Federal 1099K reporting limits revert back to $20k/ 200 transactions

@Liquidated said:
Legislation signed today under One Beautiful Bill reinstates the $20,000 / 200 transaction 1099K reporting requirements as found prior to 2021.

As many know the IRS had been trying to implement the $600 reporting limit signed 2021 under the American Rescue Plan Act.

This is Federal legislation that requires 3rd party reporting such as PayPal, eBay for business transactions.

Lower State limits can still trigger reporting of 1099K to IRS.

Key words are the lower State limits will apply. This recent legislation only matters if you live in a State where they don't have the lower limit.

Maryland has a $600 threshold so an Ebay seller living in Maryland will still get a 1099-K and this will have to be reported on your Federal taxes too.

Calling @jmlanzaf to tell everyone how we should all be self reporting all additional income anyway!🤣😂

@WQuarterFreddie said:

@Liquidated said:
Legislation signed today under One Beautiful Bill reinstates the $20,000 / 200 transaction 1099K reporting requirements as found prior to 2021.

As many know the IRS had been trying to implement the $600 reporting limit signed 2021 under the American Rescue Plan Act.

This is Federal legislation that requires 3rd party reporting such as PayPal, eBay for business transactions.

Lower State limits can still trigger reporting of 1099K to IRS.

Key words are the lower State limits will apply. This recent legislation only matters if you live in a State where they don't have the lower limit.

Maryland has a $600 threshold so an Ebay seller living in Maryland will still get a 1099-K and this will have to be reported on your Federal taxes too.

Calling @jmlanzaf to tell everyone how we should all be self reporting all additional income anyway!🤣😂

Lol, he loves paying taxes.

@GRANDAM said:
Does anyone know if this is effective for 2025 taxes?

it is not. 1099 incoming

@MsMorrisine said:

@GRANDAM said:
Does anyone know if this is effective for 2025 taxes?

it is not. 1099 incoming

No, I mean the no tax on Social Security.

@Morgan White said:

@jmlanzaf said:

@Morgan White said:

@WQuarterFreddie said:

@Liquidated said:
Legislation signed today under One Beautiful Bill reinstates the $20,000 / 200 transaction 1099K reporting requirements as found prior to 2021.

As many know the IRS had been trying to implement the $600 reporting limit signed 2021 under the American Rescue Plan Act.

This is Federal legislation that requires 3rd party reporting such as PayPal, eBay for business transactions.

Lower State limits can still trigger reporting of 1099K to IRS.

Key words are the lower State limits will apply. This recent legislation only matters if you live in a State where they don't have the lower limit.

Maryland has a $600 threshold so an Ebay seller living in Maryland will still get a 1099-K and this will have to be reported on your Federal taxes too.

Calling @jmlanzaf to tell everyone how we should all be self reporting all additional income anyway!🤣😂

Lol, he loves paying taxes.

No. He simply wants everyone to play fair. Apparently you like liars and cheats.

No, I don't cheat. I also don't feel the need to police everyone else about it either.

And who did i report? Informing people about the laws is not exactly "policing" nor "loving paying taxes". If you'd like to write more fiction, perhaps find a new protagonist.

As far as paying taxes I have never made a dime on selling a coin.
Unfortunately I am more on the retail side. I do believe I have a couple of very good purchases.
I know dealers typically sell on the wholesale side of things leaving room for a fair 10%-15% profit.

OK... hypothetical... I live in Maryland. Let's say I buy a coin for $700. I own it for a little while and then sell it for $600... am I reporting $600 profit on a 1099, or is this a $100 loss?

@lkenefic said:
OK... hypothetical... I live in Maryland. Let's say I buy a coin for $700. I own it for a little while and then sell it for $600... am I reporting $600 profit on a 1099, or is this a $100 loss?

If you sell it on Ebay or any other Third Party platform that processes the payment then you will receive a 1099-K for the total sales dollars. I believe you file a Schedule C tax form where you can deduct expenses. If you have the $700 receipt then you should be ok to use that as a deduction

I am not a tax advisor nor should you follow my advice in anyway.🤣😂

@lkenefic said:
OK... hypothetical... I live in Maryland. Let's say I buy a coin for $700. I own it for a little while and then sell it for $600... am I reporting $600 profit on a 1099, or is this a $100 loss?

It's a $100 loss

@Morgan13 said:
So is it only on the state level or does the schedule C need to be submitted to the Fed and the state if the state requires it? .

May depend on the state. NY simply accepts the data from the 1040. See a tax professional.

@jmlanzaf said:

@Morgan13 said:
So is it only on the state level or does the schedule C need to be submitted to the Fed and the state if the state requires it? .

May depend on the state. NY simply accepts the data from the 1040. See a tax professional. In in MA

I intend to but during this conversation we can toss around the conversation and get a bit of a grasp on this new law.
Or maybe not.

@lkenefic said:

@jmlanzaf said:

@lkenefic said:
OK... hypothetical... I live in Maryland. Let's say I buy a coin for $700. I own it for a little while and then sell it for $600... am I reporting $600 profit on a 1099, or is this a $100 loss?

It's a $100 loss

...assuming I still have that receipt.

How are entire collections handled where I'd give someone $1000 for everything... I suppose a dealer would have to itemize everything and assign a dollar value? I imagine this gets a little tricky around tax time...

There are different accepted inventory strategies. But the individual cost basis would only be an issue during an audit. And the IRS is reasonable about this.

A few years ago, the IRS sent me a bill. I explained the flaws in my accounting. I offered to supply them with a thousand line spread sheet. They told me to just amend the return and supply a short written explanation which they accepted and sent me a (still funny) check for 64 cents.

