Maybe this will boost the USPS. Go there for a money order then toss it in an envelope with a stamp. Maybe pay a little more for tracking to allow both parties to see it's moving to where it needs to go.
Paypal and 1099k's
- Thread starter 81cutlass
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The more things change the more they stay the same. It was only a matter of time before the loophole that was overexploited for years had a boomerang/snap-back effect swing to an extreme in the other direction.
As far as the 'keep track and hold money to the end of the year' argument, it's worse than you think. If they're lumping epayments into a 1099 type system, its on the recipient to make quarterly payments to the IRS. You can wait until the end of the year, but there is (or used to be) a penalty you paid on top for not making a quarterly contribution. So, there's that hanging out there too.
If only people could just see/understand that all this newfangled crap they keep rolling out with ever year or two sucks? Instead they think they're now gaming the system. It'll be hilarious when the day comes and there's this realization the whole bitcoin thing is worthless. It's tied to nothing of value, no product, no commodity, nothing. It relied entirely upon the idea some other sucker will come along and give you value for... well, nothing? At least if you bought futures you could, conceivably, take physical possession of an actual item. Same with a stock, in theory you get a fractional share of residual liquidation of a going concern or dividends. But those ecoins give you nothing.
As far as the 'keep track and hold money to the end of the year' argument, it's worse than you think. If they're lumping epayments into a 1099 type system, its on the recipient to make quarterly payments to the IRS. You can wait until the end of the year, but there is (or used to be) a penalty you paid on top for not making a quarterly contribution. So, there's that hanging out there too.
If only people could just see/understand that all this newfangled crap they keep rolling out with ever year or two sucks? Instead they think they're now gaming the system. It'll be hilarious when the day comes and there's this realization the whole bitcoin thing is worthless. It's tied to nothing of value, no product, no commodity, nothing. It relied entirely upon the idea some other sucker will come along and give you value for... well, nothing? At least if you bought futures you could, conceivably, take physical possession of an actual item. Same with a stock, in theory you get a fractional share of residual liquidation of a going concern or dividends. But those ecoins give you nothing.
Along the lines of Bitcoin, I keep hearing about the NFTs that celebrities are selling. You mean I pay $100 - or whatever denomination you as the “seller” choose - for digital access to a picture?
A fool and his money…..
I'm going to take a digital picture of the parts. Sell them on ebay...no, wait....cash only. No Dogecoin, Bitcoin, Worthlesscoin, whatever. Cash on the digital hood.
Today’s reality is dominated by mass hysterias of one form or another. Crypto 'mining' is arguably the most expensive way to heat a room, and the 'proof of work' central to bitcoin is something between non-sequitur and oxymoron since words are supposed to mean specific things, and heating a room with servers toiling away on checksums does no kg*m*m/s/s WORK, and only increases entropy.
My exact point. The 1099K itself isn't much of anything but the easiest part of it. Finding the receipt or establishing a value of the car part your dad gave you is tough. And if you can't find your net cost, your gross profits all become net profits, thus 100% taxable. But as you sell your car parts on ebay, you can't do much about it as if it's a hobby, you can't deduct any expenses for a hobby at least through 2025 thanks to the 2018 Tax Cuts and Jobs Act (go ahead, look it up, you'll see it's true). So if you say, refurbished that old alternator and you bought it for $25, cost you $30 for paint and cleaning, etc., and sold it for $90, you can't say you just got a $35 taxable profit. You actually have a $65 profit as the materials you bought to refurbish the hobby alternator can't be used to reduce your tax burden. What a bunch of crap. Even if it cost you $100 to refurbish it and you sold it at a loss, you can't deduct "hobby expenses".
The scary part is knowing when you are just an occasional seller, or when you are a business. If you work at it regularly, and you make a profit 3 out of the last 5 years (Example- selling stuff on Ebay for the last 10 consecutive years), it's considered a business, and you ALSO have to pay social security and Medicare taxes, etc. The good thing is, you get to deduct your alternator paint and materials that you couldn't as a hobby as it's now a business expense.
As you can see, if you follow the letter of the law, it can be way more complicated than just getting a 1099K for $600. Right now, to get one, you need $20,000 in gross receipts AND >200 transactions. So if you made say, $300K selling stuff on ebay, and did so with 198 transactions, you will NOT get a 1099K in 2022 for this year's taxes. But starting next year, they're cracking down.
Well, I'm going to muse a little bit here, but, I think it's less about a deduction of hobby expenses than it is a hard and provable alteration in basis. I would think you've got a strong case since it can all be connected and provable.
Well, again. Wouldn't the 1099 itself open you up to needing to pay the quarterly distributions to medicaid/financial absent falling into some provable exemption? If anything, being declared a business should let you deduct all manner of things from pro-rata garage taxes and depreciation, to insurance on your inventory (cars) to the improvements. upkeep, and maintenance.
Not to mention doing away with the reconditioning questions.
It may be something that the irs will need to send out a series of opinions for guidance as it gets closer. And I'd love to hear any opinions from any tax guys in more detail if nothing else to act as an exercise in mental master bation.
I'd rather eat the hobby expense deduction than pay the business taxes and fill out all that other crap. Point is, someone else is dictating that you're a business if you get more than $600 in payments from a third party like paypal, ebay, etc. Because you'll get a 1099K whether you like it or not. Then you'll need to prove you're just a hobbyist. But you got a 1099K, so you're officially in business. To me it's another one of those things where you have to prove you're not supposed to get f***d while they're f**king you.
The 1099K only comes after the end of the year. So it could put you in the quarterly tax payments scenario for 2022, and if you don't know it until January of 2023, you could even get fines imposed for not filing your quarterlies in a timely manner. This is what I was talking about that the average joe blow who sells ONE rare NOS 4-bbl carburetor for $850 and collects from paypal will be potentially subject to. Mass confusion abounds.
NOS parts bonfire. Deduct it all as a business loss. And if my wife dies before me, then hopefully I'll know when it's my time to go, then just before that, I'll draw out all my investment funds. And just so nobody else will have to pay taxes ever again on that money (besides me), I'll have a money bonfire, too. With hot dogs and s'mores (with food and lighter fluid written off as a business expense).
The 1099K only comes after the end of the year. So it could put you in the quarterly tax payments scenario for 2022, and if you don't know it until January of 2023, you could even get fines imposed for not filing your quarterlies in a timely manner. This is what I was talking about that the average joe blow who sells ONE rare NOS 4-bbl carburetor for $850 and collects from paypal will be potentially subject to. Mass confusion abounds.
NOS parts bonfire. Deduct it all as a business loss. And if my wife dies before me, then hopefully I'll know when it's my time to go, then just before that, I'll draw out all my investment funds. And just so nobody else will have to pay taxes ever again on that money (besides me), I'll have a money bonfire, too. With hot dogs and s'mores (with food and lighter fluid written off as a business expense).
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