Posted on 11/26/2022 9:09:49 PM PST by SeekAndFind
“Exactly- how do I deduct what I originally paid for it and the loss I incurred by selling it for less than 10% of what I paid for it?”
It’s easy!
Just have your CPA run the figures, do the market research to establish value, and give you a solid number. Don’t have a CPA? Well then, just send us the money.
I wish I were joking, but given the choice between fighting the IRS and trying to get them to accept your figures, or just paying it safe and paying an extra $100 or so, most of us will choose the latter.
Gentlemen, your choices are to pay standard income taxes on these amounts, or to wait until one of those new, shiny IRS agents wants to meet you. At that point, you can explain why you think this doesn’t apply.
Let’s be real. Are you going to risk having your finances fully examined when the taxman wants an additional $100 or two?
“I buy a camera for $2000 in, say, 2016. Sell it in 2022 for $700. If I’m to declare the $700 as income, should I also declare the $1300 loss?”
Pardon me, I’m just making trouble here.
Just where are you, Mr. Taxpayer, pulling those figures from? Did you get your CPA to sign off on that? Because pulling figures out of the air just won’t cut it.
An even better one. You send a friend $1,000. You have no method of easily proving what it was for. Was it a gift, wages, or for purchased goods?
You are now on the hook for that, I’m afraid. If I’m wrong, someone please explain how.
Cash is still the way to go and in our experience most people are cooperative when I say cash only on a transaction
But old Sh-t head criminal Joe gets his 10%.
I love how our government and it’s endless supply of bureaucrats constantly threaten the people of this country.
I don’t make enough money to pay income taxes so I’m not worries about it. Tiny bit of extra work added W9s on income form.
You will pay Taxes + Penalty + Compound Interest.
If they go easy on you. If they decide to drop the hammer, well you just admitted that you knowingly file false income tax returns -- a felony.
But hey, the IRS doesn't typically file criminal charges in such cases, at least when the dollar amount is low. Do you do anything likely to have the IRS want to make an example of you, such as post on a conservative internet forum and chat site?
Uh, GFY IRS.
Yes, hubs sold an old amp on Ebay, I mean 30 years old, got over $600 for it.
Ebay warned us we would get a 1099K, reported to the IRS as “income.”
We did not make a PROFIT, we sold an old amp. I am sure we lost money on the deal.
I will inform our CPA but still, how do you convince the IRS that the 1099K is not accurate since it was just liquidated old assets that you took a loss on?
I have a better idea. How about the federal government not spend money that they don't have on projects that are not in its constitutional purview?
Not_Who_U_Think wrote:
“
“such as selling an old piece of furniture, according to accountants.”
This is just stupid.
So where is the line on the 1040 where I let the IRS know I was selling an old piece of furniture and that’s the reason I got a 1099-K??
“
I guess the key is to not use 3rd party apps/services; from the article:
“report transactions of at least $600 that are made through so-called “third-party” facilitators such as Venmo and PayPal.”
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