not better than just taking the standard deduction. So it basically means you are on the hook for the full amount of your sales, not just the profit portion.
In reality, a couple thousand on a 1099 is not gonna affect the amount of taxes you owe that much, depends on your other income. That said, if you're worried about it going forward just register an llc for yourself, it will definitely be worth the minimal costs if you're sellling a lot. You can deduct all your selling related expenses and cost of goods, then carry the profit over to your 1040 AND take the standard deduction off of that.
I think if you’re selling that kind of stuff for cash locally via fb marketplace or Craigslist or whatever then you don’t have to worry about it. It’s the electronic transactions for goods/services where they’ll get you.So if you're not a business and just selling some extra whatever (a microwave, a bike, a tv), and you sell the microwave for 200, the bike for 300 and the tv for 400, does that push you over the $600 and you thus have to report that and pay taxes on it? (if it makes it relevant, lets say you bought the microwave for $50, bike $100, tv $100)
That's what this says right
"Now, as the result of a provision in the American Rescue Plan Act of 2021, if a TPSO—or its electronic payment facilitator, or EPF—makes payments totaling more than $600 in a calendar year to a payee, it will be required to report those payments on a Form 1099-K."
This sounds like the way.. or the closest thing I've come across to any practical solution outside of craigslist and FB. You mentioned selling a lot.. at what point would this be 'worth' it to do??
I have no sincere interest in being a reseller with an actual LLC on top of that but if it helps me recoup and save as much on the front end/tax side of it.. I have to consider this. But I'm not literally running a side business and raking in the dollars all year long lol.
I wasn't sure about that either. Here's what the IRS says about 1099-NECs. I think 1099-Ks would be similar:
- If you're not an employee of the payer, and you're not in a self-employed trade or business, you should report the income on line 8i of Schedule 1 (Form 1040), Additional Income and Adjustments to Income PDF and any allowable expenses on Schedule A (Form 1040), Itemized Deductions. Refer to Not for Profit Activities in Chapter 1 of Publication 535, Business Expenses for allowable nonbusiness expenses.
Looks like if it can be considered a "not for profit activity" you're able to determine the gross income by subtracting cost of goods sold