Posted on 04/02/2022 11:26:17 AM PDT by george76
Yes, the feral gov't is like a spoiled brat that spends whatever they want from mommy's credit card and max it out. And they keep getting the credit card max limit raised. Both my wife and I have youngest siblings like that; as adults they went into bankruptcy and never learned how to handle money, and are poor now. Just like our feral gov't, which will collapse and send us all into the poorhouse.
Wad it up and throw it away.
I see lots IRS 1099-Xs in EBAY sellers futures.
They tax us when we make it and tax us when we spend it.
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Now they will tax you because you spent it - on the amount you spent. Sounds like prepaid cards are on the list of reportable amounts.
Wad it up and throw it away.
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The business are going to track your expenditures and report them - not reporting is like not reporting bank interest - THEY will come after you.
Be prepared with you legal teams and tax teams, as you will be penalized for not reporting, fined and billed for interest accrued.
Easy course is to just stop using the services they will be taxing on the K form.
invested our labor in storing, packaging and handling the salesLOL
YOUR labor is not tax deductible, nor is it an "investment".
"packaging" and "handling" is only deductible if you paid someone to do it or for packaging materials.
The cost of "storing" is only deductible if you paid to store it.
It's very simple. It's called COST of goods sold.
You didn't really think you could deduct your own labor from your own profit did you?
Let’s say you bought commercial real estate for $200,000 and you sell it several years later for $250,000. After the closing, the title company or other closing agent files a 1099-S with the IRS, reporting that you received $250,000 in proceeds from the sale.
On your tax return, you need to list the $250,000 as gross proceeds and $200,000 as your basis, subtract your $200,000 basis from the $250,000 gross proceeds, list the $50,000 net as a long-term capital gain, and then pay capital gains tax on the $50,000 gain. If you fail to do so, you will get a letter from the IRS saying that you received $250,000 that you failed to report, and because you did not report it they are assuming that it was all ordinary income, so you now owe income taxes, penalties and interest on the $250,000 in unreported income.
This is basically the same thing, but it will apply anytime you sell anything and receive $600 or more. Happy record keeping!
If you used PayPal to buy $1,000 worth of used books or something, why would the IRS even care about it since it doesn’t involve anything that should be reported as YOUR income?
“The 1099K is a newer form that is now expanded for reporting on “Gig Economy” type operations (Lyft/Uber/DoorDash etc). It, AT THIS TIME, is not a document that a wage-earner or retiree would be getting. Then again, in tax history, there have been many operations that grew like Topsie!”
Anyone receiving money over the threshold on PayPal/Venmo/Etc will get a 1099-K, whether is money from gig work, or just garage sales.
What sucks, is if you are receiving payments from a business, they will send a 1099 to the IRS as well (one from the payor, and one from the payment platform), so your income gets double reported to the IRS. Happens every year to me, and takes a ton of paperwork to avoid problems with the IRS.
Yep, got a 1099K for the first time (less than $1k) and in part my return is still being reviewed by the IRS. Normally I get my refund processed no longer than 3 weeks. It’s been 8 weeks now and they have requested I send in additional information. It sucks. No idea how long this will take.
In the case you mentioned, you’ll have to prove your cost basis was $800. That means you’ll need purchase receipts for the items you are selling on Ebay. Good luck with that, as a lot of the items I see there are would be like yard sale stuff and those receipts were tossed long ago. Going forward, you’ll need to maintain all you receipts for proof if you stay in the Ebay business.
By far the biggest atrocity inflicted on the people of this country was the passage of the 16th amendment - the national income tax.
What it did was to give politicians and bureaucrats possession of all your money and then they decide on how much to let you keep.
Whatever happened to the movement of a few years back for the repeal of the 16th amendment and replacing it with a national sales tax?
I thought “Tax the rich!” was their battle cry..
Not receipts...but value at the time you purchased it.
IRS is wat behind in processing 1040-X.
I filed one in June 2021. Still not heard from IRS.
Whatever happened to the movement of a few years back for the repeal of the 16th amendment and replacing it with a national sales tax?
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The Deep State didn’t want it. It runs the country.
I had to educate last IRS agent I talked to on phone. She wanted me to declare my withdrawal from annuity as income. I had explain to her that it was return of capital, and not interest or capital gains.
Welcome to Tax World, all you ignorant plebes.
Lemme guess, you didn’t get a 1099 for UI payments related to the Plandemic...
You mean the reporting of 600 stopped?
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