View Full Version : Reminder: 1099-K Reporting Change Goes into Effect Jan 1, 2022
platoonDaddy
12-27-21, 16:12
Cut & pasted from another forum with OK from OP
Buried deep and not reported until after the Covid Relief law passed is a change that reduces the third-party payment processing reporting threshold for the IRS 1099K. Through the end of this year it is $20,000 and 200 transactions per calendar year. Starting Jan 1, 2022 the threshold will be $600 per calendar year with no transaction threshold if you use a service like PayPal, Zelle, Venmo, Square, Stripe, eBay, Etsy, etc.
So, over the course of a year, even if you just hold a yard sale, sell some used tools after cleaning out the garage, offload some old furniture... if the total for the year you were paid via one of these electronic payment processors exceeds $600 then hopefully you have the receipts for everything you sold so you can offset that reported "income" from your sales.
What this means for you now is that for everything you purchase, if you think you might sell it one day, save the receipt.
If EB decides to 1099 me that's fine. My purchases then become deductions and they far outweigh my sales. Amazon 1099'd me a year or so ago and I did the same thing.
What this means for you now is that for everything you purchase, if you think you might sell it one day, Make sure they pay in CASH (or a Money Order if you have no other choice).
Fixed it for you.
newtriumph
12-27-21, 21:59
Fixed it for you.
You can’t prove you have basis in what you sell if you have no receipt and pay cash. I think that’s why he’s saying you should keep your receipt?
Reason being if you sell something that was bought for personal use for a net gain, the gain is taxable but if you sell a personal use item for a loss you get no deduction (but at least you won’t have tax on it). You cannot net these out either.
Thanks much for the heads-up, OP.
sidewaysil80
12-28-21, 08:28
What if everything is paid through friends/family?
The_War_Wagon
12-28-21, 09:39
If EB decides to 1099 me that's fine. My purchases then become deductions and they far outweigh my sales. Amazon 1099'd me a year or so ago and I did the same thing.
Damn straight! EVERYTHING is deductible with a receipt (my motto!)
My fiancé and I zelle each other money all the time for big purchases, rent, etc. How is that taxable?
Adrenaline_6
12-28-21, 13:35
Next calendar year? I recently sold an item via Paypal that was $700 and Paypal made me confirm tax status in order for the transfer to occur.
newtriumph
12-28-21, 15:52
My fiancé and I zelle each other money all the time for big purchases, rent, etc. How is that taxable?
It's not taxable. It may be reportable.
FromMyColdDeadHand
12-28-21, 17:30
My fiancé and I zelle each other money all the time for big purchases, rent, etc. How is that taxable?
And if all the money flows to her, your “fiancé“ may get a new job designation by the IRS.
And receipts aren’t going to help very much if inflation keeps on going up.
Damn straight! EVERYTHING is deductible with a receipt (my motto!)
If anyone is doing enough sales online to get 1099'd, they need an EIN number today. When your deductions are sufficient that they result in a bigger return from your withholding on your regular job, then you are doing something right.
PatrioticDisorder
12-28-21, 19:02
This is going to destroy online market places like the equipment exchange. There is also going to be a lot of pissed off people in another year, many of whom voted for these morons. I suspect the net effect of this pain in the ass will be more red pilled voters. I won’t sell a damn thing online until this shit comes to an end, not worth the hassle.
Our politicians, government employees and the military are the enemies of the taxpayers in the U.S. they have bankrupted the U.S. and stole our liberties. Will retribution ever be served?
This is going to destroy online market places like the equipment exchange. There is also going to be a lot of pissed off people in another year, many of whom voted for these morons. I suspect the net effect of this pain in the ass will be more red pilled voters. I won’t sell a damn thing online until this shit comes to an end, not worth the hassle.
money orders will be back in vogue
newtriumph
12-28-21, 20:48
Our politicians, government employees and the military are the enemies of the taxpayers in the U.S. they have bankrupted the U.S. and stole our liberties. Will retribution ever be served?
When did this start do you think? When if ever was the U.S. doing it right?
racist people here wear your mask get your shots I have 7x its awesome :) OH and BUILD BACK BETTER
Yeah the insanity of this of course the dems control etc…
money orders will be back in vogue
They never went away for those of us that like to avoid the bs of the 'digital money' trails.
racist people here wear your mask get your shots I have 7x its awesome :) OH and BUILD BACK BETTER
Yeah the insanity of this of course the dems control etc…
I was trying for monthly jabs so I could be 'more protected' than everyone else but those idiots at the Rite Aid started to remember me after the third time or so and I had to start going to the Walgreens.
Really upsets me that as great of a country as America is that we do not have that shit in an oral form that is mixed in with our regular water supply and comes right out of our home faucets when we turn them to open.
This is going to destroy online market places like the equipment exchange. There is also going to be a lot of pissed off people in another year, many of whom voted for these morons. I suspect the net effect of this pain in the ass will be more red pilled voters. I won’t sell a damn thing online until this shit comes to an end, not worth the hassle.