@JBK said:

@lkenefic said:
OK... hypothetical... I live in Maryland. Let's say I buy a coin for $700. I own it for a little while and then sell it for $600... am I reporting $600 profit on a 1099, or is this a $100 loss?

Hobbyists can't deduct losses, but you do have to report gains. That's one of the things that makes the 1099Ks so insidious. They put you on the map and you have to report income that may not even be taxable. And if you don't have receipts from when you bought the item you might be up a creek when you claim that you didn't make a profit when you sold it. It puts a target on your back.

If you sell on Ebay then you are a " business ".

I am not a tax advisor so don't take my advice. 😂🤣

No, I don't cheat. I also don't feel the need to police everyone else about it either.

Suggesting that jmlanzaf is some sort of tax police simply by pointing out your obligation as a taxpayer - is ludicrous.

Forcing 1099s onto taxpayers is an abuse of taxpayers, but suggesting that anyone skirt the law by not reporting income clearly shows a bias towards cheating.

That's not to say that gov.com has anything but total control in mind, which in itself is totally detestable.

Nobody likes to pay taxes but those same people sure enjoy what those taxes pay for.

@JBK said:

@jmlanzaf said:

@jmski52 said:
No, I don't cheat. I also don't feel the need to police everyone else about it either.

Suggesting that jmlanzaf is some sort of tax police simply by pointing out your obligation as a taxpayer - is ludicrous.

Forcing 1099s onto taxpayers is an abuse of taxpayers, but suggesting that anyone skirt the law by not reporting income clearly shows a bias towards cheating.

That's not to say that gov.com has anything but total control in mind, which in itself is totally detestable.

Thank you. I don't like taxes or paperwork. I just want a level playing field.

Except when it comes to the mint's ordering limits. You're happy to game the system with multiple accounts so you can exceed the one-per-HH limits. 😆

Still a level playing field. Everyone can do what I do. Don't you have friends or relatives? Every coin i get goes to a separate household.

Your apology is accepted.

Ok everyone! Just calm down.🤣😂

Ebay hasn't updated the information yet -

IRS minimum reporting thresholds 2023 2024 2025 2026
Gross payments $20,000 $5,000 $2,500 $600
Transactions 200 N/A N/A N/A

@jmlanzaf said:

@JBK said:

@jmlanzaf said:

@jmski52 said:
No, I don't cheat. I also don't feel the need to police everyone else about it either.

Suggesting that jmlanzaf is some sort of tax police simply by pointing out your obligation as a taxpayer - is ludicrous.

Forcing 1099s onto taxpayers is an abuse of taxpayers, but suggesting that anyone skirt the law by not reporting income clearly shows a bias towards cheating.

That's not to say that gov.com has anything but total control in mind, which in itself is totally detestable.

Thank you. I don't like taxes or paperwork. I just want a level playing field.

Except when it comes to the mint's ordering limits. You're happy to game the system with multiple accounts so you can exceed the one-per-HH limits. 😆

I have NEVER exceeded the one per household limit. All my coins ship to separate households.

But that is cheating the system put in place by the Mint.

Ultimately, those coins are bought for you to resell for a profit.

To be clear, just because anyone can do it that doesn't make it right.

You can't have it both ways. You want a level playing field regarding taxes but admittedly skirt the level playing field the Mint has set for retail buyers. You sir are GUILTY as charged.🤣😂

@JBK said:

@jmlanzaf said:

@JBK said:

@jmlanzaf said:

@JBK said:

@jmlanzaf said:

@jmski52 said:
No, I don't cheat. I also don't feel the need to police everyone else about it either.

Suggesting that jmlanzaf is some sort of tax police simply by pointing out your obligation as a taxpayer - is ludicrous.

Forcing 1099s onto taxpayers is an abuse of taxpayers, but suggesting that anyone skirt the law by not reporting income clearly shows a bias towards cheating.

That's not to say that gov.com has anything but total control in mind, which in itself is totally detestable.

Thank you. I don't like taxes or paperwork. I just want a level playing field.

Except when it comes to the mint's ordering limits. You're happy to game the system with multiple accounts so you can exceed the one-per-HH limits. 😆

Still a level playing field. Everyone can do what I do. Don't you have friends or relatives? Every coin i get goes to a separate household.

Your apology is accepted.

By your analogy cheating on your taxes is OK because everyone can do it if they want to.

You live by a double standard and your convoluted and corrupted moral compass is exposed. What makes it worse is when a pious scold is the one with the inconsistent values.

Your apology us accepted.

Wow.

1. I have obeyed the HHL limit because every coin goes to a separate household. And if you had any friends you could do the same. The Mint does not have a one per person policy, it has a one per household.
2. I didn't even mention anything about taxes and tax cheats on this thread until I was specifically tagged and called to this thread.
3. i have one standard.
4. I report everything including cash payments at garage sales.
5. You might want to see your doctor. There's something evil growing within you.
6. i apologize for nothing on this thread.
7. Feel free to cheat on your taxes, beat your wife, set fire to your neighbor's house. I'm not going to stop you. I've never called the police on anyone nor reported anyone to a governmental agency of any kind. So this entire mischaracterization of me is without foundation.
8. Have a day. I really don't care if it's good or not.

Quoting so it's still here when the mods come in on Monday.

Good. You launched, without provocation, an insulting tirade at me not the other way around.

I believe we have reached the point for @MFeld to enter this discussion with his voice of reason!🤣😂

Since I don't like to interpret legislation I just asked GROK if the roll back is for 2025 and got this response: this change applies to the 2025 tax year and beyond, meaning it will affect 1099-K reporting for transactions starting in 2025.