Heads Up - IRS Reporting Threshold for Online Platforms Drops to $600 Nationwide

[Rented Mule]

So apparently they snuck a provision into the recently passed stimulus bill that lowers the threshold for online selling platforms to have to issue a 1099-K to $600 with no minimum number of transactions, effective the 2022 tax year.

https://www.cnbc.com/2021/03/26/its...g-the-irs-about-income-from-online-sales.html

There are going to be a lot of people surprised comes spring of 2023 when these start getting sent out. For those who sell on eBay etc. and currently aren’t tracking their expenses, I’d recommend you start doing it.

 

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[onadraw]

What was the threshold before?

 

[Rented Mule]

What was the threshold before?

The federal threshold was over $20,000 in annual sales AND more than 200 transactions. There were a few states that already had a threshold below $1,000 so in those states residents were already receiving a 1099K if they exceeded their states threshold.

 

[pepperj]

Seems that there's an estimated $1Trillion a year problem-so they go after the easy fish first-not the fat cats.
https://www.latimes.com/business/st...osting-the-us-1-trillion-a-year-irs-estimates

 

[smokeythecat]

I read my Ebay terms and conditions and I have one sale -a detector in 2021. Less than $500.00. I have ceased selling on the net or anywhere else for that matter. I'll donate to Goodwill - seriously. I mainly used Ebay to get rid of stuff I didn't want. Now...no more. I have records going back years for what I paid for stuff, and I do a cut and paste for everything saved on the cloud for my purchases and sales since 2017. So I have my accurate cost basis. I do not make money when I sell like this. My problem is my accountant costs $250.00 an hour and THAT just breaks the camel's back, so to speak and makes getting rid of stuff just too expensive - so 'd rather give it away! When you would get a 1099-K you have to fill out a schedule "C" for that. Its too much paperwork to deal with.

 

[pepperj]

I read my Ebay terms and conditions and I have one sale -a detector in 2021. Less than $500.00. I have ceased selling on the net or anywhere else for that matter. I'll donate to Goodwill - seriously. I mainly used Ebay to get rid of stuff I didn't want. Now...no more. I have records going back years for what I paid for stuff, and I do a cut and paste for everything saved on the cloud for my purchases and sales since 2017. So I have my accurate cost basis. I do not make money when I sell like this. My problem is my accountant costs $250.00 an hour and THAT just breaks the camel's back, so to speak and makes getting rid of stuff just too expensive - so 'd rather give it away! When you would get a 1099-K you have to fill out a schedule "C" for that. Its too much paperwork to deal with.

Gee we must have the same acct.for charging. Lol

While in business ours just stated this:

"Just make everything B&W-no grey"
"You have any grey, and they knock on the door, it will cost a whole lot more than the grey ever saved, while we sort it all out"
"If you don't like that, find yourself another acct."

I sleep very well following those wise words.

 

[galenrog]

This was not snuck in. Our financial planner told us about this about a month before the bill passed. I will grant, however, an opinion that most of the professional jackasses in Congress never read any bill. Only the approved synopsis, if anything. By being ignorant of what is in the bill, they can claim it was snuck in.

I have not logged onto eBay in several years.

Time for more coffee.

 

[smokeythecat]

I'd like some coffee too. But I'll settle for Coke. If I had a coffee now I'd be up all night. Fortunately the lawn guy came today! Yeah! The tree guy is coming tomorrow!

 

[Bassmaster96]

Wow that's ridiculous. People using online platforms to sell junk that they have around the house should not have the headache of a 1099. That's going to cost eBay a lot of sellers and sales. Just ridiculous, I get tired of stupid

 

[smokeythecat]

Well, I'm donating to charity and getting receipts for my donations from now on. That's it. Done.

 

[Ohiogoldfever]

Don’t you dare try and make a dime without paying the man. You work your ass off? Pay the man. You buy something with that money you worked for? Pay the man, you save that money for later in life? Pay the man. Sell something you already paid sales tax on? Pay the man.

Couple more years and we’ll be taxed to breath dirty air. What a time to be alive. What we need now is a digital, cashless system so they can squeeze you for every penny.

Have you ever heard an official talk about curbing frivolous government spending? Bahahaha

 

[smokeythecat]

Frivolous government spending...never head of that...

 

[Tommybuckets]

l I never sold anything on ebay etc and now it looks like I never will. The fees were already terrible and now to have to keep track of pennies?!! Heck no. I already hate K1s and any excess forms. I feel sorry for the people that will have to get an advanced accounting degree to deal with some junk they sold from their garage. Good grief.

 

[Armstrong]

I think 6000 would be fairer. It would at least allow you to get rid of stuff and not be in a different bracket. My state started it this past year so I'm done selling on there.

 

[Bassmaster96]

I think 6000 would be fairer. It would at least allow you to get rid of stuff and not be in a different bracket. My state started it this past year so I'm done selling on there.

Yeah I mean they may as well set it at 0 if they're going to set it at $600. I'd say at least $10k. It's just unnecessary any way you look at it

 

[cyberdan]

never got a 1099K yet but always keep track of expenses, what I sell and the cost. For the last several years I use turbotax for personal and business. Takes hours but it is thorough.

 

[Onewolf]

Craigslist, Cash only. They can’t track it...Yet.

 

[smokeythecat]

I'm done buying anything let alone selling anything. Retirement will do that to you.

 

[Keppy]

I stopped selling on e bay about 2 years ago but i have other places to sell and for cash no more net selling.

 

[Phil]

Now we know what "TAX THE RICH" really means.