Save all your receipts! Biden's garage sales tax kicks in next year.

[balloonshark]

No, it isn't. Not even close.

I'm in a program with Amazon that sends out items to be reviewed. They assign a fair market value to each item and if you receive more than $600 worth in a single year, you get a 1099. It's simply a standard IRS requirement for any non-employment related income over $600



The 1099 was established in 1917.

Form 1099 - Wikipedia

en.wikipedia.org

Joe was born in 1942. OP is blaming him for something that was created 25 years before he was born.

They send you a 1099-NEC. Mine was for $635 since I went over their $600 threshold.

I have a small amount of bitcoin and misc. coins on coinbase. They didn't have to send a form since I have way less than $600.

 

[Exterous]

I got a 1099 from Chase for credit card point referral bonuses since those equated to over $600. And we've sent out 1099s for contractors when we paid them over $600 for our business. This is just moving certain businesses/income streams in line with what all the others have to do

 

[trenchfoot]

Guy I know has a hobby of flipping cars and trucks for cash. He wheels and deals one vehicle at a time, spiffies them up nice and clean, makes minor repairs and maintenance and puts them back on the market for a pretty good mark-up considering labor and parts invested.

He gets burned every once in awhile from getting scammed although he learns his lessons well from the losses.

I'm just wondering how he handles his tax situation on these sales, if he even declares at all.

 

[nakedfrog]

Reverb (which is like ebay specifically for musical items) has been sending sellers a 1099 for the past year.

As mentioned, it's for profits. So you buy some gear for $2000 and sell for $1500, you shouldn't end up paying anything.

Again it's kind of sticky if like me you bought something via CL with cash, and then might want to re-sell it. I didn't think to get a receipt--those sales are all as-is, and final, so normally what good would a receipt be... Thankfully I freaking HATE selling stuff and try my best not to do it. Facebook Marketplace--like Craigslist-- is full of scammers, lowballers and just plain weirdos. I state "Lowball offers will be ignored" and immediately get a 1-word reply with a very low-ball offer in it...like WTF dude.

Yep, the Reverb thing was the first thing I thought of.
And yeah, since I found out my local music store will do consignment, and I get 70% of the sale price (and they also put the stuff on Reverb) I'm just going to take that 30% hit to not have to deal with annoying buyers. If I make over $600 and get a 1099 and have to pay taxes on that as income... uh, oh noes?

 

[iRONic]

Guy I know has a hobby of flipping cars and trucks for cash. He wheels and deals one vehicle at a time, spiffies them up nice and clean, makes minor repairs and maintenance and puts them back on the market for a pretty good mark-up considering labor and parts invested.

He gets burned every once in awhile from getting scammed although he learns his lessons well from the losses.

I'm just wondering how he handles his tax situation on these sales, if he even declares at all.

That's a good question. When I lived in Connecticut my house was on the corner of a high traffic street. A guy in town did the same thing your buddy did with the flipping of cars, and he asked me if he could park a car at the top of my driveway with his phone number on it. Every time he sold a car he gave me 100 bucks! It was a while back but I think I got like five bills from him over the course of a few years.

 

[manly]

Guy I know has a hobby of flipping cars and trucks for cash. He wheels and deals one vehicle at a time, spiffies them up nice and clean, makes minor repairs and maintenance and puts them back on the market for a pretty good mark-up considering labor and parts invested.

He gets burned every once in awhile from getting scammed although he learns his lessons well from the losses.

I'm just wondering how he handles his tax situation on these sales, if he even declares at all.

Umm, what do you think?

 

[Lost_in_the_HTTP]

Barely relevant anecdote:

Back when I was working Dispatch overnight, I got a 911 call about 5AM or so. Caller stated an apparent accident with two cars overturned against a tree. I hit pagers for Fire and EMS and give out the information. This is scanner land and most everybody has one at home. Few minutes later I get a phone call .... 'that's my house, I flipped the two cars over so I could pull the gas tanks off getting ready to scrap the cars.'

 

[Lost_in_the_HTTP]

Meanwhile, OP seems to have gone off radar.

 

[trenchfoot]

Umm, what do you think?

I plead the 5th

 

[Perknose]

Meanwhile, OP seems to have gone off radar.

Well, his user name indicates he's still coming towards us.

 

[sdifox]

Meanwhile, OP seems to have gone off radar.

He's in Biden's eBay prison

 

[ElFenix]

Well, his user name indicates he's still coming towards us.

😡

 

[positivedoppler]

You calling me out for something?

 

[positivedoppler]

😡

Sure your the moderator. If it angers you I post I can stop posting.

 

[Perknose]

Sure your the moderator. If it angers you I post I can stop posting.

No one is threatening you to stop posting. When mods post, they post as regular posters.

