Warning to all sellers!

[cohunt]

Just because you receive a 1099- doesn't mean its taxable--- it is reportable but not always taxable.

Not a lot has changed--- you have always been required to report income--- but not everyone does it. ( example is waitresses with cash tips often go unreported, etc.)

If you sell items as part of or all of your income , it is supposed to be reported and taxable. Paypal- gunbroker- Facebook marketplace-- ebay-- etc are currently places where individuals and companies are taking advantage of making income that can be "hiddden" ---- new ways of running a business require new laws for the government to get income taxes collected ---- gotta have some way to payoff that 28 trillion $ debt , free Healthcare for illegals,, and have $ for all that covid relief

 

[Recon$$]

Their "reasoning" for lowering the reporting limit is to collect more taxes at the current rates instead of raising taxes. Sure seems like an invasion of privacy to me. Half of everyone's bank records will be reviewable by federal agencies without even a subpoena never mind a warrant.

 

[SEGARE]

The $600 amount has been adopted. It will apply only to money sent or received as Goods or Services, and the money is taxable only if there is a profit on the item.

The inflow/outflow is a proposal for total yearly transactions totaling $10k or more.

 

[JAYgs8163]

This can be change with the stroke of a pen. The one we are talking about is the reporting across all financial institutions. It is part of the build back better plan. PayPal being the king of this. They report nothing. The key to getting around this is being able to cash any payment form without it being reported. We are down to USPS money orders. If you use a cashiers check you will need to take that to the bank to cash it or pay a check cashing joint 3-5% to cash it. Maybe being a business owner I have gotten used to dealing with the new banking and business laws that change every year for us. They will spend $10,000.00 to send you a $500.00 bill. They only way to combat this is to save your invoices for the purchases of anything you may sell later. Then use it a write off as a proven loss.

It's not part of the "build back better plan" or change for the worse plan! It's entirely different,
" American Rescue Plan Act of 2021 passed earlier this year by Congress and signed into law by the President."

 

[softtail103]

No sir it has not. This is in preparation for a expected upcoming change. PayPal or any other like company do not have to report anything at this time.

 

[JAYgs8163]

No sir it has not. This is in preparation for a expected upcoming change. PayPal or any other like company do not have to report anything at this time.

If you say so:

" The American Rescue Plan Act of 2021 (the Act) significantly modifies the reporting threshold associated with Form 1099-K, Payment Card and Third Party Network Transactions, from $20,000 in aggregate payments and 200 transactions to solely a threshold of $600 in aggregate payments (with no minimum transaction requirement)."

"What's new with Form 1099-K in 2021?
This change comes after President Biden signed the American Rescue Plan Act of 2021 (ARPA) into law on March 11th, 2021. According to Forbes, the bill specifies the minimum threshold has been lowered for Form 1099-K, a form filed by the Payment Settlement Entities (PSEs) to report gross amounts of all reportable payment transactions."

The forms should be mailed starting in January as I understand it.

 

[Zen Archery]

How about they focus on paying back the 9 million still waiting on their 2021 tax return. (Bitter not bitter…) ok back to topic…

Stupid Govt!!!

 

[softtail103]

All of you need to reflect on how this came to be. New ways of the government taking our money. Now you get to feel the screws being turned. Remember this was all created by you the consumer. You chose to give your hard earned money to very large companies who don't pay the taxes they should. This is the large deficit that the gov is trying to make up. The lack of taxes that they collect from the large companies. They need to get it from somewhere and guess what, its you. Once again we did this to ourselves by shunning the small business guys who pay their taxes and not buying the politicians. Today is the last day of my small business. My closer is effective today. Just another small business that is gone so the consumer can continue to save a few buck online. No more gun store to visit and hang out with the guys. No more place to escape from the wife. I am very thankful for the great customers I have had the pleasure to work with. All of this talk of being ripped off by someone on the other side of the computer is not something that happens when you walk into a small business to make that purchase.

 

[remingtonman]

Not sure where I should make this post! Administrator please feel free to let me know/move if this is the wrong spot (probably is)

I just want to let everyone know that the IRS now has this new rule that all the popular online payment systems will now be recording how much you are paid and send you a 1099 at the end of the year. Most people will not even know about this until it's too late.
This means that if you accept money from someone through PayPal, zelle, cashapp, that the IRS will require them to report you if you make over $600 in a year.

I'm not sure it applies to Friends & Family transactions but don't quote me on that because more research needs to be done.

How this works:
Let's say you buy a gun or some other thing at Scheels. You spend $850 on the gun. Since guns are not tax deductible, you don't think twice about saving the receipt. Water goes under the bridge. You decide later to sell the gun so you list it on here or some other site. When the gun sells the buyer PayPal's you the money and you do everything legally, ship to a FFL etc... But then at the end of 2022 PayPal sends you a 1099 and you are required to report it as income as if you created it out of thin air! Not trying to discourage anyone from buying or selling. Not trying to make anyone afraid or anything but everyone needs needs to know about this so you can save receipts or use a different system to exchange money.

Whenever the scumbag government officials get involved with things like this you are sure things are going to be fricked up for the worse. There was a reason our forefathers fought for a small government. It has gotten out of control

 

[softtail103]

Just because you receive a 1099- doesn't mean its taxable--- it is reportable but not always taxable.

Not a lot has changed--- you have always been required to report income--- but not everyone does it. ( example is waitresses with cash tips often go unreported, etc.)

If you sell items as part of or all of your income , it is supposed to be reported and taxable. Paypal- gunbroker- Facebook marketplace-- ebay-- etc are currently places where individuals and companies are taking advantage of making income that can be "hiddden" ---- new ways of running a business require new laws for the government to get income taxes collected ---- gotta have some way to payoff that 28 trillion $ debt , free Healthcare for illegals,, and have $ for all that covid relief

Let me speak for the small business owners who PAY their taxes. We don't hide money, we don't hire the best tax lawyer to avoid paying our fair share. You sir should never walk into a small business with that kind of thinking. Stick with Amazon, Bass Pro and the rest of them who pay very little in taxes. My last post related to this was deleted because my language was to harsh. This comment includes you Len. You are a small business owner also. This guy thinks we hide earned money. I will hold my tongue so I don't offend your fragile sensibilities.

 

[crystalgayleguy]

we can thank LET'S GO BRANDON for this

 

[Old Rooster]

Thank you GrayCreed and others for bringing this to my attention.
Question:How about trades?Do I still have to show a trade on my taxes?
Thats a trade for someone's rifle by trading one of my rifles,still have to show it on taxes?

 

[softtail103]

Thank you GrayCreed and others for bringing this to my attention.
Question:How about trades?Do I still have to show a trade on my taxes?
Thats a trade for someone's rifle by trading one of my rifles,still have to show it on taxes?

They will have no knowledge of that trade. Not is it taxable unless you profit from the trade.

 

[southpa]

That is a hard one, because to my knowledge, once you send it off, that money order is gone, and you gotta just hope the person selling is a strait shooter. Just had a guy send $1750 for a scope in the form of usps money order, I'm glad I have a good name on here, otherwise I wouldn't expect anyone to do that. I personally would be very leery about doing that with new members, or actually anyone that isn't well known on here and generally shows a good moral compass in their posts

Agreed. But that still isnt enough haha. Do you realize what your father would say?

You sent sent 4k dollars to a complete stranger? For a gun? Halfway across the US? You never met this person? And he took your money and didnt send you the gun? In the mail?............that's your own darn fault boy.....

Me:
Yes but he had a good reputation and a bunch of logical posts online....

Hard one for me. Maybe I'm too old school.