Giving you a heads up on new tax law for buying and selling

Preston412
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Preston412
Edited Date/Time 2/2/2022 10:52pm
I do not know the fine line, read between the lines BS that is in the law but if you accumulate over $600 in cash app transactions from one app such as Paypal, Venmo, Zelle, etc.... they are required to send you a 1099-K to report to the IRS as income.
I don't know if this affects the friends and family or peer transactions but it does when you select the business transaction for buyer's protection.

This law may be a driving force to look into crypto currency transactions
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swordfish
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swordfish 12/29/2021 8:17am
12/29/2021 8:17am
Preston412 wrote:
I do not know the fine line, read between the lines BS that is in the law but if you accumulate over $600 in cash app...
I do not know the fine line, read between the lines BS that is in the law but if you accumulate over $600 in cash app transactions from one app such as Paypal, Venmo, Zelle, etc.... they are required to send you a 1099-K to report to the IRS as income.
I don't know if this affects the friends and family or peer transactions but it does when you select the business transaction for buyer's protection.

This law may be a driving force to look into crypto currency transactions
Great heads up. At least they are not charging you 15% tax on used items like they do here in Canada. I did notice starting at least a year ago online retailers charging tax even if it’s shipped out of state or country. Rocky Mountain was the first that charged me on an order.
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SeaClassExpert 12/29/2021 10:03am
12/29/2021 10:03am
This is only for the goods and services total.

If you accumulate more than $600 selling using ‘friends and family’ PayPal’ WILL NOT generate a 1099 for you.

I can’t speak for Zelle and Venmo, but I know that is the case for PayPal.

Also fuck PayPal
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downonmonday 12/29/2021 11:22am
12/29/2021 11:22am
Bogus. My wife and I will transfer money to each other for daycare. That definitely goes way beyond $600.
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dang472
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dang472 12/29/2021 11:25am
12/29/2021 11:25am
How the fuck can I be taxed on selling a used item that I already paid full retail tax on when it was purchased new? Our ancestors would be stacking bodies for this shit.
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SeaClassExpert 12/29/2021 1:39pm
12/29/2021 1:39pm
dang472 wrote:
How the fuck can I be taxed on selling a used item that I already paid full retail tax on when it was purchased new? Our...
How the fuck can I be taxed on selling a used item that I already paid full retail tax on when it was purchased new? Our ancestors would be stacking bodies for this shit.

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Grouper
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Grouper 12/29/2021 7:07pm
12/29/2021 7:07pm Edited Date/Time 12/29/2021 7:09pm
I honestly didn't think that was real. wow lol.

Order your checks and stamps now.
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Grouper
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Grouper 12/29/2021 7:13pm
12/29/2021 7:13pm
How do you pay taxes on something that you technically took a loss on though? Serious question, im taxtarded.

For example:
New thor gear: $250.
Sold for $150.

Do this 5 times, so now you paid sales tax on $1250. Total is 1350.
Do you also pay income tax on the $750 you recooped from the sales?
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Cygrace74
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Cygrace74 12/30/2021 6:52am
12/30/2021 6:52am
This has been a thing for two years.. Most people just ignored it until an audit
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JOE_SPROCKETS#1 12/30/2021 7:09am
12/30/2021 7:09am Edited Date/Time 12/30/2021 7:10am
Grouper wrote:
How do you pay taxes on something that you technically took a loss on though? Serious question, im taxtarded. For example: New thor gear: $250. Sold...
How do you pay taxes on something that you technically took a loss on though? Serious question, im taxtarded.

For example:
New thor gear: $250.
Sold for $150.

Do this 5 times, so now you paid sales tax on $1250. Total is 1350.
Do you also pay income tax on the $750 you recooped from the sales?
how you think the used car market operates? a car or truck can change hands many times and sales tax is paid on it every step of the way.... pisses me off
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Polishhammer 12/30/2021 7:36am
12/30/2021 7:36am
Another fine example of taxation without representation!
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GeorgiePorgie 12/30/2021 9:05am
12/30/2021 9:05am
I say we close the ports, commandeer all the imported tea we can find and dump it into the ocean. That will show these bastards!
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Grouper
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Grouper 12/30/2021 12:22pm
12/30/2021 12:22pm
Grouper wrote:
How do you pay taxes on something that you technically took a loss on though? Serious question, im taxtarded. For example: New thor gear: $250. Sold...
How do you pay taxes on something that you technically took a loss on though? Serious question, im taxtarded.

