1099-K relief for casual online sellers.
Yay...that $600 limit was a gift from your friendly dumblecrats, the party of the little guy...
Not just on line sellers, either...
Folks don’t yet grasp just how hard those 1099 regulations will be if they are not changed.every cash app transaction is subject to the cumulative $600 limit. Venmo among friends for rent or concert tickets. Tips to waitstaff...anything using a digital method of payment that can be tracked will be tracked and subject to tax.
The hue and cry will be large, loud and costly.
My bother in law has his own business and his own CPA (been using him for over 11 years). His CPA said that the 1099 will not affect “normal, everyday usage like him paying me $80, per month to share my satellite internet service”.
I asked him, how does the IRS KNOW that is something as simple as him paying me half my internet service charge...I can see the IRS demand he explains why he is not issuing a 1099 to me for my payments. And on my end, I can see them asking why I am not claiming that as income on my end.
Even if his CPA is correct and it comes out in the wash, my BIL and I are going to go through the dang wringer with the IRS before it is all said and done (pun intended)!!