I think it's good that people who are selling for a profit finally face more pressure to pay the taxes they owe on the profits.
However, I wonder about the cost of compliance and enforcement, and I really think collectibles held for more than a year should be taxed as long-term capital gains instead of as ordinary income. The tax code is a lot more punitive about collectibles than about stocks, for example.
<< <i>I think it's good that people who are selling for a profit finally face more pressure to pay the taxes they owe on the profits.
However, I wonder about the cost of compliance and enforcement, and I really think collectibles held for more than a year should be taxed as long-term capital gains instead of as ordinary income. The tax code is a lot more punitive about collectibles than about stocks, for example. >>
The people who peddle stocks have made certain that would be the case.
<< <i>As a general rule, hobby income is taxable, hobby losses are not deductable. >>
Bingo, if people are not a legal registered business, cost of doing business are not legal deductions. and losses are not deductible.
But all income must be counted !!!! >>
My tax man told me years ago(although it was farm related) that if I did not show a profit 1 year in 5 that I was doing it for a hobby and my losses were not deductible. Tax laws may have changed but they just wanted to hear from me only if I made a profit from my hobby.
"The provision was enacted as part of the Housing Assistance Tax Act of 2008 and is designed to improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete."
"The new law requires banks and other payment settlement entities to report payment card and third-party network transactions with their participating merchants. The IRS emphasized that individual cardholders are unaffected by this requirement, and none of the cardholder’s personal information will be shared with the IRS. "
I don't think this has anything to do with individual reporting. I think it just gives the IRS information about larger sellers who are not declaring income.
One thing that people haven't considered. It will be a lot easier for Paypal to report everyone, rather than figure out who should be reported. So the limitations as described may not be there.
<< <i>Just think of those sellers that people consign with. That seller is going to have to keep good records and probably send out W2s to show the taxable money trails >>
No different than any other sale. You just pay after the sale rather than before. subtract costs from income. simple math. --jerry >>
Those who sell as consignors on eBay are maybe going to have to incur a bunch of extra costs in recordkeeping and postage in order to notify the IRS of gross sales by the consignor. Say I purchase a $200 coin and consign it to you to sell on eBay. You get a winning bid of $300 and your expenses just happen to be $50 so you send me a check for $250. Are you also going to send the IRS documentation that you sent me $250 or are you going just claim the $250 as some sort of unverified expense?
Then again if the large auction houses are not required to report distributions of proceeds for consignors, I doubt eBay sellers will have to either.
<< <i>I've been reporting since 2003 or 2004, so...shrug.
But for others it's just more hope and change to believe in. >>
Well, I've been reporting since 1967. The 1099 Form is a simple form and it's probably something Pay Pal finance gurus should have seen and incorporated early. Reporting income is something I WANT to do. It means I'm making money.
This whole tax issue is such a silly thing. Although, Mr Longacre, ... Would you explain FIN 48 ? I'm curious
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However, I wonder about the cost of compliance and enforcement, and I really think collectibles held for more than a year should be taxed as long-term capital gains instead of as ordinary income. The tax code is a lot more punitive about collectibles than about stocks, for example.
<< <i>I think it's good that people who are selling for a profit finally face more pressure to pay the taxes they owe on the profits.
However, I wonder about the cost of compliance and enforcement, and I really think collectibles held for more than a year should be taxed as long-term capital gains instead of as ordinary income. The tax code is a lot more punitive about collectibles than about stocks, for example. >>
The people who peddle stocks have made certain that would be the case.
But for others it's just more hope and change to believe in.
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<< <i>
<< <i>As a general rule, hobby income is taxable, hobby losses are not deductable. >>
Bingo, if people are not a legal registered business, cost of doing business are not legal deductions.
and losses are not deductible.
But all income must be counted !!!! >>
My tax man told me years ago(although it was farm related) that if I did not show a profit 1 year in 5 that I was doing it for a hobby and my losses were not deductible. Tax laws may have changed but they just wanted to hear from me only if I made a profit from my hobby.
"The provision was enacted as part of the Housing Assistance Tax Act of 2008 and is designed to improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete."
"The new law requires banks and other payment settlement entities to report payment card and third-party network transactions with their participating merchants. The IRS emphasized that individual cardholders are unaffected by this requirement, and none of the cardholder’s personal information will be shared with the IRS. "
I don't think this has anything to do with individual reporting. I think it just gives the IRS information about larger sellers who are not declaring income.
<< <i>
<< <i>Just think of those sellers that people consign with. That seller is going to have to keep good records and probably send out W2s to show the taxable money trails
No different than any other sale. You just pay after the sale rather than before. subtract costs from income. simple math. --jerry >>
Those who sell as consignors on eBay are maybe going to have to incur a bunch of extra costs in recordkeeping and postage in order to notify the IRS of gross sales by the consignor. Say I purchase a $200 coin and consign it to you to sell on eBay. You get a winning bid of $300 and your expenses just happen to be $50 so you send me a check for $250. Are you also going to send the IRS documentation that you sent me $250 or are you going just claim the $250 as some sort of unverified expense?
Then again if the large auction houses are not required to report distributions of proceeds for consignors, I doubt eBay sellers will have to either.
<< <i>I've been reporting since 2003 or 2004, so...shrug.
But for others it's just more hope and change to believe in. >>
Well, I've been reporting since 1967. The 1099 Form is a simple form and it's probably something Pay Pal finance gurus should have seen and incorporated early.
Reporting income is something I WANT to do. It means I'm making money.
This whole tax issue is such a silly thing. Although, Mr Longacre, ... Would you explain FIN 48 ?
I'm curious
Sorry to go off topic.
``https://ebay.us/m/KxolR5