IRS & 2023 Taxes

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glpg80

glpg80

Well-known member
This is a friendly heads up for all of our USA user base that the new $600 limit for online sales of goods and services not using FF or exclusively Zelle (see video as to why) will go into effect this tax season (all online sales from January to December for the 2023 year). You have to report profits from the 1099k to the IRS (and have receipts to back them up) or you’re up shit creek with the IRS.

Last year was a trial run without reprocussions if you didn’t do so. This year they’re not fucking around.

I’m also bummed to hear tax software is going to cost way more if you say you have to report a 1099k which sucks. I’m not a tax pro but I think it’s also a tax write off ?

 
More like a kick in the Dick.
 

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At least he acknowledged how futile and wasteful this is wrt IRS resources and our tax dollars at work. I picked (as I presume many of us did) a good year to not sell much.

And I know he said “it’s just the way it is” but it doesn’t seem right that the IRS can assume you obtained all those clothes (in his example) for free. That is an absurd assumption and I still think if it went to court, the court would agree.
 
I couldn’t watch him anymore as he is hard to listen to. Did he say you could take a loss if you sold the item for less than what you paid?
Moral… Keep your receipts boys. Nothing wrong with being a hoarder.
 
You were supposed to be paying the whole time.

This combined with selling, shipping, and scammer hassles are going to give face to face deals new life. Like going back to the 1980's. At least for small sellers and hobbyists.
 
@SpiderWars
You could open a business of making retroactive receipts for people (for a nominal fee of course). Bam! Scorching hot Gorilla amp for, hmmmmm let’s say 14,000 dollars?? That should offset the wizard sale ?.
 
VonBonfire said:
You were supposed to be paying the whole time.

This combined with selling, shipping, and scammer hassles are going to give face to face deals new life. Like going back to the 1980's. At least for small sellers and hobbyists.
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Although you’re not wrong, they basically turned every American into a sole proprietorship with this law whether the person knows it or not and in doing so, has legal ground to go after your profits if you don’t book keep like a sole proprietorship. The drop from 20k to 600 in a year is the large differentiator from then and now.
 
SpiderWars said:
I picked (as I presume many of us did) a good year to not sell much.
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Meh, maybe I spoke too soon. Pickups and pedals add up. I just checked my PayPal and I have $2102 across 21 transactions…all of which were for no profit. In addition to those piddly sales also sold a guitar for $1067 but after fees/shipping that was a loss. So $3169 total.

So apparently they expect me to do a 1099k for 22 transactions all of which were a loss and not taxable. And then someone at the IRS has to go thru all that.

My time and your time is money. All these Americans spending all this time (= money) plus all the tax dollars to pay the IRS for going thru literally billions of <$100 transactions that were not taxable anyway. Dumb as fuck.
 
SpiderWars said:
Meh, maybe I spoke too soon. Pickups and pedals add up. I just checked my PayPal and I have $2102 across 21 transactions…all of which were for no profit. In addition to those piddly sales also sold a guitar for $1067 but after fees/shipping that was a loss. So $3169 total.

So apparently they expect me to do a 1099k for 22 transactions all of which were a loss and not taxable. And then someone at the IRS has to go thru all that.

My time and your time is money. All these Americans spending all this time (= money) plus all the tax dollars to pay the IRS for going thru literally billions of <$100 transactions that were not taxable anyway. Dumb as fuck.
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I don't think you have any reason to file unless you're running a business and want to show a loss. Keep your receipts in case you are audited. I'm not an accountant but my accountant likes to remind me that they are looking for people making 20-30-40k profit and not filing on it. Enough to fly under the radar and still make a living or side profit. People who don't report, year after year. What you are describing is a waste of time for an auditor so I really doubt you have much to worry about if your receipts and sales show a loss.
 