For example:
New thor gear: $250.
Sold for $150.

Do this 5 times, so now you paid sales tax on $1250. Total is 1350.
Do you also pay income tax on the $750 you recooped from the sales?
JOE_SPROCKETS#1 wrote:
how you think the used car market operates? a car or truck can change hands many times and sales tax is paid on it every step...
how you think the used car market operates? a car or truck can change hands many times and sales tax is paid on it every step of the way.... pisses me off
I'm no constitutional scholar but I thought that taxing the same item twice was literally taxation without representation lol.

Merica bruther yeahhhhh -_-
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racerx217
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racerx217 12/30/2021 2:00pm
12/30/2021 2:00pm
dang472 wrote:
How the fuck can I be taxed on selling a used item that I already paid full retail tax on when it was purchased new? Our...
How the fuck can I be taxed on selling a used item that I already paid full retail tax on when it was purchased new? Our ancestors would be stacking bodies for this shit.
Regardless of how they want to try to capture it and if it is or isn't morally right, you have been supposed to be reporting this for years and years. They are just getting smarter now so we will have to also, i don't know how a cost basis offset will work if you keep receipts of when you bought it and how much you lost on it. Very well might turn into a tax write off for the right people.
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dang472
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dang472 12/30/2021 2:14pm
12/30/2021 2:14pm
JOE_SPROCKETS#1 wrote:
how you think the used car market operates? a car or truck can change hands many times and sales tax is paid on it every step...
how you think the used car market operates? a car or truck can change hands many times and sales tax is paid on it every step of the way.... pisses me off
Not even close because the seller of the used car does not report the sale as income and then pays taxes on that. The new buyer of said used vehicle pays the new sales tax.

To all you looters and drug dealers, you’re supposed to be reporting that as income too.

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jordand20
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jordand20 12/30/2021 11:17pm
12/30/2021 11:17pm
Grouper wrote:
I'm no constitutional scholar but I thought that taxing the same item twice was literally taxation without representation lol.

Merica bruther yeahhhhh -_-
Literally, taxation without representation is being taxed by the government you cannot vote for. Since your district is represented in, both, the state, and the federal government, you have representation. This form of taxation is, however, oppressive.
P.S. I'm no constitutional scholar either. But I wouldn't recommend getting carried away with the appeal to authority. It got us to where we are now.
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harescrambled 12/31/2021 8:59am
12/31/2021 8:59am
dang472 wrote:
How the fuck can I be taxed on selling a used item that I already paid full retail tax on when it was purchased new? Our...
How the fuck can I be taxed on selling a used item that I already paid full retail tax on when it was purchased new? Our ancestors would be stacking bodies for this shit.
The seller isn't paying the sales tax...the buyer is. As for reporting to the IRS, if you sell something you paid to obtain, you'd report a gain/loss on your tax return form.
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Jardo
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Jardo 12/31/2021 9:09am
12/31/2021 9:09am
Taxation is theft.
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dang472
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dang472 12/31/2021 9:10am
12/31/2021 9:10am Edited Date/Time 12/31/2021 10:46am
harescrambled wrote:
The seller isn't paying the sales tax...the buyer is. As for reporting to the IRS, if you sell something you paid to obtain, you'd report a...
The seller isn't paying the sales tax...the buyer is. As for reporting to the IRS, if you sell something you paid to obtain, you'd report a gain/loss on your tax return form.
I don’t think you’re following. If I sell my used A-kit suspension for $3,000 and the buyer wants to use “paying for goods and services” with PayPal, PayPal will then send me a 1099 and I’m supposed to file that as additional income. Then I’ll be taxed at my current tax rate. I don’t know of another time in history or circumstance that reporting a sale of a used item between 2 private citizens has been classified as income. Please correct me if this has been done before in the US.

I can only see this being somewhat of an actual issue if I received a tax break from the initial purchase of the $5000 suspension and stated I used it for promotional racing for my business that I report income from.

The IRS should have nothing to do with a used item I paid with my already taxed income and sold it to another citizen. This line of thinking is the reason we have class warfare over capital gains and inheritance tax.
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harescrambled 12/31/2021 10:56am
12/31/2021 10:56am
dang472 wrote:
I don’t think you’re following. If I sell my used A-kit suspension for $3,000 and the buyer wants to use “paying for goods and services” with...
I don’t think you’re following. If I sell my used A-kit suspension for $3,000 and the buyer wants to use “paying for goods and services” with PayPal, PayPal will then send me a 1099 and I’m supposed to file that as additional income. Then I’ll be taxed at my current tax rate. I don’t know of another time in history or circumstance that reporting a sale of a used item between 2 private citizens has been classified as income. Please correct me if this has been done before in the US.

