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All For Sale threads must have a pic showing the knife being sold with written date listed & your username! - scammers hate this one trick! The rules for The Exchange can be found here. Please read and follow them. Stop using Paypal Friends & Family and follow our best practices to prevent getting ripped off or having a bad deal.
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The BladeForums.com 2024 Traditional Knife is ready to order! See this thread for details: https://www.bladeforums.com/threads/bladeforums-2024-traditional-knife.2003187/
Price is$300$250 ea (shipped within CONUS). If you live outside the US, I will contact you after your order for extra shipping charges.
Order here: https://www.bladeforums.com/help/2024-traditional/ - Order as many as you like, we have plenty.
Bad Paypal 1099
- Thread starter BRab
- Start date
You’re misunderstanding what a deduction is in this case and what income is. Deduction would be like if you make something as a hobby and then sell it, you can’t deduct the materials. That’s the hobby income case. Selling an item at a loss is simply a loss, income there is just zero.You can verify it for yourselves easily. I posted the links for the IRS Publications you can read yourself to confirm this here: https://www.bladeforums.com/threads...anned-from-the-exchange.1826331/post-20919775
You can see the deductions became disallowed in 2018 for hobby income here https://www.google.com/amp/s/turbot...x-tips-for-money-making-hobbies/amp/L89qz1GNj or here https://www.google.com/amp/s/www.ma...e-new-tax-lawbut-dont-give-up-hope-2018-05-14 or google for hobby income deductions 2018, and you'll find a million other articles confirming the change... Or read the Pubs linked above
I am not accountant. I did tax returns for 6 or 7 years. Always good to check with your own accountant or t.p. The inability to deduct from hobby income is directly stated in the Publications, however, so all you have to do is check them. It's not some obscure tax law.
- Joined
- Oct 2, 1998
- Messages
- 43,714
Couple of other things may be worth looking at:
www.1040.com
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www.investopedia.com
File Taxes Online - E-File Federal and State Returns | 1040.com
Taxes for online sales isn’t actually that hard—and some people may not even have to pay taxes at all.
www.1040.com
How Collectibles Are Taxed
The sale of collectibles can lead to a cash windfall. However, proceeds are heavily taxed because collectibles are not considered economic drivers.
It was nice to be able to buy knives to test drive, knowing that if they were not a fit, one could sell them at a slight loss and put the funds towards something else. That is now gone unless you want to do the record keeping and tax filing work, or just pay the taxes as if it is income.
I see this impacting spending on the hobby in general and could even reduce the amount of gold memberships out there. It's a shame.
- Joined
- Oct 18, 2018
- Messages
- 7,563
According to this article, it sounds like the taxes are starting on items sold This year.... In 2022, for paying the tax in 2023
news.bloombergtax.com
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.
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- Apr 11, 2016
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- 21,834
All I know is that I use the H&R Block software, and when I tell it I have a 1099K, it has me fill out Schedule C, which has entries for expenses such as fees, shipping, packing materials, and even gas. I have done this twice so far (2017 and 2020), and so far so good. I will have to do it again for 2021, and plan to do the same thing. Will continue to do the same thing until someone, whether IRS or otherwise, can definitively tell me how to do it differently (within the H&R Block software).
Side O'Beef
Gold Member
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- Feb 23, 2021
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- 511
Yes, whenever they change tax code it takes effect the following year. Mid-year changes would be a shitshow.According to this article, it sounds like the taxes are starting on items sold This year.... In 2022, for paying the tax in 2023
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.
- Joined
- Oct 18, 2018
- Messages
- 7,563
I was worried in fall PP kept wanting me to do stuff since I just went over the amount... I didn't.....
I stopped selling.....wish I had known for sure, I would of sold off More before my gold membership ran out. :/
- Joined
- Apr 11, 2016
- Messages
- 21,834
The model train example in the following excerpt from that article would seem to support how I'm doing it:According to this article, it sounds like the taxes are starting on items sold This year.... In 2022, for paying the tax in 2023
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.
