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IRS delays (again) reporting for sales this year! Great News...
ScarsdaleCoin
Posts: 5,445 ✭✭✭✭✭
Great news for folks who sell an occasional coin ... also they are raising limit to $5000 from $600
https://www.cbsnews.com/news/irs-delay-600-reporting-form-venmo-paypal-1099k-2024/
Jon Lerner - Scarsdale Coin - www.CoinHelp.com
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The closer they got to implementing this, the more problems they found with the concept?
ANA 50+ year/Life Member (now "Emeritus")
Author: 3rd Edition of the SampleSlabs book, https://sampleslabs.info/
Confused. What does this mean for Ebay sales for this year? Mine are under 5000.00.
Means you're fine. It's still $20K for this year, as it's been forever, and it's scheduled to go down to $5K next year, up from the $600 mandated by Congress. Presumably they'll need some amendment to the law to make this permanent.
Great. Now we don't have to claim a high $ sale to our rich 7 year old children.
Yes. Specifically, they don't really care about $601.
More specifically, they need to develop forms and instructions to make clear to people that they can deduct costs and selling expenses to arrive at the taxable number. They are just not there yet, and aren't ready to deal with tens of millions of 1099-Ks, with people not knowing how to correctly carry them over to their 1040s.
Nothing wrong with the concept, because they do want to capture all the unreported income. They just want to do it in a way that does not overwhelm them.
It is very easy for someone to reach the 600 dollar threshold on eBay. Good to know we are safe for another year.
Positive BST as a seller: Namvet69, Lordmarcovan, Bigjpst, Soldi, mustanggt, CoinHoader, moursund, SufinxHi, al410, JWP
I'll have to reconsider the $500/hr tax attorneys, the tax shelter in the Caymans and/or the incorporations in Delaware.
Just wondering, do you think the IRS will agree with this?
The government got greedy and tried to dip into Ebay / PayPal sales with their ridiculous $600 maximum. After passing this bill, they realized it can't be managed, too many loop holes in private sales.
After all these years my wife still thinks I'm sexy. Every time I walk by she says "What An Ass"
Make Taxation Theft Again
they dodged a bullet with that one. 40+ million claims, would have inundated them. Glad I have another year to get my house in order too.
Instead of the government being so concerned about people making a few bucks from selling things out of their closets, why don't they crack down on all the Senators and Congressmen that owe millions in taxes?
Oh, that's right, it's the same people
After all these years my wife still thinks I'm sexy. Every time I walk by she says "What An Ass"
Whether ebay issues 1099's or not is irrelevant. If you sell stuff, for a loss or a gain, you are required by law to report it on your tax return. So who cares if ebay issues a 1099? It has no relevance to ones legal responsibilities if one resides in the USA. Only tax cheats would think this is great news IMO.
Best, SH
Would have been nice to know on Jan1 instead of Nov20.
I maybe could have sold more junk. As it is I didn't cross the $600 reportable threshold.
Mainly didn't want to deal with paying taxes on old stuff that I never had a receipt for and don't see why someone else should have to pay tax on a used item that has already been taxed once.
The tax collecting body will just waste the money anyway.
Interesting how no one is talking about individual states that already passed the $600 threshold years ago.
This article is discussing the extension from the Feds not the individual state taxes.
Maryland is one of them.....
Tax cheats, lazy people? In my opinion, if you can find a loophole in the laws to avoid paying excessive taxes, that makes you smart.
After all these years my wife still thinks I'm sexy. Every time I walk by she says "What An Ass"
You really are good at sucking the joy out of something.
Sounds like you support the move towards a cashless society where the government can track EVERYTHING.
We are headed there anyway with the younger generation using debit cards for all purchases. Just a matter of time that coins and paper money becomes insignificant and the hobby ceases to exist.
Just me sucking the joy out of our hobby!🤣😂
The word "fairness" is not found in the United States tax code. If you're looking for fairness you need to hop on your Unicorn and ride back to Utopia.
After all these years my wife still thinks I'm sexy. Every time I walk by she says "What An Ass"
True. In fact, it is intentionally "unfair," by design, in order to take disproportionately more from those able to afford more (progressive tax rate table), to reward those with effective lobbyists, and to encourage whatever behavior, e.g., clean energy, retirement savings, capital investment, etc. that Congress deems worth encouraging.
So let's just take "fairness" out of the equation. Congress went here because it's collectively a big pot of money, and they want their piece. Has nothing to do with "fair," otherwise 1099-K would have been a thing. On every dollar. Forever. Kind of like 1099-INTs are for amounts over $10 at banks and investment firms.
The twist here is simply that figuring out tax basis will be a nightmare that cheats will take advantage of, and even honest people will have problems doing accurately. Throwing a ton of IRS agents at investigation and enforcement in order to find the coin @jmlanzaf bought, trace it back to the seller, then audit their return, see they didn't report the sale, and then hit them for the $50 plus interest and penalties they owe, would be a VERY poor and inefficient use of limited IRS resources.
As a result, the IRS has been stalling implementation, and is going to raise the reporting threshold from $600 to $5,000 to make the majority of their small money issues go away, under the theory that all sales have a cost associated with them, and that the uncollected income tax on less than $5,000 in gross sales, after deducting selling expenses, isn't worth pursuing. It won't be "fair." The IRS knows the vast majority of people not receiving 1099-Ks won't be reporting a dime in related income, and they can live with that. @jmlanzaf probably should learn to do the same.
It is my understanding that you have to report gains, but cannot deduct losses. Has this changed? If not, it is not a "fair" system by design.
Correct. If it's a business, you can deduct losses along with all business expenses. But, if you are just casually disposing of random items, as a collector, you are only supposed to report gains.
Given that very few people falling under the $20K threshold do this today, my feeling is that when reporting comes to the masses, you'll be able to net out losses against gains when reporting income, i.e., reporting will be of your gross amount, and won't be item by item. But you won't be able to carry losses forward or back, and won't be able to net them against other income.
This is just a guess, but is consistent with how gambling gains are treated, so I think it's a reasonable assumption.
I would never file a tax return that is not 100% honest. It's not worth the risk. If the IRS finds a problem, they can ask for several years of your records. I could do that but I sure don't want to. Most don't understand just how much time an audit can eat up. I have more fun things to do.