A formal moderator comment is always bolded and signed and placed within the post it references, like this one.
Perknose
Forum Director

 

[manly]

LMAO OP got butthurt over a single emoji response.

 

[Lost_in_the_HTTP]

Op(ie)'s been selling these for years and might have to pay taxes finally.

 

[Stokely]

Yep, the Reverb thing was the first thing I thought of.
And yeah, since I found out my local music store will do consignment, and I get 70% of the sale price (and they also put the stuff on Reverb) I'm just going to take that 30% hit to not have to deal with annoying buyers. If I make over $600 and get a 1099 and have to pay taxes on that as income... uh, oh noes?

I didn't even think of consignment...what with Sam Ash just closing all stores, and of course they and Guitar Center having driven out most mom and pop stores decades ago...it didn't even occur to me to think local. There are a few stores out there. One thing I do NOT like about that idea is having monkeys (aka, the public) banging on my gear.

One thing's for sure, both Craigslist and Facebook marketplace SUCK. Lowballers, scammers and weirdos are all I've gotten. And then you still have to go meet someone (if they show up) in some parking lot where they'll be sure to try lowballing you after agreeing on a price. Fricking hate the whole process. I'll be using Gear Exchange and Reverb despite hating shipping expensive items.

I don't think I've ever sold anything for more than I paid for it, let along made $600. Not a flipper...I use stuff and sell it if I want to not use it anymore. But as you say, if I ever did make that much, so be it.

I do have a couple items I myself bought locally for cash, and didn't get a receipt...so those wouldn't be things I'd want to sell online as I couldn't prove how much I paid for it.

 

[Leeea]

this is already the law?

Any payments over $600 are supposed to be reported now. Has been this way forever. Or at least since 2011 when I first familiarized myself with this bit of tax law.



The only difference here is instead of the government politely asking people to be honest, there is going to be some enforcement.

What is a W-9 form, and when do I need one?

The taxpayer information on a W-9 is used by a business to report to the IRS on payments made to independent contractors and other vendors. Should you be filling out a W-9 or W-4? It depends on whether you're an independent contractor or an employee.

www.legalzoom.com

As a small business owner, it is important to collect a W-9 for any person or entity you expect to pay more than $600 in a tax year.

The fact I was subjected to this and ebay was not is dissappointing to me. One set of standards for the rich, and one for main street.

 

[dullard]

Guy I know has a hobby of flipping cars and trucks for cash. He wheels and deals one vehicle at a time, spiffies them up nice and clean, makes minor repairs and maintenance and puts them back on the market for a pretty good mark-up considering labor and parts invested.

He gets burned every once in awhile from getting scammed although he learns his lessons well from the losses.

I'm just wondering how he handles his tax situation on these sales, if he even declares at all.

Sum up money coming in during the calendar year for that activity. Subtract money spent during the calendar year for that activity. Is the result a profit? If it is a profit, and if he declares it, then he pays income tax on only the portion that is a profit.

 

[dullard]

That $600 is fine for business but its absolute nonesense for the used market. Selling a 3y old gpu like the 3080 ti alone will hit the limit. Unless you saved that craigslist text msg from 2 years ago that states " agree to buy it for $900" or probably higher during ghe cryoto boom.

Here is your legally valid receipt: https://www.tomsguide.com/news/nvidia-geforce-rtx-3080-ti "it’s got a starting price tag of $1,119". Remember, for the IRS you don't need a physical receipt of the exact amount, you just need a reasonable fair market value at about the time you bought it. This uses the same fair market IRS rules/laws used with donations of items, selling of things like property or stocks before the purchase prices were tracked online, etc. The actual text is "the price at which property would change hands between a willing buyer and a willing seller". This happens everyday for a CPA. Someone walks in with Walmart shares bought in 1985 with no record of the price but sold in 2024 for a profit. You estimate the approximate price from typical share values in 1985 (anywhere from $0.48 to $0.67, the median of $0.57 is a good defendable value).

Here is your possible revenue: $649. https://www.ebay.com/itm/226136469927?epid=7047696774&itmmeta=01HXWGQAG9C946NK01MR9PACXF&hash=item34a6c8b1a7:g:6tYAAOSwA99mO-I3&itmprp=enc:AQAJAAAA4Kkrz34qN5genK46e/wMaSaTj2ALwBNAKTXzS+uLB5EubE2RvW0HYiDVjaWryoHlQYZB6cBcf++v2z2lEIJyF4pFe1hq8C1wecB2TmivvckTSEcwFSvpX2WIUogkRhAFo6PBWtAZ6tUDYXTA5WaiBKQGBKyb8eLRZBg4QowLekmdvoZzYoGDJ+kPgHO86HU3tYo9oGprPIxzN58nHwHsZH/gGi6+Kj3VMlRdT/AQFBBYcPUSA2GuLAoR0bqcM9hJBT3a5HbWBnQsCU045NDNouLX7N4SNRGii38q97nLmEbi|tkp:BFBMtqjdkO9j

Total Profit: NEGATIVE $470. That is a loss. So, there is no profit and no tax to be paid. You may have one more piece of paper mailed to you though--sorry if opening that letter is too much of a burden. From that point on it is up to the IRS auditor (if any) to prove that you actually profited from this sale--not up to you.

