Biden, Democrats require Venmo, PayPal, others to report $600 or more of payments to IRS

https://justthenews.com ^ | January 5, 2022 - 5:09pm | By Nicholas Ballasy

[KevinB]

So if we sell a used sofa for $650 and are paid via Venmo or other cash app, is that money taxable?

If you paid $500 for it and sold it for $650 you would have $150 of ordinary income or capital gain depending on whether you were in the business of selling couches. Of course, if you were not in the business of selling couches and you paid $650 for it and sold it for $500 (losses would be the typical case when selling personal items) you would not get a loss for tax purposes. This has always been the rule. What is being discussed here is simply a tracking mechanism, as insidious and onerous as it is.

[4yearlurker]

Okay. I stand corrected. I just got off the eBay community board for sellers and it appears they beefed up the tax reporting law I was talking about. It used to be 600 dollars for a single sale,now it is 600 dollars in total sales! I was right and wrong at the same time. Live and learn. This will kill eBay sales even more and bring back more sellers to the flea markets.

[Red Badger]

Our CU provides Money Orders and cashier’s checks at no charge.........................

[4yearlurker]

See my post 42.

[AAABEST]

I don’t like this crap at all - fed.gov has no business in transactions like this.

But yeah, some of us have been complying with suck-ass tax laws all along.

So I don’t GAF if my tenants payment service sends me a 1099. I have to report that income anyway.

[Red Badger]

Imagine you just sold a laptop computer for $800.

You get the $800 into your account and forget about it.

Three years later, you get a letter from the IRS about unreported income that you owe back taxes, INTEREST and a FINE.............................

[ctdonath2]

Yes. IRS will consider it as taxable income, unless you file paperwork showing a loss.

Guilty until proven innocent.

[virgil]

I guess we go back to the old fashioned back yard sale. Craig’s list may be okay.

[1Old Pro]

I guess we go back to the old fashioned back yard sale. Craig’s list may be okay.

Cash has been and continues to be king. Independent contractors will most always cut at least 20% from their rate if paid in cash.

[Georgia Girl 2]

Key word here is “plans”. Not happening. People are reporting that debts they owe the IRS are showing up zero. The IRS website is down for a month for “ maintenance “. A month? The IRS faithfully runs me every year for a phony tax payment from my old Corp which my accountant says to ignore. This has been going on for 10 years. Haven’t heard a word from them in a year.

[Bon of Babble]

Sending money to a friend as a gift, paying rent etc is exempt.

For the moment. I expect that to change shortly.

[Mygirlsmom]

Confused. Is this $600 or more in a calendar year or single transactions of $600 and above?

I resell things online from time to time, (sometimes I make a small profit, but usually I am trying to recoup a portion of my cost) but I also use my online accounts (Paypal, Zelle, etc.) to split restaurant bills and reimburse family if they do any shopping for me.

To have to keep track of all of that is going to be a nightmare.

[Red Badger]

Single transactions of $600 and above............

[BozoTexino]

Nice. Money orders are free at ours. Cashiers checks are nominal. They have a pretty good app, too.

[TheConservativeTejano]

Partner, we need the month of November to come to us quickly.

The moron DemonRats are going to find out how popular they are come this November.

[Gaffer]

I am not about to pay taxes on anything I’ve sold unconnected to real estate on which I previously paid taxes on the money used to purchase it plus paying sales taxes. No way. No Venmo, PayPal or anything that reports one scintilla of data to the IRS. I’ll sell my guns or whatever on local venues where the transactions are face-to-face cash.

[servantboy777]

>>First step is to stop using these apps and go back to doing business the old-fashioned way.<<

Exactly. Dumped Pay-pal. Use $$cash$$ whenever possible to avoid banks tracking your purchases and reporting to the ferrules.

[Dawgreg]

That is why I use a Credit Union...............

We have for years. So glad we do because I wondered if our money would be safer with all this crap coming down. Sounds like it is.....;)

[OrangeHoof]

My landlord is now requiring the rent in cash to circumvent this.

[Pearls Before Swine]

Sure does. I didn’t want to get into that. Furniture probably has a depreciation lifetime of 10 years. Will a seller use straight or accelerated depreciation? What if he hasn’t claimed it in prior years? A true can of worms for the casual seller.