All good things must come to an end.

Thanks Joe. What happened to only fucking with people making over $400K?

Seems the Dems. slammed a bill through to require anyone making $600 or more on The Bay, to be 1099'd. You know the routine, it was buried within the Covid Relief Bill because it couldn't pass on it's own. Ouch! What used to be a fun "side job" to help finance a few days vacation, just became a tax burden. I know, I know ... it should be reported anydamnway, but many (especially during these rough times) are selling old toys and clothes the kids have outgrown, or that treadmill that's been hardly used and is now taking up room in the garage, just to help put food on the table. The threshold was $20,000 and 200 sales/year, but overnight, the Dems. shoved this legislation through to drop it to $600/year, no matter if it was only one sale. Sorry, but I wouldn't consider that a "business". Sure, if you keep receipts for every single item you ever purchase during your lifetime, it could be considered an expense. But that $50 gizmo you bought 10 years ago (and paid sales tax on), then sell on-line for $5, will now be a gain (unless you can prove what you paid for it as a deduction).

I can see this as a huge boon to the cash only garage sale and flea-market people.

I don't need this to turn into an ethics argument, 'cause I'd lose that one, I'm just pointing out how it's gonna add QUITE a bit of suckiness to my "hobby" and very likely put an end to my favorite pastime. :(

For youse dufes who deal through PayPal, you can get nailed also. I have no way of figuring out which PayPal transactions were personal transfers and "business" transfers. Some here send $$$ to me through PayPal when we have a G/H fund raising event. The way I read the legislation, that's now considered "income". WTF?

BTW, It's not just eBay and PayPal, it affects many, many "Gig workers", free-lancers, etc. Oh well, I guess SOMEBODY has to support our southern neighbors busting through our open border.

https://www.politico.com/news/2021/0...-losers-473902

That sucks. The proposed “mileage tax” is really going to hurt people too if it gets through. How are they going to track how much people drive? Isn’t that pretty much what has taxes are already? The people who drive more use more gas, so they pay more.


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He's already cut off the Canadian meds when he goes to taxing social security (which he has historically voted in favor for) the old poor folks will be in a bind.

I think his actions up to now say volumes more than any criticism I have.

Well, for me personally, I get slammed. I list EVERYTHING with “free shipping”. It’s tough to figure a price with shipping charges as you have no clue where the eventual buyer may live. I simply “guesstimate” an average for shipping and add it into my asking price. If I sell to someone on the east coast, I do ok. If I sell to the west coast, I get nailed for hefty postage. I just figure it’ll all average out in the long run. Bottom line is, what shows as income, actually comes with a lot of expenses. Original purchase price, “procurement expenses” (time, travel, etc), fees and shipping costs, including supplies (boxes, bubble wrap, packaging tape, etc). To keep track of every nickel and dime spent on buying people’s old junk, just isn’t worth the effort. Besides, at most sales I attend, there is no receipt given and who gives receipts at a yard sale? Plus, I’ll many times make a pile of stuff and they’ll make a blanket (bundled) price. To run it as a serious business, I’d need to hire a frigging accountant and retain tons of paperwork. That takes all the fun out of it imho.

More taxes and more bureaucrats to collect them. Welcome to the world of liberal ideologues. Brace yourself for more fun.

I don’t think there is any new taxes. Its making eBay report on taxes that should already be being collected, but typically aren’t. I think what attracted the attention of the feds were the amount of retail sales more than what hobbyists do.
A prime example is I was recently looking to order a new chainsaw chain and eBay is one of the buying choices that came up. I could have ordered it cheaper on ebay than from Amazon. it was cheaper because although listed as Stihl, from the reviews they are actually an aftermarket brand. There isa pretty big retail business in fishing tackle overruns on line as well.

That doesn’t make itgo downeasier though I’m sure.

BKB

I've always heard that a politician could tear up a steel ball with a rubber hammer. Lots of truth in that

P-hole, there are many legitimate businesses that use eBay as their platform. I’m talking tens to hundreds of thousands of dollars. Hit $20,000 and the 1099’s go out. When I had my business, I accounted for every penny with receipts and paperwork, which would all get turned over to my accountant on a monthly basis. The general eBay type is basically like a “hobbyist”. It’s like having a yard sale every weekend. Theoretically .... or I guess I should say legally, that income should be reported, but who TF is going to go through all the b/s involved? As stated, even if you’re simply cleaning out your garage, if you don’t have receipts of what you paid for the junk you’re selling and keep records of every penny you spend (signs, ads, whatever) to put on your yard sale, every cent you make is “income” and is supposed to be reported. eBay is just an easy target because it’s all laid out in front of them. The problem is, they nail you for your GROSS sales, not your NET sales (unless you have proof of expenses). That’s fine for the big boys as they are a genuine on-line business entity, but it sucks big weenies for the little guy just trying to make some extra pocket change to buy bait.

