IRS reminder: We want more of your money

[2dogs]

If your wife decides she doesn't like the couch anymore and buys another one, and you sell the old couch for $150, is that really income?? Now in a perfect world, you could find the receipt from when you originally bought the couch to show you paid $1500 for it at Macys 8 years ago, but does anyone really think they can find that original receipt? Or does anyone really want to spend the time rooting through their files looking for it? So now you get a 1099 from Paypal or Venmo for the couch and 15 other unwanted household items you got rid of last year and it becomes an exercise in paperwork to explain it all to uncle so that you don't have to pay taxes on the money for the tenth time.

It made a bit more sense when the cash flow to be reported was $20,000 because that starts to sound like a business maybe is being run. But $600?? I can spend more than that on dinner, wine and cigars on a good night! But guess what - government spending is going through the roof and SOMEBODY has to pay for all the money the gov is giving away. That somebody would be you and me. So prepare to get squeezed a little harder. It's for the immigrants, and Ukraine and all the other charities that the gov thinks we should support. So feel good about yourself. Really!

Don't forget, you'll need to run depreciation on the couch before you claim it. That's how F'N stupid our tax code has become. People are sick and tired of it, and that's why people are bitching.

The only way out of this tax nightmare - which will never happen - is a flat tax or national sales tax. No deductions- period. I'd be happy with either, provided that the federal government is required to control its spending.... LOL!

[JaySmith]

I still don't get the uproar. Seriously. I wish someone could explain it to me because anytime I've been paid through paypal - unless it was a legitimate gift from a family member, which of course is legal up to a fairly high point - I declared it as income because it IS income. If your business runs payments through a CC processor, do you get a pass from the IRS and not have to declare that income? I've always looked at Paypal as just another CC processor.

If you are selling something via ebay or elsewhere online, and you take payment through paypal, that's income isn't it? Of course you can itemize and depending on sale value, it can be listed as a capital gain or loss, and you can end up with more of a deduction because typically used shit that is sold is a loss. I know multiple folks selling things like vintage guitars, vintage firearms etc that they bought when the market was higher and then sold at a loss because a lot of collectible stuff is down. So frankly that can be a help if declared as a loss of investment. I'm no accountant though so maybe I'm missing somehting.

Before I get flamed, I'm not trying to defend the IRS. I just don't understand what people are bitching about, unless they were using Paypal or other online payments to hide income and now they're pissed that they can't do so. Is that what it is? Legitimate question. Nobody wants to give the IRS money, obviously, especially under this admin.

All tax is theft.

I accept venmo for egg sales. Will the IRS automatically deduct the cost of feed, hay, and general maintenance required to get those eggs? No. So now I have to keep every receipt and track what was used down to the penny, all for a fraction of a dollar in tax revenue? This is what is called a write-off because it doesn't matter, it's just not worth the effort. It is not a reasonable burden on the average taxpayer.

[Delkal]

If you sold everything for a loss you are OK. You just need to fill in two lines

Example: You receive a Form 1099-K for selling your couch online for $700, which is less than you paid for it.

On Schedule 1 (Form 1040):

Enter the Form 1099-K gross payment amount (Box 1a) on Part I * Line 8z * Other Income: "Form 1099-K Personal Item Sold at a Loss, $700"
Offset the Form 1099-K gross payment amount (Box 1a) on Part II * Line 24z * Other Adjustments: "Form 1099-K Personal Item Sold at a Loss $700"

These 2 entries result in a $0 net effect on your adjusted gross income (AGI).

Here is the IRS page on the new form and it is confusing as hell and listing the multiple forms you need to fill out if anything is sold at a profit. For now the IRS said they are not going to enforce this law since it would probably cost more in auditors and increased paperwork.

https://www.irs.gov/businesses/under...ur-form-1099-k

[steve_010]

I started accepting checks instead. Already deleted my PayPal.

[JenniferG]

If you want to buy a bicycle from me it's cash only.

