Corey James
Well-known member
FJB
Alright, tax experts... Its almost 1099k time, what am I in for?
Erock
Well-known member
I wish that worked for me. I've ended up with more gear than I can turn on and seriously play in a month. Anything I sell, is usually to friends, at a HUGE loss, lol. Needless to say, I have some friends that will give me the shirt off their back as well.
Metlupass2
Well-known member
Ever since I got one for 15k I stopped accepting regular PayPal and stopped selling on reverb.
Soundstorm
Well-known member
glpg80
Well-known member
I gave a block letter 5150 to a friend 15 years ago. I’d rather friends use gear sold at a loss than try to break even online and risk damage or dealing with assholes with buyers remorse.
Erock
Well-known member
I gave a 6505+ version to a friend, he's paid me back ten fold in help I really needed with my house. Karma, lol.
glpg80
Well-known member
What people don’t realize is that these payment platforms take a cut of your money for added protections for intermediation if shit hits the fan when you use “goods and services”. When they make money off of your money, it’s actually a goods and services transaction with a service transaction tacked on top from the payment platforms. Because they’re making money off of your money, they by law have to document it and if they document it, then you’re required as well.
The reason they only want profits but at the same time you can’t write off all losses is because profits when using goods and services are just federal income reporting with accountability. It forces you to be accountable without the benefit of a complete business loss write off since you’re not monitoring inventory.
When you send money “friends and family” it’s labeled deceptively to try to trick you so that they can make their money with goods and services. There’s no protections offered for friends and family, so they don’t make a profit since there’s no service upcharge, and you don’t get the intermediation protection since friends and family shouldn’t have disputes. You’re still required by law to report profits if you sell something to a friend or family but there’s no accountability to hold you to it like goods and services does.
Zelle is the only platform that is excluded as its bank to bank and doesn’t touch a third party payment platform at all so all electronic transactions are easily monitored.
Some of us just don’t want to deal with 1099k’s and I always report profits if I sell items online and profit from it. I hate being treated as a sole proprietorship without a business ID when it’s actually an expensive hobby. It’s just not worth fighting over $50 since profits are usually small or rare for me.
The reason they only want profits but at the same time you can’t write off all losses is because profits when using goods and services are just federal income reporting with accountability. It forces you to be accountable without the benefit of a complete business loss write off since you’re not monitoring inventory.
When you send money “friends and family” it’s labeled deceptively to try to trick you so that they can make their money with goods and services. There’s no protections offered for friends and family, so they don’t make a profit since there’s no service upcharge, and you don’t get the intermediation protection since friends and family shouldn’t have disputes. You’re still required by law to report profits if you sell something to a friend or family but there’s no accountability to hold you to it like goods and services does.
Zelle is the only platform that is excluded as its bank to bank and doesn’t touch a third party payment platform at all so all electronic transactions are easily monitored.
Some of us just don’t want to deal with 1099k’s and I always report profits if I sell items online and profit from it. I hate being treated as a sole proprietorship without a business ID when it’s actually an expensive hobby. It’s just not worth fighting over $50 since profits are usually small or rare for me.
Metlupass2
Well-known member
I think 2021