F&F and IRS income limits

tokerblue said:
It's so they "can" get involved in everyone's finances at any time. Doesn't mean they'll spend resources on every single person.
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True..they might not but then again they might? Gambling?

Fun Fact: The IRS does not figure in the effects of inflation.. No adjustments to your cost basis for inflation... I.E..---> You bought a thingamajig for $1000 in 1992 and sale now for $1500. According to the inflation calculator $1000 in 1992 is equal to $2060 today. We have to pay taxes on the $500 we "made" even though we actually lost $560. Aint the gooberment a bunch of rip offs.
 
ToxicBot11 said:
Then why did they set the limit so low at $600 before a 1099K is triggered? If they really weren't concerned about the "average person" then they would set the limit at a more reasonable say $5000 or even $10,000.
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TB11, totally agree! No loopholes for us middle class dogs!
 
If a $600+ knife triggers a 1099K then why are so many sellers demanding F&F for knives well under that mark?
 
You can reach that $600 threshold with one sale. But how do you prove what you paid in an acceptable manner, in IRS terms? I have some old ePuke emails from purchases made in 2017. They don’t retain any info on their website for sales older than Maybe three years. It will be interesting to see how the knife community figures a work around for this. Don’t know where this reporting law started, I suppose the House of Reps, because they control the spending and taxation laws and all fiscal policies.
Shouldn’t they fry some bigger fish than us? I think many of us just want to enjoy the hobby and make our money back and fund new acquisitions? It’s almost a Zero Sum Game, but for us and the Government.
 
People buy pallets of items returned to Amazon. How do they value the resold items since they aren't inventoried on the purchase?
 
I was wondering about itemizing the knives we buy and sell. ePuke keeps some records and PayPal also has some. It will be hard to show gain or loss without a paper trail.
I agree that IRS doesn’t have the agents to keep up with taxes that they currently handle. The chances of getting pinched for a 1099K are probably slim, but they do single people out. It’s anyones guess, but the $ 600 threshold is a joke and it hurts us small time hobbiests and eBay and PayPal as well. When large companies get dinged, they can lobby the congress to get their way, but not us. Really bad tax law here!
 
badcow47 said:
I was wondering about itemizing the knives we buy and sell. ePuke keeps some records and PayPal also has some. It will be hard to show gain or loss without a paper trail.
I agree that IRS doesn’t have the agents to keep up with taxes that they currently handle. The chances of getting pinched for a 1099K are probably slim, but they do single people out. It’s anyones guess, but the $ 600 threshold is a joke and it hurts us small time hobbiests and eBay and PayPal as well. When large companies get dinged, they can lobby the congress to get their way, but not us. Really bad tax law here!
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Of course it's bad tax law. Fortunately some of the large companies are realizing they're getting dinged. I got an e-mail from eBay a few months back talking about the tax reporting changes and asking me to contact my legislators to oppose it.
 
If you ignore the 1099k I think you will certainly hear from the IRS. If you file it is unlikely they will ask for verification, but if they did it could be a big problem if you can't provide the verification. Hard to quess how hardcore the agents are going to be on hobby sales( if you lack full documentation). Comes down to how lucky or unlucky you feel. For most of you, it is likely you could put enough together from PP records.
 
It is a bad tax law. The returns from collections will be pittance compared to the effort required to audit and confirm. I could see a $4,000.00 or even a $3,000.00 ceiling - which still wouldn't keep many of us from complaining, but $600.00 is just idiotic.
Still, I maintain, easy enough to keep your purchase and sale records, including S&H charges, and prove that you aren't making profit. File the 1099k as P Peter Hartwig writes and be reasonably assured that the IRS will never ever come after you if that is your ONLY issue. I do believe this limit will, at the least, be increased in the next few years. Meanwhile, it's a nuisance absolutely - but easy enough to win at this game.

I am more frustrated by so many sellers here and on other forums, using this as an excuse to not use G&S, but in fact to add extra & above the PP fee to the cost of a sale item and/or insist on the buyer using F&F at the expense of the buyer assurance. I think this just plays into the hands of the scammers. My 2¢.
 
I'm not the brightest crayon in the box when it comes to these tax and accounting issues. I have a question that I don't think has been discussed yet. As I understand it, Ebay is also going to be sending out 1099 forms for sales made in 2022 in excess of $600. Here's my question:

In 2022, if I sell $590 worth of items using Paypal Goods & Services and $590 worth of items on Ebay, I assume that I won't get a 1099 from either one of them. Is my assumption correct? Serious question.
 
Pretty certain that you are correct Rick, Railsplitter Railsplitter .

EDIT to add ~

Established in 1998 as Confinity, PayPal went public through an IPO in 2002. It became a wholly owned subsidiary of eBay later that year, valued at $1.5 billion. In 2015 eBay spun off PayPal to its shareholders, and PayPal became an independent company again.

IF PP was still an eBay company I think the answer could be different. I do not have any certainty about any of my reply here but making an assumption based on logic. Yes, that is a nonsequitur. ;)
 
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my experience. with unexpected 1099s = irs sends a letter saying they recieved a 1099 and have recalculated my taxes and if i have a problem with it, they will gladly look over my books to help me find the problem.

i think more of these letters my be going out

irs they may not have the employees today but the have computers that are getting better everyday, programs and algorithms, and storage. with the pace of technology, and required 3-7yrs record keeping......

i mostly am trying to trade these days. would "trading" for "collectable" currency delivered from the bank be considered ok?
 
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