[bogey1]

OK, I get it when it's put that way clearly. Unfortunately, being self employed my entire life and never wanting to deal with an audit, I have quite literally reported every freaking penny regardless of where it came from. I guess I may be a dufus for doing so.

And yeah, I also have probably 20+ years worth of receipts in boxes in the attic...

Now my accountant (ex irs agent) has a license in all fifty states, one day we were talking,
and he said if you are paying taxes, you are doing something wrong. That man was a genius
when it came to taxes.
Ive been self employed since 89, never been audited.
I did once threaten the irs agent in philly, if they show up at my house they'd better bring a lot of body bags.
They are scum, just like the .gov they work for.

[JaySmith]

https://www.cnbc.com/2023/11/21/irs-...-payments.html

If you received business payments via apps such as PayPal
or Venmo or e-commerce companies such as eBay
, Etsy
or Poshmark in 2023, your tax return may now be a little less complicated.

The IRS announced Tuesday that 2023 would be a *transition year* for a new tax reporting requirement affecting such payments. Once in place, it will trigger Form 1099-K for just $600 in payments, even if that income stemmed from a single business transaction.

For 2023, the old limit of more than 200 transactions worth an aggregate above $20,000 will remain in place. The agency will phase in the lower threshold by adding a $5,000 limit for 2024, but it didn*t specify a transaction limit. The $5,000 limit will apply to tax returns filed in 2025.

The $600 threshold will go into effect for tax year 2025, and taxpayers over the limit can expect to receive a 1099-K at the beginning of 2026.

[GunLawyer001]

The IRS is presumed to be correct in whatever they decide to believe about you, so if you appeal their erroneous ruling, the burden of proof is on YOU to prove that you did NOT do something.

That's a problem, but it's all "civil" so you have no real protections from the Bill of Rights. A dollar from selling your used lawnmower looks just like a dollar earned selling your paintings, but few people keep receipts to prove what they paid, or that they got a used couch as a gift 5 years ago and they just now sold it for $100.

Maybe the IRS will only go after obvious for-profit enterprises. Just like nobody would indict an innocent man for 70-80 crimes, right? Nobody would seize your cash and make you prove you didn't earn it from crimes? Nobody would use the PATRIOT Act to wiretap political opponents?

Democrats have repeatedly proven that they can and will abuse EVERY power you give them, from the power to set minimum requirements for gun owners, the power to decide what counts as "being in the gun business", the power to censor "disinformation", to the power to impeach a President just as a tactical ploy.

[bogey1]

The IRS is presumed to be correct in whatever they decide to believe about you, so if you appeal their erroneous ruling, the burden of proof is on YOU to prove that you did NOT do something.

That's a problem, but it's all "civil" so you have no real protections from the Bill of Rights. A dollar from selling your used lawnmower looks just like a dollar earned selling your paintings, but few people keep receipts to prove what they paid, or that they got a used couch as a gift 5 years ago and they just now sold it for $100.

Maybe the IRS will only go after obvious for-profit enterprises. Just like nobody would indict an innocent man for 70-80 crimes, right? Nobody would seize your cash and make you prove you didn't earn it from crimes? Nobody would use the PATRIOT Act to wiretap political opponents?

Democrats have repeatedly proven that they can and will abuse EVERY power you give them, from the power to set minimum requirements for gun owners, the power to decide what counts as "being in the gun business", the power to censor "disinformation", to the power to impeach a President just as a tactical ploy.

And don't forget, it's YOUR responsibility to make sure your accountant did your taxes correctly (says the irs agent). That's the reason why I dropped it on them while on the phone.

[Sblzrd65]

The 1099-K has been around for years now, they just lowered the threshold. As to why the $600 number, that's the same as used for the 1099-MISC and 1099-NEC, which businesses should be filing out whenever they pay rent or. for services to anyone other than a corporation. So in a way it just make reporting more consistent across the forms.

That said, 100% it will cause extra confusion for the regular taxpayer and I'm not sure if any extra value will be achieved from it.