"These Forms 1099-K will not reflect the various deductible expenses associated with that “extra” income such as utilities and depreciation for homeowners, basis in property sold by sellers or the cost of mileage for delivery drivers, all of which must be factored in before any taxable income is determined. For example, a model train collector may have paid $5,000 for model train pieces over several years that they now sell for $8,000, and the marketplace that introduced the seller to the buyer and through which the sale took place may charge the seller a total fee of $800. It may cost the model train seller $200 in postage to send the pieces to its buyers. The Form 1099-K that the seller will receive from the TPSO will report $8,000 in gross proceeds paid. However, the seller’s taxable gain from that sale would only be $2,000. As a result, collectors and other online sellers will need to keep extensive records of their expenses going forward to avoid over-reporting of income and overpayment of tax."
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- 8,245
Oh interesting... So it sounds like for those of us who aren't flippers but still sometimes make money from this that we could just file a Schedule D and simply report the net income as capital gains instead!Couple of other things may be worth looking at:
File Taxes Online - E-File Federal and State Returns | 1040.com
Taxes for online sales isn’t actually that hard—and some people may not even have to pay taxes at all.
How Collectibles Are Taxed
The sale of collectibles can lead to a cash windfall. However, proceeds are heavily taxed because collectibles are not considered economic drivers.
Flea markets tables are pretty cheep. Members could go together on a few tables and may make out pretty good. Some markets get a ton of traffic and it might be worthwhile. I'm done with PayPal as it just doesn't make much sense anymore.
The issue becomes are you a hobbyist / collector or a business and I think only an accountant can really direct you on this one.
Hobby expenses are not supposed to be deductible and not sure how they are delt with on a tax form unless it is possibly "activity not for profit" on Schedule 1 and maybe a few other lines for profits and losses there and on the 1040 form.
But if you are filing a Schedule C, "Profit and Loss from Business", Sole Proprietorship, it implies you are a business and with a business you can deduct expenses (postage, cost of goods sold, packaging materials, mileage, etc....) of course you also should be filing a Schedule SE (Self employment tax / Social Security) and have to deal with inventory.
For right now everyone should be keeping records for 2022 purchases and sale (including expenses just in case) and you have time to find an accountant to guide you one what to do about earlier purchases that may be sold this year before you need to file in 2023.
I would not go by what you read here, we are mainly bouncing around ideas or what works in our particular case and so far none of us are tax experts just relating what has worked for us so far (actually legal or not
).- Joined
- Jul 31, 2017
- Messages
- 1,447
Could you post links to those Toutube CPA/ebay seller videos you mentioned before, please. ThanksThe issue becomes are you a hobbyist / collector or a business and I think only an accountant can really direct you on this one.
Hobby expenses are not supposed to be deductible and not sure how they are delt with on a tax form unless it is possibly "activity not for profit" on Schedule 1 and maybe a few other lines for profits and losses there and on the 1040 form.
But if you are filing a Schedule C, "Profit and Loss from Business", Sole Proprietorship, it implies you are a business and with a business you can deduct expenses (postage, cost of goods sold, packaging materials, mileage, etc....) of course you also should be filing a Schedule SE (Self employment tax / Social Security) and have to deal with inventory.
For right now everyone should be keeping records for 2022 purchases and sale (including expenses just in case) and you have time to find an accountant to guide you one what to do about earlier purchases that may be sold this year before you need to file in 2023.
I would not go by what you read here, we are mainly bouncing around ideas or what works in our particular case and so far none of us are tax experts just relating what has worked for us so far (actually legal or not
For me it's all about the hassle. Selling and shipping is enough of a hassle on it's own without having to keep track of receipts and do extra work when filing taxes. It really sucks the fun out of things. It will likely impact my potential buying too.
I don't think we are just a blind spot either. The government wants to collect money on ALL income or they wouldn't have set the threshold so low. They don't care how much extra work it is for you to report it correctly or for someone else to enforce it because you're paying for that too.