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New stimulus tax law?
coolstanley
Posts: 2,463 ✭✭✭✭✭
It looks like a new tax law could be coming where the ebay 20k and 200 transactions goes away and the new limit will now be anything over $600..
https://www.politico.com/news/2021/03/05/gig-workers-coronavirus-relief-bill-losers-473902
Terry Bradshaw was AMAZING!!
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consignor twin rings, activate!
Do consigners send customers 1099's?
Terry Bradshaw was AMAZING!!
Ignore list -Basebal21
i can not speak for all of them, but most do not. as of now.
It's been this way in Mass for a few years now. I moved to selling a lot of cards through facebook groups. Luckily I've built up a good rep most everybody will pay via Venmo or Paypal friends and family. Those are off the books.
Well, I guess they have to recover that 1.9 trillion some how
I have to much S**t; so if you working on sets or are a player/team collector, send me your want list, with conditions desired. Keep in mind I have a another job so please allow me a few days to respond.
In 2020, Ilinois went to 1099's for anything over $1,000.
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Successful transactions on the BST boards with rtimmer, coincoins, gerard, tincup, tjm965, MMR, mission16, dirtygoldman, AUandAG, deadmunny, thedutymon, leadoff4, Kid4HOF03, BRI2327, colebear, mcholke, rpcolettrane, rockdjrw, publius, quik, kalinefan, Allen, JackWESQ, CON40, Griffeyfan2430, blue227, Tiggs2012, ndleo, CDsNuts, ve3rules, doh, MurphDawg, tennessebanker, and gene1978.
be very careful on your paypal doing friends and family. they have gone thru and shut down 1000s of folks doing this the past couple of months. not only that, they are holding any monies for 6 months while deducting their fees both from the buyer and sellers for the past 12 months they deem abusive the the terms of agreement you accepted. this is absolutely no joke and 100% verified. i have a very close personal friend that has his paypal account locked down purely for sending $100k on one transaction via fnf to pay for a card.
more and more is going to be happening through FB groups and face-to-face transactions.
George Brett, Roger Clemens and Tommy Brady.
I wonder if trading will become more common. I hate the thought of paying taxes, because whenever I sell something, I am basically trading it. everything i sell just gets turned around and put back into my PC.
It is easier to sell and then purchase what i want than to search out a trade partner who has what i want and is willing to trade for what I have.
George Brett, Roger Clemens and Tommy Brady.
The $100K was probably above some automatic "threshold" to take a closer look... But in general, yea I can see this happening as PayPal definitely wants their fees.
What always surprises me is that buyers would send as "friends and family" to complete strangers (with no recourse if the seller scams them). I guess if you have a good "rating" then it makes more sense, but how do you get a good rating if you never sold on that platform before???
most people send venmo on instagram. which basically has zero recourse similar to fnf. scammers are outted pretty quick. i sold a 9k card there the other day and guy venmoed me instantly. was shocked. of course, i'm not a scammer. but still. i know i wouldn't have sent w/o protection.
Paypal owns Venmo, in case anyone thought the one hand didn't talk to the other.
I wonder if Ebay and Mercari will take a huge hit to business if this part of the bill gets passed and once people realize over $600 in sales will be reported. My thought is yes, but it might take time. If Ebay could start collecting and paying income tax for sellers on their platform, that would be cool. Maybe if you enter your basis it could calculate taxes on profit from that sale and send a payment over to the IRS? This is 2021, there is no reason taxes, voting, etc can't all be automated by now.
everything will.
ebay, mecari, etsy, airbnb and so forth.
thank god political jargon isn't allowed here.
I cannot tell if this is expected to go into effect in 2021 or 2022 Wouldn't it be a challenge for the platforms to implement this in the middle of the current tax year?
According to the provision in the legislation quoted in this article, it appears that if approved as is, it will take effect for transactions after December 31, 2021.
https://www.ecommercebytes.com/C/abblog/blog.pl?/pl/2021/3/1615153514.html
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
Thanks for the reply. Sounds like working around 200/20k this year might be a smart pursuit
Please contact your personal tax expert for real advice, but even if you don't get a 1099, any earnings from the sale of sportscards should still be declared.
Yes, it pays to keep good records.
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
A new Paypal policy within the last year or so. They don't refund the paypal fees (roughly 3%) on refunds.
Terry Bradshaw was AMAZING!!
