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IRS Delays $600 Tax Reporting Rule for Venmo, Etsy Sellers and Other Digital Wallets

1,810 1,005 December 23, 2022 at 01:44 PM in Free Shipping (2)
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Joined Dec 2008
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tennis8363
12-23-2022 at 05:24 PM.
12-23-2022 at 05:24 PM.
Quote from skyzophrenyk View quoted comment :
Most of these people are selling their own used items at a loss, or receiving payments from friends or family, or getting small amounts of cash for taking a study or doing surveys or winning a prize and don't want the ridiculous complexity of a 1099-K and trying to write off expenses for 5 year old items they don't even have their original receiot for.

If you consider those tax evaders, you might want to see if your tongue is black from all the government boots you've licked.

There is still a $20,000 threshold for people running serious businesses online.
In your "most people" situation, throw together a quick sched C, $0 income and be done.

People can easily cheat the system as a small business. Sell 19K on eBay with separate accounts, another 19K on Amazon, then on Mercari. Heck if you use people living in the same house, someone could easily do 100K, tax free!
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Joined Apr 2009
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DoobieBrother
12-23-2022 at 05:29 PM.
12-23-2022 at 05:29 PM.
Quote from iluvdeals22 View quoted comment :
Selling a pre-owned item on eBay should NEVER be needing tax records
In my case those pre owned things would be collectables and antiques.

Just the $600 traffic on your account is what triggers the Ebay 1099 report. It is up to you if the pistol packing IRS agent at a subsequent audit can intimidate you to comply with his demands.
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HIDDENPga12-23-2022 at 05:34 PM.
Joined Nov 2019
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jazzpianist
12-23-2022 at 05:56 PM.
12-23-2022 at 05:56 PM.
Quote from skyzophrenyk View quoted comment :
Tell that to the IRS when you don't file your 1099-K and they audit you for it. Better yet, have your expense tax attorney tell them, and then pay that attorney and the fines to the IRS and the tax on that money when they tell you that you have insufficient evidence that you don't owe them taxes on that money.

Yes you are right - if I were to be selling on any of the online marketplaces I would have to prove that I'm selling at a loss. I was more speaking as an average consumer who sells the occasional item
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HIDDENDoobieBrother12-23-2022 at 06:57 PM.
Joined Jul 2013
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thelegaldreamteam
12-23-2022 at 07:05 PM.
12-23-2022 at 07:05 PM.
Quote from tennis8363 View quoted comment :
Another year of tax evasion/fraud for many, lol.

Boston Tea Party
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Joined Dec 2004
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LionInTheBay
12-23-2022 at 07:30 PM.

Our community has rated this post as helpful. If you agree, why not thank LionInTheBay

12-23-2022 at 07:30 PM.
Uncle Sam can't account for the trillions of dollars that went missing, but they want to track us for the $600 we sold and make sure we report it. Sounds about right.
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Joined Oct 2003
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Taco
12-23-2022 at 07:49 PM.
12-23-2022 at 07:49 PM.
The problem is $600 overcorrected from $20,000... thing is $20k bar wasn't really out of line in the first place. 20k revenue for someone running a business, assuming a 30% profit, they are net $6k... if they owe 30% of that we're talking $1,800... now at $600- what is that $50? The plan here is to make 10m people file taxes stating that they did indeed sell Grandma's curio cabinet for $800 on ebay, and then explain on a different form that it was not a taxable event?

It sounds like someone who is smarter than the room with a fancy MBA and no experience was the one with a pen in hand...
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Wavy-Nife
12-23-2022 at 07:59 PM.
12-23-2022 at 07:59 PM.
Lol who claims these anyways. Come find me Uncle S
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HIDDENdrufoo12-23-2022 at 08:15 PM.
Joined Apr 2013
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DealsNStuff
12-23-2022 at 08:29 PM.
12-23-2022 at 08:29 PM.
Quote from drufoo View quoted comment :
There is not a tax liability here. Unless you sell your antique coffee table for a profit selling used stuff at a loss isn't going to add anything to your tax bill

Correct, but under the proposed law, you'd receive a 1099 (not from FB but certainly from Poshmark, Ebay, etc...) and be able to prove you sold it at a loss for it to not be counted as income.
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Last edited by DealsNStuff December 23, 2022 at 08:39 PM.
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ak1802
12-23-2022 at 08:55 PM.
12-23-2022 at 08:55 PM.
Quote from drufoo View quoted comment :
There is not a tax liability here. Unless you sell your antique coffee table for a profit selling used stuff at a loss isn't going to add anything to your tax bill

It's just more pain and paperwork for the pencil pushers
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shaddowplay
12-23-2022 at 09:16 PM.
12-23-2022 at 09:16 PM.
I don't want to go after the smaller sellers but I so hated those people gouging on the PS5's….
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cvrefugee
12-23-2022 at 09:30 PM.
12-23-2022 at 09:30 PM.
"The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member or another for a household bill."

https://www.irs.gov/newsroom/irs-...rms-1099-k
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cvrefugee
12-23-2022 at 09:34 PM.
12-23-2022 at 09:34 PM.
Quote from skyzophrenyk View quoted comment :
Most of these people are selling their own used items at a loss, or receiving payments from friends or family, or getting small amounts of cash for taking a study or doing surveys or winning a prize and don't want the ridiculous complexity of a 1099-K and trying to write off expenses for 5 year old items they don't even have their original receiot for.

If you consider those tax evaders, you might want to see if your tongue is black from all the government boots you've licked.

There is still a $20,000 threshold for people running serious businesses online.
Receiving payments from friends or family would have never triggered a 1099-K from Zelle, Venmo, Cash App, PayPal, etc. as long as they weren't sent for "goods and services" or received on a business account (where applicable per app). I see this bit of misinformation all the time from people.
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