I can only see this being somewhat of an actual issue if I received a tax break from the initial purchase of the $5000 suspension and stated I used it for promotional racing for my business that I report income from.

The IRS should have nothing to do with a used item I paid with my already taxed income and sold it to another citizen. This line of thinking is the reason we have class warfare over capital gains and inheritance tax.
I did follow. Some here are talking about sales tax, which is different from income tax. As for reporting the sale as income, it is. Whether it's a profit or loss is different. To get proper tax treatment you'd have to report the cost basis. The assumption is that we profit from sales. If we profit from sales, we would then pay tax on the profits, not the total amount of the sale.
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dang472
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dang472 12/31/2021 11:24am
12/31/2021 11:24am
harescrambled wrote:
I did follow. Some here are talking about sales tax, which is different from income tax. As for reporting the sale as income, it is. Whether...
I did follow. Some here are talking about sales tax, which is different from income tax. As for reporting the sale as income, it is. Whether it's a profit or loss is different. To get proper tax treatment you'd have to report the cost basis. The assumption is that we profit from sales. If we profit from sales, we would then pay tax on the profits, not the total amount of the sale.
But PayPal isn’t differentiating profit or loss which they cannot without a record of purchase price. They are blanket assuming you’re profiting from every transaction and now it’s up to you to go back and prove you didn’t. I can’t think of many items besides guns and other collectibles that become profitable to sell.
Do we factor inflation into this? If I bought a 69 Camaro for $3500 in 1973, pay to keep it storage, then sell it tomorrow for $32,000, what’s my profit? Again, why the fuck does the IRS have any standing with this? I’m not running this scenario as a business where I’m trying to get tax breaks.
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yz133rider
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yz133rider 12/31/2021 11:25am
12/31/2021 11:25am
harescrambled wrote:
I did follow. Some here are talking about sales tax, which is different from income tax. As for reporting the sale as income, it is. Whether...
I did follow. Some here are talking about sales tax, which is different from income tax. As for reporting the sale as income, it is. Whether it's a profit or loss is different. To get proper tax treatment you'd have to report the cost basis. The assumption is that we profit from sales. If we profit from sales, we would then pay tax on the profits, not the total amount of the sale.
dang472 wrote:
But PayPal isn’t differentiating profit or loss which they cannot without a record of purchase price. They are blanket assuming you’re profiting from every transaction and...
But PayPal isn’t differentiating profit or loss which they cannot without a record of purchase price. They are blanket assuming you’re profiting from every transaction and now it’s up to you to go back and prove you didn’t. I can’t think of many items besides guns and other collectibles that become profitable to sell.
Do we factor inflation into this? If I bought a 69 Camaro for $3500 in 1973, pay to keep it storage, then sell it tomorrow for $32,000, what’s my profit? Again, why the fuck does the IRS have any standing with this? I’m not running this scenario as a business where I’m trying to get tax breaks.
Insane right??
rohleder644
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rohleder644 12/31/2021 11:29am
12/31/2021 11:29am
dang472 wrote:
I don’t think you’re following. If I sell my used A-kit suspension for $3,000 and the buyer wants to use “paying for goods and services” with...
I don’t think you’re following. If I sell my used A-kit suspension for $3,000 and the buyer wants to use “paying for goods and services” with PayPal, PayPal will then send me a 1099 and I’m supposed to file that as additional income. Then I’ll be taxed at my current tax rate. I don’t know of another time in history or circumstance that reporting a sale of a used item between 2 private citizens has been classified as income. Please correct me if this has been done before in the US.

I can only see this being somewhat of an actual issue if I received a tax break from the initial purchase of the $5000 suspension and stated I used it for promotional racing for my business that I report income from.

