bgbuck153
Well-Known Member
What if we were to buy gift cards for where the sellers wishes or a visa gift card sent as payment?
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Ways around being 1099?
- Thread starter bgbuck153
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What do you mean ways around 1099?
bgbuck153
Well-Known Member
If you use PayPal and Venmo (could be others as well) to receive payment on selling stuff the IRS is going to 1099 the seller once they hit $600 in sales.
Please show me where IRS has this codified in the tax code?
pwrdbycotn
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New tax law requires a 1099 on anything over $600 in accumulated sales through electronic payment services, such as paypal.
The way around this is either to send/receive as friends and family or, as a seller, keep track of every receipt and prove you took a loss.
pwrdbycotn
Well-Known Member
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All you have to do is google it. It was part of a covid stimulus bill.
LRNut
Well-Known Member
I own two businesses, and any vendor or contractor to whom we pay more than $600 in a calendar year will get a 1099 from us. In fact, we require a W9 before allowing any work. There are some exceptions; for example, if the company we are doing business with is a C Corp, we don't have to issue 1099s to them.
Does Paypal and Venmo ask for a W9 or your SSN? If not, I am not sure how they can report to the IRS. One thing you could do is file Sched C and simply claim the goods sold were worth more than what you sold them for - and then you can claim a loss
. Actually, you can't claim a loss for a business that is a hobby, but I can't imagine you would have a significant profit unless you really do have a business.That sucks....I'm lucky I guess only MO or cash to me.
LRNut
Well-Known Member
IRS form 1099 is not issued by the IRS; it is issued for a variety of payments from a party paying misc income of $600 or more. Your bank issues you a 1099-INT for interest payments. Sell any real estate and the title company will issue you a 1099-R.
DoneNOut
Well-Known Member
That would work if that is the agreement.
A quick Google search turned this Forbes article up....
Form 1099-K is a tax form sent to users that may include both taxable and nontaxable income sources. A taxable source of income is included in your income, such as wages, rents, tips, and retirement income. Whereas a nontaxable source is excluded from your income and you will not need to report on your tax return.
Some examples of nontaxable income are:
But while the new law does not create a new tax, you must keep good records of any taxable income received.
Will Venmo, Cash App and Zelle Users Have to Pay a New Tax?
For Venmo, Cash App and other users, this may sound like a new tax—but it's merely a tax reporting change to the existing tax law.Form 1099-K is a tax form sent to users that may include both taxable and nontaxable income sources. A taxable source of income is included in your income, such as wages, rents, tips, and retirement income. Whereas a nontaxable source is excluded from your income and you will not need to report on your tax return.
Some examples of nontaxable income are:
- Money received from a friend as a reimbursement
- Money received from a roommate to pay their share of the rent
- Money received from a loved one as a gift
But while the new law does not create a new tax, you must keep good records of any taxable income received.
A lot of added legwork when you may not keep detailed records of guns, scopes, etc that you have bought over the years, especially if it's from a private party with no receipts. To think that the irs is just going to take your word that everything you've sold is at a loss is foolish at best. All this change has accomplished is fleecing Joe America for more money. Taking in the consideration the slew of new irs workers that are being hired we're definitely in for some changes.