I would guess it is by design. The govt does not benefit from sales on the secondary market and they are already spending the money they expect to raise with a US VAT.
Online electronic money transfers between individuals also drives increased racial inequity.
Andy
Cash or crypto when buying and selling between private parties. .gov can get stuffed.
ETA: It is actual tax law that if your child is kidnapped for any length of time you can only take half of your annual deduction. Who the F comes up with shit like this?
robbins290
12-29-21, 07:06
Forgive my stupidity, but will this affect checking accounts? Like if I sell a rifle for $700 and I deposit the cash into my checking account. Will that flag the 1099-k?
newtriumph
12-29-21, 11:14
Forgive my stupidity, but will this affect checking accounts? Like if I sell a rifle for $700 and I deposit the cash into my checking account. Will that flag the 1099-k?
No it won’t create a 1099 - and it won’t be a taxable event unless you paid less than $700 for what you sold.
Averageman
12-29-21, 11:39
Face to Face transactions with known buyers?
Hmmm. Wonder if the “friends/family” designated transactions will be treated differently.
Sent from my iPhone using Tapatalk
Hmmm. Wonder if the “friends/family” designated transactions will be treated differently.
Sent from my iPhone using Tapatalk
Jeez man, I'm practically amish and even I have a crypto account. Who the hell uses PayPal anymore?
newtriumph
12-29-21, 22:30
Jeez man, I'm practically amish and even I have a crypto account. Who the hell uses PayPal anymore?
Every purchase you make with your crypto is a taxable event. Non reporting is considered tax evasion.
Every purchase you make with your crypto is a taxable event. Non reporting is considered tax evasion.
Maybe, maybe not. Private sale of second hand goods I ain't real sure about. Thing is though, who's to know. It's not traceable. Gotta have evidence of a transaction to tax it or charge for evasion.
Just so any feds lookin knows, I'm talking out my ass. Don't know nuttin bout no crypto. ;)
newtriumph
12-30-21, 00:46
Maybe, maybe not. Private sale of second hand goods I ain't real sure about. Thing is though, who's to know. It's not traceable. Gotta have evidence of a transaction to tax it or charge for evasion.
Just so any feds lookin knows, I'm talking out my ass. Don't know nuttin bout no crypto. ;)
it’s the conversion of your unrealized gain in crypto into goods that’s the transaction people are often missing. No “maybe” about it, you attest you did or didn’t transact in crypto (other than to buy and hold) when you sign your tax return starting 2020 (there’s a special box for it).
The private sale of second hand goods is very likely not for a gain and so the irs doesn’t really care about that too much
Jeez man, I'm practically amish and even I have a crypto account. Who the hell uses PayPal anymore?
I still use paypal. My other hobby is tournament paintball and in that world if you don't have PayPal you're considered a scammer.
Adrenaline_6
12-30-21, 09:49
I still use paypal. My other hobby is tournament paintball and in that world if you don't have PayPal you're considered a scammer.
That's funny. The $700 sale I mentioned in post #9 was a rare custom Carter Buzzard that I have had and used to compete with in pump tournaments. Haven't used it in years, so I finally broke down and decided to sell it to a guy looking for one in California. A work buddy still plays and is on some message board, so he saw that guy was looking for one and knew I was selling one. He put him in contact with me and here we are. Your right...Paypal helps insure I get my money and he gets the merch.
That's funny. The $700 sale I mentioned in post #9 was a rare custom Carter Buzzard that I have had and used to compete with in pump tournaments. Haven't used it in years, so I finally broke down and decided to sell it to a guy looking for one in California. A work buddy still plays and is on some message board, so he saw that guy was looking for one and knew I was selling one. He put him in contact with me and here we are. Your right...Paypal helps insure I get my money and he gets the merch.
ha, that is funny. I started playing PSP Events in 2003, after World Cup 2009 and a 6th place D3Xball finish I took a 9 year break and got back into it. Paypal is a necessity for that world of online commerce. Punk ass kids who will scam you outta shit, PayPal makes it much harder to do.
Adrenaline_6
12-30-21, 11:58
ha, that is funny. I started playing PSP Events in 2003, after World Cup 2009 and a 6th place D3Xball finish I took a 9 year break and got back into it. Paypal is a necessity for that world of online commerce. Punk ass kids who will scam you outta shit, PayPal makes it much harder to do.
Nice. I got to compete in the Earon Carter Stock Class Invitational in Vegas in 1998. We got 3rd. A pro team (the All Americans - All cheating bastards too) got 1st. A legit good team, the Dragoons got 2nd.
What if everything is paid through friends/family?
Hmmm. Wonder if the “friends/family” designated transactions will be treated differently.
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From an article I just read:
Will I have to pay taxes when sending and receiving money on PayPal and Venmo?
This new threshold change, according to PayPal, is currently only for payments received for goods and services transactions, so this doesn’t include things like paying your family or friends back using PayPal or Venmo for dinner, gifts, shared trips, etc.
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