IRS warns taxpayers about new $600 threshold for third-party payment reporting

[palmettomoon]

You buy a 60" T.V. last year for $1,100+tax. This year you decide you are more baller than that and go up to a 98" class flat screen T.V. and decide to sell the one you bought last year. You sell it for $500 at a garage sale.

You lost $600. You cannot be charged income tax on the $500 recouped from the sale of the old T.V. I know government and common sense don't go together, but this is just common sense.

If they want to get pissy about it, armor up, stand in the stack and prepare to make entry. Otherwise, they can STFU.

 

[KB1176]

True but PayPal doesn’t send you the 1099k. They send to the IRS and the IRS sees it as pure profit or income with no cost basis. You then have to take the time to fight with them to show what was profit or a loss. It’s all about making the misery factor as high as possible so people just pay it.

The example I’ve seen is a college kid now sells stuff on eBay to make a few bucks. Sell at a fraction of what they paid. If it goes over $600 they get a bill from the IRS in 2 years when PayPal doesn’t send you a copy of the 1099k. They get hit with 30-40% tax plus penalties and interest. Now they lost money on it if they don’t fight back with the form c and cost basis.

Just a bad process to go through.

 

[Cadcom]

How many times can they tax the same damn dollar that has been payroll taxed and then sales taxed as soon as you spend your paycheck on gas to get home from work! Now they want more blood from the same turnip.

 

[palmettomoon]

I ain't got nothing but time anyway. I can fill out shytebag gubberment forms until the cows come home.

 

[KB1176]

I’ve got the same letter twice from them since July. They tell you that you can go to DC to appeal it but has to be in a certain time frame. Both letters said they can’t review it in that time frame.

 

[poopdaddy]

You buy a 60" T.V. last year for $1,100+tax. This year you decide you are more baller than that and go up to a 98" class flat screen T.V. and decide to sell the one you bought last year. You sell it for $500 at a garage sale.

You lost $600. You cannot be charged income tax on the $500 recouped from the sale of the old T.V. I know government and common sense don't go together, but this is just common sense.

If they want to get pissy about it, armor up, stand in the stack and prepare to make entry. Otherwise, they can STFU.

that works, if you keep all the records and itemize everything. so they screw you or they make you do a bunch of extra work,and the screw you. remember, when you got that tv it was with after tax money.

 

[Hayata]

I guess those 85,000 new agents will have something to do afterall...

 

[fattboyzz]

Our so called gubment wants you to do the right thing .

They in turn do as they please .

 

[blazedawg87]

I still dont understand how they get away with making you prove you sold something at a loss.
I sold a set of golf clubs that i bought ****ing 6 years ago for 700. How the **** am i supposed to prove i paid a grand for them back then?
Or i buy a putter local then sell it to a guy in washington now i have somehow magically become a business? I aint filling out receipts for this ****.
**** them and the horse they rode in on.

You use G&S for these sells so if the guy you buy from tries to screw you over you can get your money back.

 

[rockyfatcat]

I guess those 85,000 new agents will have something to do afterall...

It isn’t that simple. The CITIZENS of the united states need to figure out what the law actually is. The IRS likes to pretend they can take our money. They can only tax citizens on income from outside the country, or citizens outside the country on income from inside the country. Everything else ONLY applies to individuals and persons.

When you figure out the difference between citizens persons and individuals you will understand the fakery of the IRS