New Tax Reporting ($600 Threshold per year) and Consignments 21 21

[Buzzetta]

I have never sold through Heritage but my understanding was that given the previous thresholds that only companies that had fifty employees or more were required to auto-generate a 1099 if the $20,000 / 200 Transaction benchmark was reached.

The new law is only establishing a new benchmark but I believe that the fifty employee rule is still in effect.   

Heritage is a larger auction house so I assume that they have fifty or more employees. 

Comiclink or Metropolis may not which is why some may not have received one from them. 

[ttfitz]

On 2/2/2022 at 7:41 PM, PovertyRow said:

Since I do nave a tax accountant and have not needed one just a simple question. The "hobby sales" states that expenses cannot be taken through 2025. I hope this question i simple enough for not needing a tax accountant. If I pay $100 for a book and sell it for $150, am I getting taxed on $50 ($150 sale -$100 cost of book) or the whole $150?

Thanks!

Pretty sure that "expenses" does not include the cost of good sold. So yeah, the $100 the book cost you doesn't get taxed.

Expenses are things like your storage space, or the home office you use to keep your records, etc.

[jimjum12]

On 2/3/2022 at 3:12 PM, ttfitz said:

Expenses are things like your storage space, or the home office you use to keep your records, etc.

Yes, and that gets deducted from the gross profit, not the total sale, so it's not as onerous as many think at first. GOD BLESS....

-jimbo(a friend of jesus)

[silverseeker]

I just received this email from eBay today, and it sounds like there may have been confusion on their end as to when the $600 threshold will be applied...I'm assuming it does not go into effect until this tax year.

A recent technical issue resulted in a 1099-K form being incorrectly provided to you. Please disregard the incorrect 1099-K form. The incorrect 1099-K form was not sent to the IRS or California Franchise Tax Board.
We’re working to resolve the issue and ensure that it will not happen again. Unless you had more than $20,000 in gross sales and 200 transactions in 2021, we will not submit a 1099-K form to the IRS or the California Franchise Tax Board.
We sincerely apologize for the error and any inconvenience this may have caused.

[Mr. Zipper]

Wow... that's crazy. I thought it was next year, but when I got the 1099-K I assumed I was mistaken. In fact, I just got the hard copy 1099-K (for $1,200) in the mail today, but no email saying it was an error.

[Tnexus]

On 2/4/2022 at 5:09 PM, Mr. Zipper said:

Wow... that's crazy. I thought it was next year, but when I got the 1099-K I assumed I was mistaken. In fact, I just got the hard copy 1099-K (for $1,200) in the mail today, but no email saying it was an error.

Check your Ebay messages. That's where I saw mine.

[DR.X]

On 1/7/2022 at 12:01 PM, namisgr said:

Yep.  For retirees no longer collecting salary and in an income bracket lower than the 28% charged for collectibles gains, it encourages flipping books in 12 months or less.

 

Why is that?

[namisgr]

On 2/13/2022 at 12:37 PM, DR.X said:

Why is that?

I figure that if your income puts you in a bracket below 28%, then should you be able to qualify collectibles sales as income you'll pay less than the rate on collectibles held at least a year.

Perhaps I'm missing something?  

[Raze]

On 2/4/2022 at 7:09 PM, Mr. Zipper said:

Wow... that's crazy. I thought it was next year, but when I got the 1099-K I assumed I was mistaken. In fact, I just got the hard copy 1099-K (for $1,200) in the mail today, but no email saying it was an error.

I thought it was starting this year 2022 and got a hard copy 1099 as well with no email stating it was an error.

 

[Tnexus]

On 2/13/2022 at 8:11 PM, Raze said:

I thought it was starting this year 2022 and got a hard copy 1099 as well with no email stating it was an error.

 

Check your Ebay messages. That's where mine popped up in. I didn't get a notification though.

[Tnexus]

Edit: Doublepost.

Edited February 14, 2022 by Tnexus

[Raze]

On 2/13/2022 at 11:01 PM, Tnexus said:

Check your Ebay messages. That's where mine popped up in. I didn't get a notification though.

Thanks for the heads up, but someone mentioned that and I looked last night and did not find it.

Do you know what the subject line was?

[Tnexus]

On 2/14/2022 at 6:07 AM, Raze said:

Thanks for the heads up, but someone mentioned that and I looked last night and did not find it.

Do you know what the subject line was?

"An incorrect 1099-K tax form for your 2021 taxes was issued to you." on Feb 4th.

If you live in one of the states that already had this rule before the update, that might be why.

[Mr. Zipper]

On 2/14/2022 at 11:18 AM, Tnexus said:

"An incorrect 1099-K tax form for your 2021 taxes was issued to you." on Feb 4th.

If you live in one of the states that already had this rule before the update, that might be why.

I'm in New York and they follow the Federal threshold of $20k for 2021 Tax Year.

I suspect the issue is this... I have two PayPal accounts. One for my biz and one for my personal hobby stuff.

My biz paypal account gets a 1099k because it meets 20k threshold. Earlier in 2021, I got a notice from eBay that I had to provide tax ID for my personal account. So, I think they are now linked and I get the 1099k on my personal account as well because both accounts total over $20k. 

I pay what I am obligated to for business income, but not excited about getting nickeled and dimed on personal hobby transactions that amount to garage sale level stuff. 

[WolverineX]

https://www.ebaymainstreet.com/issues/1099-k-federal-tax-reporting

[ADAMANTIUM]

On 5/11/2022 at 1:58 PM, Wolverinex said:

https://www.ebaymainstreet.com/issues/1099-k-federal-tax-reporting

ya I got that too, posted it in the ebay thread, screenshot anyway

I had totally forgot about this thread  so thank you!  

[snitzer]

Now they care? Hysterical. It must be hurting their bottom line. Welp Americans, you know what you need to do here if you want to see real change.

Edited May 11, 2022 by snitzer

[rexinnih]

Got one too from Ebay. Haven't dove into it yet but will check it out. 

[shadroch]

My goodness. Asking people to step up and pay their taxes.  What has happened to this country?

[WernerVonDoom]

On 5/11/2022 at 1:53 PM, shadroch said:

My goodness. Asking people to step up and pay their taxes.  What has happened to this country?

That's not the point. They are putting screw after screw after screw to the lower/middle class while the rich is getting off scot-free.  I'm sure that the gov grabbing 30% of grandma's $600 sofa is the best use of the IRS's time.