 

[dullard]

Starting next year, ebay and facebook market will not send you a 1099 when you sale over $600 for a given year because that rule has been delayed. So don't throw away your receipts or start retreiving them from your trash bin/can. That $2,000 gaming machine you built 2 years ago will be a tax liability if you sale it on the use market for over $600 $2000. If audited, you'll need those receipts approximate estimate of fair market value of parts purchased to prove to the IRS you sold it for less than the purchase price to avoid a tax bill. A little extra work for those who like to trade used goods but a small price to pay as Biden goes after those billionaires.

Fixed it for you.

 

[positivedoppler]

Here is your legally valid receipt: https://www.tomsguide.com/news/nvidia-geforce-rtx-3080-ti "it’s got a starting price tag of $1,119". Remember, for the IRS you don't need a physical receipt of the exact amount, you just need a reasonable fair market value at about the time you bought it. This uses the same fair market IRS rules/laws used with donations of items, selling of things like property or stocks before the purchase prices were tracked online, etc. The actual text is "the price at which property would change hands between a willing buyer and a willing seller". This happens everyday for a CPA. Someone walks in with Walmart shares bought in 1985 with no record of the price but sold in 2024 for a profit. You estimate the approximate price from typical share values in 1985 (anywhere from $0.48 to $0.67, the median of $0.57 is a good defendable value).

Here is your possible revenue: $649. https://www.ebay.com/itm/226136469927?epid=7047696774&itmmeta=01HXWGQAG9C946NK01MR9PACXF&hash=item34a6c8b1a7:g:6tYAAOSwA99mO-I3&itmprp=enc:AQAJAAAA4Kkrz34qN5genK46e/wMaSaTj2ALwBNAKTXzS+uLB5EubE2RvW0HYiDVjaWryoHlQYZB6cBcf++v2z2lEIJyF4pFe1hq8C1wecB2TmivvckTSEcwFSvpX2WIUogkRhAFo6PBWtAZ6tUDYXTA5WaiBKQGBKyb8eLRZBg4QowLekmdvoZzYoGDJ+kPgHO86HU3tYo9oGprPIxzN58nHwHsZH/gGi6+Kj3VMlRdT/AQFBBYcPUSA2GuLAoR0bqcM9hJBT3a5HbWBnQsCU045NDNouLX7N4SNRGii38q97nLmEbi|tkp:BFBMtqjdkO9j

Total Profit: NEGATIVE $470. That is a loss. So, there is no profit and no tax to be paid. You may have one more piece of paper mailed to you though--sorry if opening that letter is too much of a burden. From that point on it is up to the IRS auditor (if any) to prove that you actually profited from this sale--not up to you.

Appreciate the positive contribution and suggestion. None of the stuff I wanted to unload has any piece of paper associated with it. I was negotiating with my wife about this. She has tons of pricey purse she collected over the years(decades) and I have numerous audio equipment over the decades also worth a bit. We're both near retirement and need to downsize and each want to get rid of the other's stuff. We toyed around with maybe unloading on ebay as vintage purse holds their value really well. Pretty much any single piece of item we sale will probably go past that $600 limit and at this point that's enough reason for neither of us to sale anything. Maybe some of her more recent purchase within the previous 5 years she might be able to call CS and get a receipt...just not worth the effort at this point. If the burden of proof is on the IRS auditors....maybe. We'll wait a few more years and see how the IRS goes after people before selling.

 

[brycejones]

Appreciate the positive contribution and suggestion. None of the stuff I wanted to unload has any piece of paper associated with it. I was negotiating with my wife about this. She has tons of pricey purse she collected over the years(decades) and I have numerous audio equipment over the decades also worth a bit. We're both near retirement and need to downsize and each want to get rid of the other's stuff. We toyed around with maybe unloading on ebay as vintage purse holds their value really well. Pretty much any single piece of item we sale will probably go past that $600 limit and at this point that's enough reason for neither of us to sale anything. Maybe some of her more recent purchase within the previous 5 years she might be able to call CS and get a receipt...just not worth the effort at this point. If the burden of proof is on the IRS auditors....maybe. We'll wait a few more years and see how the IRS goes after people before selling.

You do you, but you’re limiting your options for really poor reasons.

 

[Leeea]

All the effort to just avoid paying a few dollars in tax ...

and its cumulative, you know that right? If you sell 7 items for a $100 each, your getting the form.