Update, I did a schedule "C" on my taxes and was able to show no income with expense receipts. I did leave my store open but raised all my prices over 20% to offset the Federal income tax. Now my prices are so high nothing is going to sell. I wouldn't pay those prices so my store may as well be shut down. Way to go US GOV, y'all screw up everything
if All We shut down our sales on ebay etsy etc. then those are going to do something cause is a billions of dollars what are they going to lose .. let see, im shutdown my sales to ..@@metalmanproductions9267
Thanks Mark! Was hoping you would do an update video about this! I am continuing to push my viewers to your channel to learn about bookkeeping and taxes. The video you did with me much earlier in the year has seen a spike in traffic due to all the recent interest.
I still love the tax penalties especially when you compare them to what people continue to get away with on a daily basis. Yeah, giant corporations do nothing wrong lol
Yes. I’ve already seen this coming. The apps apparently default to business transactions. The latest transaction that I noticed was where I picked up a comforter set for my sister and she paid me back via Venmo. I don’t call that business income. She said she never noticed an option to select and she never had to select when sending me money before. Too late anyway. Venmo already deducted business fees and classified it as business transaction, which means it gets reported. No telling how many times with how many people this is multiplied!
Another update, even though the $600 threshold won't take effect until 23 we still received a 1099k from ebay and etsy. My tax agent said if you had a 1099k sent on your behave I have to claim the income so the rule was not postponed for at all
Thanks for the clear and educational information. Knowledge is power. Can’t fight the system just need to learn how to use all the tools we have to help ourselves. I think the $600 threshold is ridiculous. I hope it’s reversed for good
Yep, we have a whole year for those in power to figure out this will not be a money maker for the IRS/government and will become a tax nightmare requiring more IRS personnel to deal with trying to collect taxes, interest and penalties on $600 income. Ridiculous for sure!
@@MrTargetone Exactly, I think the $600 threshold will trigger so many Americans who don't actually have a business, but are simply selling old stuff on eBay and NOT making an actual taxable profit. What a nightmare...
@@Karlynscloset It doesn't matter what rich people do, it should be $600. Are you saying that if someone else kills someone, we should all do the same or be allowed to do the same? If wrong is wrong, it doesn't matter, nobody should be able to do it. You are a tax cheat, and you know it.
Have you heard anything about bartering, trading, or even gifting items, services, and labor? This became quite an issue during Ronald Regan's IRS. In such a public sharing world created by social media a neighbor lending a diy hand, a family member thier expertise, etc...is much more visable than it was in the 1980's. The words barter, trade, exchange, but even give, lend, and share were dangerous.
Thank you for a concise and easy to understand explanation! I am considering the Reseller Tax Academy, but I don't do Facebook so I feel like I might be missing some good information.
What is to stop them from flipping back to the $600.00 in 2023? How does the IRS have the authority to make this change anyway? It was written into the legislation you mentioned by Congress. Now the IRS is nah we don't want to do that? Really weird.
As it stands right now it will flip back to $600 in 2023. I'm not 100% on how it works with their authority, but there has been a lot of pressure to increase the threshold, and it looks like they had the power to kick the can down the road a bit. There's a proposed bill right now advocating $10,000.
Hi! Thank you so much for all the information that you give-your videos really helped me when I started reselling last year. I do have a question: If I purchase something for resale and it doesn't sell-can I count that as a loss if I have the receipt? I am getting ready to clean up my Etsy and get rid of stuff that is not selling...
Question so now for beginner resellers how are they now going to pay their taxes without the 1099k form? How should they file without a tax man through like turbo tax and H&R Block online ? ?
Amazing how scummy the IRS was for not mentioning this a lot earlier. At least if people knew about this in the start of December they could have sold a few more things but of course the IRS doesn’t want to lose any of those future tax dollars 🤦🏻♂️
@@ItsDan123 Yes, because if you're just a person trying to generate funds for Christmas by selling things at a loss or breaking even, then you could have tried to bring in some extra money.
@Daniel Loughmiller exactly. However, when you do that via PayPal or eBay you'd get the 1099-k under the new rules and have a headache to deal with at tax time. And NO ONE has kept receipts and records of the random stuff they might sell to prove they're not tax cheats.
Hey Mark! Thanks for the great information. If we don't receive a 1099k does that make me ineligible to take any deductions from my reselling business?
Please do a video on how to differentiate between a hobby and buisiness on selling on Ebay. I have a full time job and do Ebay on the side for fun. Is Ebay a business or hobby??????
I sell household items and craft items for on average 50% less than their actual (not exaggerated) value. I just want this stuff out of my house in a hurry. Can I record this as a loss if Mercari or other platform sends me a 1099?
What do I do if I have no other taxable income. I made about $2,500 (without deductions) selling on Poshmark. I am a college student, but I sell just to make a little income. I am not sure how to report these earnings without a 1099. I live in California. Thank you for any help you can provide.
Why should I be taxed for selling my old junk on eBay? I'm taking a loss on all of it. Do I have to dig up receipts which are most likely lost? Yep, gotta put those new 80,000 tax payer funded IRS agents to work. Thanks Joe!
