Classified sales in the new tax era.

[furb]

I sell some stuff on the classified and eBay. It’s not really profitable. If I buy five saws and want one, I try to sell the other four to offset the price of the one I’m keeping. It works out but by the time I’d factor in expenses I’m in the hole. I don’t get receipts when I buy these generally so I’d be liable for the whole amount the four saws sold for. Example, I buy five parts saws for $250, drive 50 miles to get them and sell four of them for $250 through PayPal I’d pay tax on $250 minus $.55 per mile. It looks like friends and family are exempt from reporting. Locals are generally flakes to sell to. Does anyone with a better understanding have a plan? I have a 15 year collection to shrink but don’t know how to proceed with reporting if it becomes necessary.

 

[Firewood Hoarder]

The powers that be made tax money on these items when they were manufactured. They charge tariffs if they were imported. They made more tax money when they were sold to the buisness that put them in inventory for retail. They made money again when a consumer purchased them for personal or professional use. Every gallon of fuel; every new replacement part also had additional taxes added to it. They've made enough off of you already.

 

[Ronie]

I think as long as ebay doesn't have your social security number they can't issue you a 1099-K and it won't be reported to the IRS. I could be wrong but if your selling on ebay it would be worth looking into.

 

[Ronie]

I just did a quick look around and it looks like starting next year you will have to give ebay your social security number if you want to sell.

 

[Ronie]

It looks like Paypal will also be sending you a 1099 if you receive more than $600 a year paid to you with goods and services.

 

[furb]

I guess do everything goods and services. I was told by someone just don’t report it. The irs will catch and negotiate a tax amount. He said with the penalty and tax it’s still cheaper than if you have to claim the entire sales amount.

 

[furb]

The powers that be made tax money on these items when they were manufactured. They charge tariffs if they were imported. They made more tax money when they were sold to the buisness that put them in inventory for retail. They made money again when a consumer purchased them for personal or professional use. Every gallon of fuel; every new replacement part also had additional taxes added to it. They've made enough off of you already.

The amount of money on used car sales is ridiculous. Every time that car sells its 6%. It should be new cars only.

 

[Firewood Hoarder]

It's against my religion to give money to bullies and thieves.

 

[ktmtigger]

Yeah im not claiming anything besides what my w2 says and will not be using paypal

Sent from my SM-G973U using Tapatalk

 

[jacob j.]

It's against my religion to give money to bullies and thieves.

That's nice in theory but the Federal, state, and local governments are finding ever increasing ways of reaching into citizens' pockets. I just had a local
bond measure added to my property taxes equaling about another $117/year I get to pay for a neighboring fire district which doesn't even respond to
the area I live in, not counting the $356/year I already pay for the fire district that covers my area. The bond for the neighboring district came about
because of financial mismanagement on the part of the fire board for that area.

This tracking of transactions over $600 is just another cash grab from a party that has always engaged in tax and spend policies. As to the selling
of saws and such, if it's a trusted member here, I go with friends and family or a money order, whether I'm the buyer or seller. I have a checking
and two savings accounts and try to keep cash deposits at $500 or less. If I sell something more valuable, I can split the deposits and keep the
amounts low.

 

[Stevetheboatguy]

My friends call me cash..........




Steven

 

[whitesnake]

Cash is king

 

[Lnk]

Can you imagine selling a neighbor a saw, then he sells it back to you, and this happens 25 times? Does the government really expect to collect tax on each of those transactions? I bet an argument could be made that it is an overreaching restriction on commerce.

Not that I would ever involve government into any private transaction. They can kiss my axe!

 

[AVB]

There is a good reason why I keep most my Federal Reverse notes out of the banks. It is a lot harder to track it.

Since I do run a business I generally don't pay taxes on purchases but sales are a different thing. At least it is not double taxation. I do report my sales quarterly and pay sales taxes on that figure. With expenses figured in at the end of the year I don't pay a lot income taxes.

Taxes is however one of the reasons I don't try build the business beyond a certain level.

Beside the darn IRS still hasn't paid the $3,200 that the government promised to pay me in stimulus money. We see how well it goes this next income tax payment season as I am not sending any money because they owe not the other way around.

I did make the mistake of investing the first $1,200 and then never received it. At least I didn't do the same with the $600 or the $1,400 payments promised and never received.

 

[P.M.P.]

My friends call me cash..........




Steven

 

[Duce]

You people cannot talk about this, on this forum. Just pay your fair share!

 

[Lnk]

You people cannot talk about this, on this forum. Just pay your fair share!

Problem is, I have been paying way more than my fair share all this time. I have a farm, and could get one of those tax exemptions, but I don't, as the taxes I pay support my county and state. We are not encouraging tax evasion, just tax avoidance. We would not even think of violating any laws, just for the record. I do get your point though.

 

[furb]

You people cannot talk about this, on this forum. Just pay your fair share!

Not to get off topic but... If you were on unemployment last year your first $10k is forgiven on taxes and some people made more on unemployment than working. If you did go to work, bought a saw for $800, sell it used for $650 without proof of original purchase you are liable for that entire amount. The fair share isn’t too fair when you look at it that way. I think that’s why there’s so much push back against the reporting change. Probably right about not talking about this.

 

[dahmer]

You people cannot talk about this, on this forum. Just pay your fair share!

I’ve been wrong before, my wife always tells me that but I don’t think @Duce was defending the IRS. It’s hard to detect sarcasm in the printed format.

 

[Duce]

I’ve been wrong before, my wife always tells me that but I don’t think @Duce was defending the IRS. It’s hard to detect sarcasm in the printed format.

Believe they are the only form of legal extortion. My stepfather had a meeting with them every year after he won his tax case.