OT - New 1099K Federal Tax Thresholds
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Contact your Congressman today to rescind this egregious misguided assault on average taxpayers.
You always did owe taxes on any net profits from sales (though losses also count against that). The only difference now is that the new rules have lowered the threshold for platforms reporting sales activity, period. That's what's actually happened.
And so if you sold that bike for $1,200, you would only owe tax on the $200 profit, subject to the mentioned threshold.
Please know that I am not advocating for or against this aspect of the ARPA; I just thought I should mention this info.
I do; mostly digital but some paper receipts if they're important enough. Don't get me started on companies pushing paperless accounting, though. Seeking out and collecting PDF statements from all entities one does business with just to make their paper costs go down would be worse than a second full time job. There's just no time for that nonsense.
25+ years gets too analogue, though, so the rule is I can't make a profit anything I've had that long. haha
Actually, eBay's other change from a year or so ago is what keeps me from selling anything through them anymore. They've required direct access to a checking or savings account ever since the final separation/disintegration with PayPal.
For people that collect books, it's smart to do that for insurance anyway.
Collectors of all sorts — coins, stamps, baseball cards, beanie babies — will have the same problem unless they bought with the intention of eventually selling them at a profit. Most collections end up being sold at a loss, but I don’t know how we’d prove it absent detailed record-keeping that few hobbyists do.
Self-employment taxes would be extremely minimal on someone that sells a few items here or there and could easily be offset with costs of doing business or losses from other sales. If someone is doing it for their livelihood, they should be paying taxes like the rest of us. Now, if you said the tax system in the US is screwed up and favors meg-corps and uber wealthy versus small businesses and average people, I'd wholeheartedly agree.
so i offer my books to a local bookshop for credit only, and what they do not want is donated to Goodwill.
too much tax complicationfor for too little money
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