Birdsofprey
PRS Tesseract
For at least this tax year. Did anyone catch this story a few days ago in the news? It appears there going back to the 20K/ 200 transactions.
1099K postponed
- Thread starter Birdsofprey
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bodia
Authorities said.....best leave it.....unsolved
Yep, I saw that, too.
archtop
New Member
- Joined
- Dec 6, 2021
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- 625
yeah!!!!!!! I saw the recent WSJ article. This is a silly rule that might bring in tens of $$ in additional tax revenue while costing tens of millions in IRS enforcement and additional tax prep fees.
I'm picturing a team of US Marshalls hauling off grandma and grandpa for selling some old bunkbeds and taking PayPal or Venmo as payment then not knowing they were supposed to report the sales..
I'm picturing a team of US Marshalls hauling off grandma and grandpa for selling some old bunkbeds and taking PayPal or Venmo as payment then not knowing they were supposed to report the sales..
CandidPicker
Tone Matters. Use It Well.
This is good news. My first thought was to research the tax law enacted with respect to eBay/Reverb, since I don't understand it completely.
If someone could describe briefly what tax reporting would have been required if a eBay sale was in excess of $600, but sold as used less than what it was originally purchased for, this would be appreciated.
EDIT: eBay/Reverb, beginning January 1st, 2022 and as of December 26th, 2022, still require that a seller still provide his SSN or EIN to eBay or Reverb if their gross sales exceeds $600. The $20K/200 sales limit was for the tax year 2022 on 2021 sales. Not to worry, though, you only pay income tax if you sell an item for more than you originally paid, (ex. you buy a bike for $1000 and sell for $700, no income tax payment is required).
eBay & Reverb have not amended their tax law webpage yet, so until they do, hold onto your hats.
My plan is to sell one of my pieces in January, and it would be helpful if someone could describe what previous tax requirements were on the books in 2022, but rescinded just recently, just in case the law might be re-enacted.
If someone could describe briefly what tax reporting would have been required if a eBay sale was in excess of $600, but sold as used less than what it was originally purchased for, this would be appreciated.
EDIT: eBay/Reverb, beginning January 1st, 2022 and as of December 26th, 2022, still require that a seller still provide his SSN or EIN to eBay or Reverb if their gross sales exceeds $600. The $20K/200 sales limit was for the tax year 2022 on 2021 sales. Not to worry, though, you only pay income tax if you sell an item for more than you originally paid, (ex. you buy a bike for $1000 and sell for $700, no income tax payment is required).
eBay & Reverb have not amended their tax law webpage yet, so until they do, hold onto your hats.
My plan is to sell one of my pieces in January, and it would be helpful if someone could describe what previous tax requirements were on the books in 2022, but rescinded just recently, just in case the law might be re-enacted.
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JasonE
PRS Fan Boy
I haven't been able to read the details on this but I did see a report on it. I didn't see that they were going to be changing it back. In fact, what I saw tells me to beware. This means there is more time for the law suits filed by eBan and Reverb/Etsy to get some traction. However, it looks like if nothing changes before the end of next year, you will be hit with two years of tracking on this. They only postponed the reporting, not the tax burden. That to me sounds like they couldn't get everything ready in time to send out the 1099K forms by the deadline.
Buildermike
Can you have too many?
I received a 1099k from Paypal last year (FY 2021) because of a couple of guitar sales. I don't know if anyone else here received one from Paypal.
CandidPicker
Tone Matters. Use It Well.
Guys,
Unless you made a profit (ex. Sold your item for more than you paid for it originally) you will not need pay income tax.
You'll just need to hang onto your purchase receipts until you file next year's taxes. (You keep records of your taxes for the previous 7 years, do you not?)
The $600 sales cap was enacted for 2021 to current day, and eBay has not updated their tax webpage that says otherwise. Therefore, the WSJ article was either misquoted or misunderstood as saying a repeal of the $600 cap had occurred.
If, however, someone can provide a direct link to the WSJ webpage that says otherwise, please do so. It's one thing to not understand what an article says, it's another when you spread misinformation about wishful thinking...
Unless you made a profit (ex. Sold your item for more than you paid for it originally) you will not need pay income tax.
You'll just need to hang onto your purchase receipts until you file next year's taxes. (You keep records of your taxes for the previous 7 years, do you not?)
The $600 sales cap was enacted for 2021 to current day, and eBay has not updated their tax webpage that says otherwise. Therefore, the WSJ article was either misquoted or misunderstood as saying a repeal of the $600 cap had occurred.
If, however, someone can provide a direct link to the WSJ webpage that says otherwise, please do so. It's one thing to not understand what an article says, it's another when you spread misinformation about wishful thinking...
Birdsofprey
PRS Tesseract
So if you go to the source (IRS.GOV). I found a sentence that said you will not be required to provide a 1099 K for the lower 600.00 amount for 2022. The amount would be the previous 20K/ 200 transactions. Now all the platforms send to the IRS the same copy you would get from Reverb, the Bay etc etc. may only be a year reprieve but let’s peeps get the game plan and ducks in a row. Guy’s one last comment, go to the source!
archtop
New Member
- Joined
- Dec 6, 2021
- Messages
- 625
Consult your tax professional if you're unsure!
From the IRS' 1099-K page:
"NOTE: On Dec. 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of $600. For calendar year 2022, third-party settlement organizations who issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions."
www.irs.gov
Other articles:
www.wsj.com
www.usatoday.com
www.marketwatch.com
From the IRS' 1099-K page:
"NOTE: On Dec. 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of $600. For calendar year 2022, third-party settlement organizations who issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions."
Understanding your Form 1099-K | Internal Revenue Service
Form 1099-K reports payments from payment apps or online marketplaces and from credit, debit or stored-value cards. Use it to help figure and report your correct income on your tax return.
Other articles:
Opinion | The IRS Grants a Harassment Reprieve
The $600 payment rule is postponed for a year, after a public uproar.
www.wsj.com
IRS delays $600 1099-K tax reporting for Venmo, PayPal, CashApp and more
IRS delays gig-tax filing rule for side hustles earning at least $600. 2022 1099-K reporting limits revert to $20,000 on 200 transactions.
www.usatoday.com
Measures to delay $600 tax-reporting threshold for PayPal, Venmo payments fail to make it into omnibus bill
Millions of gig workers and sellers remain on track to get a 1099-K tax form for the first time, after efforts to delay a tax-reporting change fail.
www.marketwatch.com
JasonE
PRS Fan Boy
Thanks for the information. I hadn't made it out to the IRS site to see what was there yet. I just heard about this yesterday then I saw this post.
Thanks for the info!Consult your tax professional if you're unsure!
From the IRS' 1099-K page:
"NOTE: On Dec. 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of $600. For calendar year 2022, third-party settlement organizations who issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions."
Understanding your Form 1099-K | Internal Revenue Service
Form 1099-K reports payments from payment apps or online marketplaces and from credit, debit or stored-value cards. Use it to help figure and report your correct income on your tax return.
Other articles:
Opinion | The IRS Grants a Harassment Reprieve
The $600 payment rule is postponed for a year, after a public uproar.
IRS delays $600 1099-K tax reporting for Venmo, PayPal, CashApp and more
IRS delays gig-tax filing rule for side hustles earning at least $600. 2022 1099-K reporting limits revert to $20,000 on 200 transactions.
Measures to delay $600 tax-reporting threshold for PayPal, Venmo payments fail to make it into omnibus bill
Millions of gig workers and sellers remain on track to get a 1099-K tax form for the first time, after efforts to delay a tax-reporting change fail.