VonBonfire said:
I don't think you have any reason to file unless you're running a business and want to show a loss. Keep your receipts in case you are audited. I'm not an accountant but my accountant likes to remind me that they are looking for people making 20-30-40k profit and not filing on it. Enough to fly under the radar and still make a living or side profit. People who don't report, year after year. What you are describing is a waste of time for an auditor so I really doubt you have much to worry about if your receipts and sales show a loss.
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I don’t think you understand the gravity of this new law. If you use a third party platform and goods and services were used during checkout and you netted over $600 in received money under goods and services for the year, you legally have to file after you get a 1099k. The third party platforms are filing and if you don’t as well it will likely trigger an audit.

As in the video, remember that when it comes to the IRS, it’s guilty until proven innocent.
 
I appreciate the heads up. Figured this was the case and during the summer I combed through years of old emails for PayPal/eBay receipts. Pisses me off that PayPal and eBay don’t keep transaction histories past a few years on their sites like Reverb does. They should change that now with the changed tax laws.

It’s been years since I made a profit on a gear sale. Marketplace fees and increased shipping costs have pretty much guaranteed that. The IRS Is getting nothing more from me than a hell of a lot of documentation.
 
Ive been buying and selling old school car audio for years. This year has really put a pinch on everything. No one wants to buy something using friends and family, from an unknown seller, so we all have been adding the tax rate to our transactions, plus the paypal fees, which hampers deals. Its completely ridiculous the $600 amount. Uncle Sam wants that nickel you made lol.
 
scriptphase said:
I appreciate the heads up. Figured this was the case and during the summer I combed through years of old emails for PayPal/eBay receipts. Pisses me off that PayPal and eBay don’t keep transaction histories past a few years on their sites like Reverb does. They should change that now with the changed tax laws.

It’s been years since I made a profit on a gear sale. Marketplace fees and increased shipping costs have pretty much guaranteed that. The IRS Is getting nothing more from me than a hell of a lot of documentation.
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You’re welcome. Yeah you make a good point because if online brokers go back far enough purchase histories turn into original receipt resources for when you sell something in the future. You should be able to double dip and write off the procurement costs of buying something when you go to sell it too at least that’s what I think (I’m not a tax pro)
 
I sold around $10K worth of gear this year, and purchased even more - which the IRS doesn't track or care about, or take into account to offset what we sell.

I sell gear to fund new gear, doubtful anyone in the IRS considered that.
 
glpg80 said:
I don’t think you understand the gravity of this new law. If you use a third party platform and goods and services were used during checkout and you netted over $600 in received money under goods and services for the year, you legally have to file after you get a 1099k. The third party platforms are filing and if you don’t as well it will likely trigger an audit.

As in the video, remember that when it comes to the IRS, it’s guilty until proven innocent.
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So you file and show a loss. They aren't going to audit every 1099 recipient, It's not going to "trigger an audit" just because you have a 1099 from reverb. People often go years not filing 1099's before they are caught. There is no manpower to audit them all. At worst, you don't file, get caught and have to pay the taxes plus a penalty. I seriously doubt they are going to seek criminal charges for a guy who shows a few thousand bucks profit on his ebay/reverb but has receipts showing a loss when he is audited.
 
rsm said:
I sold around $10K worth of gear this year, and purchased even more - which the IRS doesn't track or care about, or take into account to offset what we sell.

I sell gear to fund new gear, doubtful anyone in the IRS considered that.
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You would have to set up a business with tax ID. Then everything runs through that business. And if you show the loss then you get a tax credit. Example; RSM LLC is a business that makes music. Under that business you can purchase and sell whatever is associated with it, gear, strings etc etc… lunch with client (although they are cracking down on that too). Anyway you sell 9000k in shit. You spent 12000 k in expenses. The forms go through itemization etc. and if the business loses let’s say 100 bucks for the year, then you owe nothing and apply to the following year. It’s not dollar for dollar. I AM NOT A TAX GUY. But I know a little about this. Btw. It costs money every year to keep business open and file taxes etc etc. sometimes the juice ain’t worth the squeeze. This is how you get a trailer for your gigging shows with a tax credit. Or an amp etc etc that is taxed a different rate that your personal taxes. It’s not illegal. You have to know the rules. Again. Sometimes the juice ain’t worth the squeeze.
 
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