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Consignment and Tax Question
PNWcollector
Posts: 311 ✭✭✭✭
Question for the board- looking to send some stuff into a consignor to sell, since their fees are similar (or potentially less, depending on how much they for) than eBay fees. Plus I don’t have to deal with the hassle of shipping.
One consignor offers to send payment via check. I don’t expect the check to be more than $10K. Seems like this is a way to sell some stuff without the government getting involved… is there something I’m missing?
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You should expect a 1099
Is there a minimum amount below which the consignor won’t send a 1099? Because I sold some stuff through PWCC four or five years ago (less than $1000) and never got one.
$600 minimum currently for this type of income. It’s lower for other types (that’s why you might get a 1099 for $12 from your bank)
So the consignor is responsible for sending a 1099 to the consignee?
Yes the consignor is responsible to send 1099 to you and 1096 to IRS. If you don’t receive it you’re still responsible for claiming income (as you would if amount was less than $600) though I concede many people likely do not.
Can I get a lol if this helps. I’m on this board for my comedy chops, the tax and legal advice is more of a hobby.
Things have changed since four or five years ago.
Just consigned with 4SC again this year and I will get a 1099 from them.
I thought the $600 limit was rescinded (which was a relatively new requirement) and the actual amount is significantly higher?
Am I mistaken or Maybe that's what I wanted to hear!
sjjs28@comcast.net
Collector of Baseball Hall of Famer's and Stars, 1965 Embossed, 1968 Topps Game and 1969 Topps Decals
Registered Sets: 1965 Embossed, 1968 Topps Game, 1969 Topps Decals
Does anyone know about the big auction houses like REA?
How about PWCC
1948-76 Topps FB Sets
FB & BB HOF Player sets
1948-1993 NY Yankee Team Sets
I thought it was deferred a year at the federal level, but some states have their limit set this low. YMMV.
There is likely a level at which a business is too small to be required to send 1099s, similar to there being a level at which a seller isn't required to collect "foreign" sales tax. I'm sure REA and PWCC are far above that level.
That is not correct, unfortunately
You are likely thinking of this notice
https://www.irs.gov/pub/irs-drop/n-2023-10.pdf
So...
After skimming thru a lot of legal-ese -
I thought I saw that the new threshold for 2023 is $20,000 with no more than 200 transactions (avg of $100 per transaction)
Am I seeing correctly?
sjjs28@comcast.net
Collector of Baseball Hall of Famer's and Stars, 1965 Embossed, 1968 Topps Game and 1969 Topps Decals
Registered Sets: 1965 Embossed, 1968 Topps Game, 1969 Topps Decals
I'm not sure, but I don't think that is new. I think that was the standard all along.
The proposed $600 was such huge drop. I hadn't realized it was postponed. That's good news.
I need to sell some stuff before they make it even lower.
Successful card BST transactions with cbcnow, brogurt, gstarling, Bravesfan 007, and rajah 424.
That surprises me. I'll bet it's often honored in the breach.
The way PWCC is cutting staff, they might not be around in January to send a 1099
Morning,
I am more confused. My understanding was the $20,000 & 200 transactions was to go into effect for the first time in 2022. Then sometime in Oct/Dec of 2022 they said that they didn't have their (IRS) ducks in a row to move forward and that they were postponing implemetation of the new guidelines until 2023.
Now this comes out:
A participating payee, in the case of a third party network transaction, is any person who accepts payment from a TPSO in settlement of such transaction. Section 6050W(d)(1)(A)(ii).
As originally enacted, section 6050W(e) provided that a TPSO is not required to report third party network transactions with respect to a participating payee unless the gross amount that would otherwise be reported exceeds $20,000 and the number of such transactions with that participating payee exceeds 200.
???
YeeHaw!
Neil
Is it and or is it or? I always thought it was or.
Wait, does that mean we are back where we started from? $20k or 200 transactions?
confused
George Brett, Roger Clemens and Tommy Brady.
I guess I was thinking of a situation where a guy owns a barbershop and he displays a friend's artwork, One day a customer comes in and convinces the barber to sell him the painting, and the barber gives the painter the money (with or without taking a commission). I'd be very surprised if the barber would 1099 his friend.
The safest bet is to pay the taxes you owe.
Define, "owe"...
~1776 Absolutist~
Same here...Still Confused!
Thanks
YeeHaw!
Neil
I thought the current reporting threshold was lowered to $600 but delayed until 2023. I'm hoping they bring back the $20,000 threshold or even a $10,000 threshold if we can get the Wash DC folks to act.