The IRS should have nothing to do with a used item I paid with my already taxed income and sold it to another citizen. This line of thinking is the reason we have class warfare over capital gains and inheritance tax.
This doesn’t change the taxation at all. It’s always been law that you report any income, including that from a sale between 2 individuals, as income. You’re not paying income tax on the full sale price if you’ve documented the initial purchase, only the capital gains. It’s in your best interest to document all this so you can prove no capital gain. Without that proof, it’s 100% income as far as the government is concerned. It’s a really cool, totally not unnecessarily confusing system.
rohleder644
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rohleder644 12/31/2021 11:38am
12/31/2021 11:38am
dang472 wrote:
But PayPal isn’t differentiating profit or loss which they cannot without a record of purchase price. They are blanket assuming you’re profiting from every transaction and...
But PayPal isn’t differentiating profit or loss which they cannot without a record of purchase price. They are blanket assuming you’re profiting from every transaction and now it’s up to you to go back and prove you didn’t. I can’t think of many items besides guns and other collectibles that become profitable to sell.
Do we factor inflation into this? If I bought a 69 Camaro for $3500 in 1973, pay to keep it storage, then sell it tomorrow for $32,000, what’s my profit? Again, why the fuck does the IRS have any standing with this? I’m not running this scenario as a business where I’m trying to get tax breaks.
PayPal isn’t taxing you. They’re reporting your income generated on their platform. It’s up to you to prove to the IRS that they need to stay the fuck out of your pocketbook. The IRS assumes every red cent that hits your hands, they get a cut of. You, as a taxpayer, play the bullshit game of trying to convince them you shouldn’t have to pay taxes on as many of those red cent’s as is possible.

As far as I know, there’s no addendum made for inflation. I might be totally full of shit. But my understanding is, you’re paying tax on any amount over and above the purchase price, minus costs of sale. Broker fee’s, listing fees, shipping, etc.
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dang472
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dang472 12/31/2021 11:50am
12/31/2021 11:50am
I guess the only difference is that you have large “free” transaction services ratting you out to the government. It’s awfully convenient these same companies are given sweetheart deals from Congress. Remember the $600 transaction reporting provision in the latest bill that thankfully got removed? They wanted your bank to rat you out as well. Maybe some of you will realize this further encroachment of government will keep getting worse if you keep rationalizing it and accepting it.
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Grouper
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Grouper 12/31/2021 1:07pm
12/31/2021 1:07pm
Grouper wrote:
I'm no constitutional scholar but I thought that taxing the same item twice was literally taxation without representation lol.

Merica bruther yeahhhhh -_-
jordand20 wrote:
Literally, taxation without representation is being taxed by the government you cannot vote for. Since your district is represented in, both, the state, and the federal...
Literally, taxation without representation is being taxed by the government you cannot vote for. Since your district is represented in, both, the state, and the federal government, you have representation. This form of taxation is, however, oppressive.
P.S. I'm no constitutional scholar either. But I wouldn't recommend getting carried away with the appeal to authority. It got us to where we are now.
I agree. That's why appeal to authority is an intellectual fallacy. Authority that is corrupt or wrong has no argumentative weight lol.


OH SAY CAN YOU SEEEEEE
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harescrambled 12/31/2021 4:17pm
12/31/2021 4:17pm
dang472 wrote:
I guess the only difference is that you have large “free” transaction services ratting you out to the government. It’s awfully convenient these same companies are...
I guess the only difference is that you have large “free” transaction services ratting you out to the government. It’s awfully convenient these same companies are given sweetheart deals from Congress. Remember the $600 transaction reporting provision in the latest bill that thankfully got removed? They wanted your bank to rat you out as well. Maybe some of you will realize this further encroachment of government will keep getting worse if you keep rationalizing it and accepting it.
They wanted those transactions reported since there's so many people who do not pay the taxes they owe. Many people choose to be paid in cash to avoid the tax man. Easier to hide when there's no documentation
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yak651
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yak651 12/31/2021 5:29pm
12/31/2021 5:29pm
Just pay cash. Bank pays no interest so have $20k in safe at home. Buy and sell and that slush fund stays about even and no tax implications
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dang472
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dang472 12/31/2021 6:01pm
12/31/2021 6:01pm
harescrambled wrote:
They wanted those transactions reported since there's so many people who do not pay the taxes they owe. Many people choose to be paid in cash...
They wanted those transactions reported since there's so many people who do not pay the taxes they owe. Many people choose to be paid in cash to avoid the tax man. Easier to hide when there's no documentation
We all know the reason why they want every transaction reported, the real question is how much more of this are we willing to accept? Will a bartender be willing to wear a camera to document every tip received? Maybe a stripper can have an IRS-approved g-string. Don’t worry, I’m sure the new Covid passports will have all of this in one location for convenience.
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Leeham
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Leeham 12/31/2021 6:02pm
12/31/2021 6:02pm
Sounds like it going to pick up only kinda of era now which sucks.

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