Breaking News: Off the hook another year PayPal $600 rule postponed again.

It’s nuts. You pay tax on a new item with pay that’s been taxed. You then sell it to someone who is buying it with pay that’s been taxed and they have to pay tax on the sale. When that transaction is completed, you again pay tax on sales proceeds.
 
scottosan said:
It’s nuts. You pay tax on a new item with pay that’s been taxed. You then sell it to someone who is buying it with pay that’s been taxed and they have to pay tax on the sale. When that transaction is completed, you again pay tax on sales proceeds.
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So you don't actually pay federal taxes on items sold unless you make a gain. If you sold at loss, or broke even you don't owe the IRS anything.

Now, is it a PITA yes. You must keep records, and file extra forms, which will cost you more if you're having someone prepare your taxes.

I have an interesting one though. I owned part of a company that we dissolved. We split the assets between the partners, I got a truck that the company owned. I had to pay taxes on it to put it in my name. Basically I had to pay taxes on it twice, once when the company I owned part of bought it, and then again when I transferred it into my name 🤷‍♀️
 
CrazyNutz said:
So you don't actually pay federal taxes on items sold unless you make a gain. If you sold at loss, or broke even you don't owe the IRS anything.

Now, is it a PITA yes. You must keep records, and file extra forms, which will cost you more if you're having someone prepare your taxes.

I have an interesting one though. I owned part of a company that we dissolved. We split the assets between the partners, I got a truck that the company owned. I had to pay taxes on it to put it in my name. Basically I had to pay taxes on it twice, once when the company I owned part of bought it, and then again when I transferred it into my name 🤷‍♀️
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Most people aren’t disciplined in book keeping and didn’t anticipate the federal money grab when they bought their items. Not sure the honor system is going to fly with the IRS.
 
This was all Biden's handy work, looking to further fuck the middle class. Figured he'd lose votes when people starting cussing him at tax time.

I think the house put a hold on his 87,000 new IRS agent funding.

Honestly, if he's looking for people to pay their fair share, he's been barking up the wrong tree from day one. How about he starts with Hunter, and EVEN HIMSELF. Never declared his bribery money as income, did he?

Fucking cockroach.
 
napalmdeath said:
This was all Biden's handy work, looking to further fuck the middle class. Figured he'd lose votes when people starting cussing him at tax time.

I think the house put a hold on his 87,000 new IRS agent funding.

Honestly, if he's looking for people to pay their fair share, he's been barking up the wrong tree from day one. How about he starts with Hunter, and EVEN HIMSELF. Never declared his bribery money as income, did he?

Fucking cockroach.
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Speaking of fucking the middle class, how about he also starts with rescinding Trump’s 2 TRILLION dollar tax cut, of which 85% went to the top 1% and corporations?
 
We are one of those corporations and the tax saving’s enabled us to be able to give our employees large raises and buy more equipment that helped those companies and their salespeople get nice commissions. I guess we could just give that money back to the great stewards of money that is our Federal Government.
 
To me it's a bunch of pants-wetting over nothing. It's a change in their reporting threshold, not a change in our actual tax burden. We're on the hook for the same things regardless of the 1099, and none of that is even remotely new.

I tend to acquire more gear than I sell each year. Even when I don't have gig revenue and it's just a "hobby", it's still a net loss, which I report and deduct. I also capitalize guitars, amps, and things like that, so I can carry depreciation on them, which is also deductible. Most of my local musician buddies don't report any of it, and they're probably leaving money on the table by doing so. Whatevs. I'm happy to find cover in their over-payment.

There's also this: if I don't want my personal gear sales treated as commerce, then I DON'T SELL IT COMMERCIALLY. Seriously, some of y'all seem really perplexed by why selling your shit commercially doesn't give you the same autonomy as selling it privately.
 
justin said:
We are one of those corporations and the tax saving’s enabled us to be able to give our employees large raises and buy more equipment that helped those companies and their salespeople get nice commissions. I guess we could just give that money back to the great stewards of money that is our Federal Government.
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Oh, you’re the one?
How about 85% of that tax cut going to the middle class, and everybody gets a raise?
 