Yep I’m sure. I’m just saying it isn’t the little fish avoiding the kind of volume of taxes that they aretargeting.
BKB

I’m not sure what you’re saying. All sales go through eBay and they 1099 you at $20,000. You have no say so regarding the matter. It goes directly to the IRS, so I’m not sure how they’d avoid those taxes. They’ve already started collecting State sales tax for the states that have voted that mess in. There’s no option, if an item sells in one of those states (and the list gets larger by the day), eBay automatically collects it and sends it to the State. Now the Feds want their cut, but it’s way too complicated when they target little “hobby” sellers. They already nail the big, commercial players, now they’re scraping the bottom of the barrel for pennies. How much extra money, manpower and paperwork will it take the IRS to collect from anyone who made a lousy $600 on an internet sale? Typical government. They’ll spend a dollar to collect a quarter.

Just because you’re 1099’d doesn’t mean you’re taxed. It’s simply an earnings statement. What I mean is they aren’t going to chase down and audit every 1099.
And if you do report it and don’tshowa big loss on your business then you need to talk to an accountant.

BKB

Would you want to be the one to take that chance?

A lot of my part-time, extra duty jobs give out 1099’s.


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Quote:

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Originally Posted by BarryBobPosthole

Just because you’re 1099’d doesn’t mean you’re taxed. It’s simply an earnings statement. What I mean is they aren’t going to chase down and audit every 1099.
And if you do report it and don’tshowa big loss on your business then you need to talk to an accountant.

BKB

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Actually, the big computer in the sky runs a cross check on every single 1099 and matches it to the return. (At least they used to when I did taxes back in the day.). Now, what you list as your basis or cost of good sold is a different story...

But, it has always been taxable income. They’re just shutting down a loop hole you could drive a truck through.


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My part time home business generates 1099 from all my regular builders, my walk-in clients don't give me anything except a check. Come tax time, I give my Tax Guy all my 1099's and just the amount from all those walk-ins.
I use to pay quarterly taxes, but since I turned 72, my accountant suggested I have some of my MDR's sent in, rather than pay quarterlies, he said there are some savings doing that way, (have not clue)
Last year I sent in way more than I owed, and I got a 1099 from the Government showing interest they paid ME on the extra money, damn, never had that happen before.

Yeppers, I ran my own business for 20 years. I was incorporated and ran it above board and legitimately. EVERYTHING was documented, receipts kept for business expenses, invoices printed for EVERY job, etc. The way it was supposed to be done. I was an independent contractor and 99% of my business was commercial .... LARGE commercial accounts .... Shell Oil, Mobil Oil as well as Mobil Chemical, International Mineral & Chemical, Mosaic, the State of Florida and two different city governments to name just a few. They all issued 1099's. I retained a handful of GOOD residential customers from my early days, before switching to commercial only. I never collected payment on the spot, but always invoiced at the end of the month (including residential). My invoices were numbered and all were accounted for and filed. I had a Corporate Attorney as well as a full-time accounting company

This eBay gig has been just a fun thing to do for some coinage in my pocket after retirement. I in no way treat it as seriously as a bonified business and have no desire to return to recording every mile driven, trying to divide personal vs. business expenses, keeping track of every nickel spent on "business" etc. That takes the fun out of the little, retirement side gig. It would be too much like going back to work. Sorry, did I mention I'm retired? The fact it's nearly impossible to figure exactly what I spend on "inventory" makes it even more difficult. I hit yard/garage sales, thrift stores and estate sales, as well as sell personal junk that's been hanging around the house for a bazillion years. Receipts are rare or non-existent.

The main problem I have is, the way I understand it, this new legislation will kick in for THIS tax year! Heck, we're already 25% into the year. I guess if I have a "fiscal year", it's Jan. - Dec. This is kicking in mid-stream. Another problem is, I have a garage stacked floor to ceiling with old "inventory" and no physical cost accounting, much less any clue what my CODB has been while collecting and selling that crap. It's just been treated as a hobby and not taken all that seriously. There are billion dollar companies that sell on eBay, the previously established $20,000 cap keeps them all legitimate, as they should be. But going after the little guy selling grandma's teacup collection really throws sand in the Vaseline for a lot of people. The way it was done by slipping it into the Covid Relief legislation just reminds me of typical pork barrel b/s. I guess I need to buy a receipt book at Wally World and start making bogus receipts to "prove" my cost of goods and bogus records for my CODB. Yeah right, ain't gonna happen. :banghead

I see a lot more of Craig's List and a slew of yard sales in my future ... but I'm just not mentally into that sort of thing ... or interested actually.

We can all agree that we've got way too much government charging way too much taxes and wasting way too much money but that ain't gonna change.

At least until China takes completely over

Quote:

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Originally Posted by quercus alba

At least until China takes completely over

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Ha! As "The Big Guy" said, "China is going to eat our lunch? Come on, man.”

I wonder if the Chinese 1099'd Papa Joe?