Posted on 01/07/2022 6:27:42 PM PST by Rusty0604
But let’s say you sell a couch to someone online for $1,200. As long as you can prove with a receipt that you originally paid more than $1,200 for that couch, that is not considered taxable income, Wilson says.
The tax reporting requirement started on 2012, though the threshold then was higher. A seller would only need to report income to the IRS if they had received $20,000 worth of payments per year and there were at least 200 transactions on their account. Starting in January, “the threshold is being reduced dramatically, from $20,000 to $600, with no minimum number of transactions,” Rosenthal says.
This updated reporting requirement is being confused with a separate proposal from the Biden Administration as part of a $3.5 trillion spending bill that is currently being debated ..Under the proposal, the IRS would review every bank account with a balance above $600 or with more than $600 worth of transactions in a year.
That is unclear: since this new reporting requirement also applies to someone is buying goods using a peer-to-peer payment platform then it could include buyers whose purchase total over 600.
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