What about the re-sale of items paid for by taxed income and sold for less than originally purchased? Income and sales taxes were paid prior to and at the time of the original purchase. Assume for the sake of this question the item is being sold for the same price or less than when originally purchased; so a loss versus a profit.
The IRS doesn't know the original cost, so they don't know if you will show a profit or loss. They will just be looking for the 1099 number to be reported but it's up to you to include the deductions.
@@notyourdadscpa The resale of items at a presumed loss over original cost for which taxed income and sales taxes had been already paid, was a particular instance of heart ache during the 1980's emphasis on tax collection; both on some States' and the Federsal IRS level. I know that there was some clarification amd guidance offered by some Federal Courts; multiple and at multiple court levels. I only followed so much but, I do know that the prohibition of double taxation played a prominent roll and last I know of, it was decided you couldn't be charged IRS income tax on the sale of the family car which had already been purchased using IRS taxed dollars (im pretty sure it was a car that provided the subject matter of the decision); even if that car sold for a premium amount for that particular used car,, there was no profit as long as the resale price was the same or less than the original purchase price. Brush up on the issues related to bartering too. My guess is an emphasis on bartering income will rear its ugly head again. Especially if the bartering clubs rise up again. The classic example is when a professional exchanges thier services for someone else's services (ie legal for accounting) at basically on par or when they exchange services for a pro-rated, lesser costing services like landscaping, mechanical, or diy projects. I think bartering got left with services being assigned a market rate value per hour and those providing services for a received value were considered to have earned income. I seem to remember there was a volunteer based, 501c organization(s) that got nailed for something along the lines of money laundering. Either which way, bartering got less liency is most of the decisions.
So wait! If you sell on a platform like posh or kidizen and you send the money from those platforms to Zelle, wouldn’t you get the 1099k from the platform? Wouldn’t the 1099k from the payment entity basically be the same as the on from the platform??
If my state already adopted a $600 threshold then whatever the federal gov does doesn’t matter correct? I’m still going to get a 1099 because if my states threshold? I’m in Virginia. Thanks for the video
Hi, and thanks for your all your helpful videos. What would you do in this scenario if you (don't recieve a 1099 K)? You sold old personal tems on eBay and made $6500 from the sales. You figure you originally paid $10,000 for them years ago, plus you paid shipping and eBay fees. totaling $2000 for a total cost of $12,000. A few of the items sold you make a profit of $500, but overall you are still at a loss considering everything together. Knowing you can't deduct a loss on personal items, should you just claim the $500 or do you claim your total in sales add up what you originaly paid for everything including shipping/fees and still consider it all a loss even though you made a profit on on those few items totaling $500? How would you treat this scenario? I heard you should only claim the $500 on your taxes and ignore the items you has a loss on? Or should you not claim anything since it was all a loss and you never received a 1099 k?
Does this delay apply to Airbnb? They have operated under the 20k, 200 transaction threshold up until now. I always report my Airbnb income so I can take deductions so I was just curious if this applied to them in addition to PayPal, etc.
SHADOW OPPOSITION ORG? - Hey, The Coalition for 1099-K Fairness does not appear to be a functioning organization. I tried to signup - but they don't list my state (MA) and have 2 MS's. They've no social media presence & have never replied to my 2 messages (contact form). WTH?
You can pull all of your info from seller hub, but you also need to be keeping track of things like your other expenses (COG, supplies, miles, etc.) to reduce your tax liability. I've done it the past 2 years without receiving a 1099. I just use Excel to track my information and produce the numbers needed to fill out the schedule C.
So if I use a business account to pay someone who helps in my business, do I need to send them a 1099 myself or will the 1099-k eliminate the need for the 1099-NEC?
Can I add my zelle busines expenses to my deductions? I bought merchandise for my business originally via PayPal but my vendors were getting charged 3% so they mentioned to just zelle them upon receiving.
The platforms are definitely not always consistent with when they send you 1099s. If it's business income you would have needed to report anyway, it won't change anything you'll still need to report it on your tax return.
Great question - I just got a 1099 in VA for over $600 in sales on Poshmark. These are all personal items I sold. Trying to figure out what to do with it! Looks like Turbo Tax allows you to enter, but you have add each sale individually. . .ugh!
Not likely. Your standard deduction will likely wipe out all of your income for income tax purposes. And you only have self-employment tax on profit over $400. So if your profit is less than that, no need to file. Unless you have a loss that you want to carry forward to future years.
This will put Venmo and CashApp out of business - people will stop using it to pay their friend for dinner or their neighbor for whatever - then the govt can come in with the almighty digital currency and make it sound like a solution.
By Him stating the threshold was delayed until 2023 literally like 10 times is a very clear way of saying all sales for 2022 year will still be at the previous $20k threshold.
Hello, I’m confused after watching the video and reading articles online. The taxpayeradvocate.irs.gov website mention The IRS is delaying lowering the threshold for Form 1099-K reporting by a year. The $20,000 and 200 transactions thresholds remain in place through December 31, 2023. Is this information true? Is 2023 threshold $600 or $20,000?