Ignore list -Basebal21
Deleted
IBF
stop with the politics. we dont need this thread getting poofed
Thank you @craig44 - Todd
George Brett, Roger Clemens and Tommy Brady.
Since the stimulus package is a done deal now does this make the new selling threshold law or does it still have to be voted on, debated etc. or is it a done deal also.
regardless, just like golf, you use the rules to your advantage. incorporate, apply for a resale cert (so you don't have to pay sales tax), use every tax benefit under the sun for small business. and there's ton of them from traveling to shows, to supplies, to utilities, insurance and the list goes on. just like anything else, it's not what it's worth it's how well you negotiate.
you wouldn't hit your golf ball off the cart path, right? why? because there's a rule stating you don't have to. you certainly can if you are that stupid. this is no different. use your club lengths, it's not that hard to set up.
The final version on the President's desk:
https://www.congress.gov/bill/117th-congress/house-bill/1319/text#toc-HFC2BE0682A5E4F71B689C5F9A98A4109
This does include modification to Section 6050W(e) of the Internal Revenue Code:
“(e) De Minimis Exception For Third Party Settlement Organizations.—A third party settlement organization shall not be required to report any information under subsection (a) with respect to third party network transactions of any participating payee if the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions does not exceed $600.”.
(b) Clarification That Reporting Is Not Required On Transactions Which Are Not For Goods Or Services.—Section 6050W(c)(3) of such Code is amended by inserting “described in subsection (d)(3)(A)(iii)” after “any transaction”.
(c) Effective Date.—
(1) IN GENERAL.—The amendment made by subsection (a) shall apply to returns for calendar years beginning after December 31, 2021.
(2) CLARIFICATION.—The amendment made by subsection (b) shall apply to transactions after the date of the enactment of this Act.
You could read this as a single transaction of $60O or more not a total of sales.
I respectfully disagree. It refers to (a)(2) which says... Each payment settlement entity shall make a return for each calendar year setting forth- (2) the gross amount of the reportable payment transactions with respect to each such participating payee.
I mean, lets be real here, this is just a deterrent. You should already be reporting your profits from sales to the IRS on your tax return. This just makes it harder for people committing a crime by lying on their taxes, to get away with it.
i see no exclusions for auctions houses, correct?
I have a tax law background but have never worked with an auction house in large dollar sales. Do they issue 1099s currently for large volume customers? I would assume so? The new text doesn't seem to subtract or add any particular organizations from additional burdens other than the dollar amounts.
most, if not all, do not at this timeframe.
How many Auction Houses are selling 200+ cards/$20k gross from 1 person in a particular year? I can't imagine there are many. Usually someone would send in 1 or 2 cards of value?
you'd be very, very surprised. one set break destroys that.
So the 20,000 and 200 is good for 2021? And the 600.00 starts January 1 2022?
yes
As others implied, this is not something to fret about. Just to plan for/be smart with. NBD.
2020 = sell, sell, sell
2021 = mmm, maybe
I dont plan on selling anymore if this new tax law goes into effect. I will maybe look for a good consignor in the future if I decide to sell. Or maybe I will just hold on to my stuff for my collection.
Terry Bradshaw was AMAZING!!
Ignore list -Basebal21
Just an FYI, If you are a US taxpayer, it's not in your best interest to post statements like that lol.
No doubt if I were a big fish. But since I barely make minimum wage, I doubt I would be worth their time
Terry Bradshaw was AMAZING!!
Ignore list -Basebal21
In my day job as an attorney for the IRS Office of Chief Counsel, I've seen this type of stuff bite people regardless of income level.
You do you though.
I for one Love and Enjoy paying all of my fair share of taxes to help support this great country!
This guy gets it, play to the audience. Well done!
and i love all the changes at psa right now!
What on earth makes you think consignors would be exempt from this requirement?
Barter transactions are not exempt from taxation. You would still need a 1099-B. I’ve seen this idea in other threads that a sale or disposition isn’t (or shouldn’t be) taxable because the proceeds go back into cards. That is not a position the IRS would agree with.
This really shouldn't be a surprise. Ever since the "internet tax" for buyers kicked in on EVERY purchase big or small, why wouldn't the seller be next. I mean $600 seems a little low, but that's their call.
$600 is the standard break point for employment based 1099s, though it hasn't been indexed in a loooooong time.