Beyond Black said:
Oh, you’re the one?
How about 85% of that tax cut going to the middle class, and everybody gets a raise?
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I am middle class. A lot of small businesses are S-corps owned by middle class people like me. The pass through income tax break was and is huge for us. We collectively also employ over 61 million people. Would you rather have a tax break or a job?
 
justin said:
I am middle class. A lot of small businesses are S-corps owned by middle class people like me. The pass through income tax break was and is huge for us. We collectively also employ over 61 million people. Would you rather have a tax break or a job?
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The top 1/10 of the top 1% own more wealth than the bottom 90% in the USA. There’s a long list of Fortune 500 companies that have been paying little to no taxes for years while posting RECORD PROFITS.
The average billionaire pays 8% income tax, while I’m paying 28%. This is a system that‘s rigged by the wealthy for the wealthy, while we take it up our asses like good little worker bees. And I’m not lumping small businesses into this group. More power to them if they happened to reap the benefits of that tax cut. And fuck Biden too for even considering reducing the limit from $20,000 to $600 for reporting online sales. Hopefully that gets pushed indefinitely.
 
Beyond Black said:
The top 1/10 of the top 1% own more wealth than the bottom 90% in the USA. There’s a long list of Fortune 500 companies that have been paying little to no taxes for years while posting RECORD PROFITS.
The average billionaire pays 8% income tax, while I’m paying 28%. This is a system that‘s rigged by the wealthy for the wealthy, while we take it up our asses like good little worker bees. And I’m not lumping small businesses into this group. More power to them if they happened to reap the benefits of that tax cut. And fuck Biden too for even considering reducing the limit from $20,000 to $600 for reporting online sales. Hopefully that gets pushed indefinitely.
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That’s not quite the case. I think many people misinterpret this. They earn 22% of the income but pay 42% of income taxes. They pay more income tax than the bottom 90%. Many billionaires don’t have their worth in liquid cash. Much of their wealth is tied up in business that creates jobs, not only domestically, but internationally. It’s a double edged sword.

But, here’s the thing. Personal income tax accounts for only 48.5% of the federal budget. Another 11.4% are from corporate tax. Another 34.9% for payroll tax(social security and unemployment) which burden is split 50/50 between the employer and employee.

As for record profits, we’re talking about publicly traded companies in much of these cases. In which, when these companies do well, our retirements should do well. Unfortunately index funds are diverse, and if some of these companies weren’t carrying the weight to offset losses in other sectors, we’d have no-retirement left. Just my 2 cents.



https://federalbudgetinpictures.com/do-the-rich-pay-their-fair-share/#:~:text=In 2020, the latest year,percent combined (37 percent).
 
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scottosan said:
That’s not quite the case. I think many people misinterpret this. They earn 22% of the income but pay 42% of income taxes. They pay more income tax than the bottom 90%. Many billionaires don’t have their worth in liquid cash. Much of their wealth is tied up in business that creates jobs, not only domestically, but internationally. It’s a double edged sword.

But, here’s the thing. Personal income tax accounts for only 48.5% of the federal budget. Another 11.4% are from corporate tax. Another 34.9% for payroll tax(social security and unemployment) which burden is split 50/50 between the employer and employee.

As for record profits, we’re talking about publicly traded companies in much of these cases. In which, when these companies do well, our retirements should do well. Unfortunately index funds are diverse, and if some of these companies weren’t carrying the weight to offset losses in other sectors, we’d have no-retirement left. Just my 2 cents.



https://federalbudgetinpictures.com/do-the-rich-pay-their-fair-share/#:~:text=In 2020, the latest year,percent combined (37 percent).
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Don't go letting facts get in the way of the boo-hoo narrative now..... lol

Thank you for a breath of fresh air!
 
scottosan said:
That’s not quite the case. I think many people misinterpret this. They earn 22% of the income but pay 42% of income taxes. They pay more income tax than the bottom 90%. Many billionaires don’t have their worth in liquid cash. Much of their wealth is tied up in business that creates jobs, not only domestically, but internationally. It’s a double edged sword.

But, here’s the thing. Personal income tax accounts for only 48.5% of the federal budget. Another 11.4% are from corporate tax. Another 34.9% for payroll tax(social security and unemployment) which burden is split 50/50 between the employer and employee.

As for record profits, we’re talking about publicly traded companies in much of these cases. In which, when these companies do well, our retirements should do well. Unfortunately index funds are diverse, and if some of these companies weren’t carrying the weight to offset losses in other sectors, we’d have no-retirement left. Just my 2 cents.



https://federalbudgetinpictures.com/do-the-rich-pay-their-fair-share/#:~:text=In 2020, the latest year,percent combined (37 percent).
Click to expand...

You're wasting your keystrokes. The people that go on these rants don't understand math or liquid assets vs equity. They're the same people that think taxing unrealized gains is a great idea and will continue to do so until they start getting taxed on their retirement account interest then it will be unfair and how dare the government etc etc. It boils down to the attitude that anyone making more than I do isn't paying enough and I'm paying too much.
 
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