No $600 side hustle tax disclosure for 2023

Nigel said:
Sauce?
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https://www.journalofaccountancy.co... Friday announced,for the 2022 calendar year.

I guess they figured out what a clusterfuck it'll be for us, and the IRS to deal with the confusion, and backlogs. Dumbasses. Biden is a real fucking genius dreaming it up to begin with. It only screws the middle class, or, in a lot of cases, lower class peddling stuff on Ebay to make ends meet.

I know what my New Year's resolution needs to be.. Close my Reverb account, and be done with it.
 
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I'm glad I ignored it in the first place. I might be a little pissed if I did anything different based on the expectation. I just don't move that much stuff and never on Reverb so it didn't affect me. But it does affect some people so good that it got pushed and hopefully gets shitcanned or at least greatly modified.
 
This should have been fucking announced before 8 days left in the fucking year.

Ive spent waaaay too much time explaining why i would only accept PPFF this year so i would be compliant only for this bullshit to be addressed before it could benefit anyone.

Plus the morons amongst them will now think i was lying. I dont give a shit, red or blue, this country is run by dumbfucks too untalented to do well in the private sector.
 
Thats good but its also bullshit since it kept me from selling on ebay, not wanting to get a 1099. I did sell around 3k so at least I wont worry about that. They are trying to get it to 5-10 k for 2023 which is more reasonaable. 600 dollars is just stupid
 
I wonder if this means that Reverb, eBay etc will not send the 1099s for 2022 or if the IRS will simply ignore them. Seems like if the payment processors still send them it could lead to another mess altogether
 
T Wilcox said:
yep, or 200+ transactions
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I think it has to be both, atleast the way I'm reading it. I believe it's $20k AND 200 transactions.

I think they'll either raise it to the proposed $5000, or go back to the $20k altogether. It was the stupidest idea ever, and a disaster from the get-go. I believe both Ebay and Reverb, (and several others), have been involved in trying to stop it since day one. Both are thriving, but customers are walking and leaving these platforms, which hurts their bottom line too.

Love or hate Ebay, Reverb, or Etsy, these are big players that I'm sure are making a statement.
 
With 87,000 new IRS agents, don't worry they will just go back to the drawing board to fuck things up even worse.

But in plain terms, since I didn't really understand what the proposed tax filing laws were for selling stuff online because I don't sell too much stuff...does this mean I can sell one or two guitars on ebay and not have to claim them on my taxes?
 
Metalhex said:
With 87,000 new IRS agents, don't worry they will just go back to the drawing board to fuck things up even worse.

But in plain terms, since I didn't really understand what the proposed tax filing laws were for selling stuff online because I don't sell too much stuff...does this mean I can sell one or two guitars on ebay and not have to claim them on my taxes?
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If u sold more than $600 total of stuff on reg paypal, reverb, ebay, etc anything above the $600 is considered INCOME and would be taxed at ur full income tax rate.

UNLESS - if u had receipts to show how much u paid. Then you would pay income tax on any profit you made. BUT, unfairly, losses would NOT be considered deductible.

Its a shit law designed to get people that sell on ebay for a living but fucks everyone with a hobby interest in anything. This same convo is occurring in thousands of forums today.
 
tonedover said:
If u sold more than $600 total of stuff on reg paypal, reverb, ebay, etc anything above the $600 is considered INCOME and would be taxed at ur full income tax rate.

UNLESS - if u had receipts to show how much u paid. Then you would pay income tax on any profit you made. BUT, unfairly, losses would NOT be considered deductible.

Its a shit law designed to get people that sell on ebay for a living but fucks everyone with a hobby interest in anything. This same convo is occurring in thousands of forums today.
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Ok, but now it's no longer a law?
 
tonedover said:
If u sold more than $600 total of stuff on reg paypal, reverb, ebay, etc anything above the $600 is considered INCOME and would be taxed at ur full income tax rate.

UNLESS - if u had receipts to show how much u paid. Then you would pay income tax on any profit you made. BUT, unfairly, losses would NOT be considered deductible.

Its a shit law designed to get people that sell on ebay for a living but fucks everyone with a hobby interest in anything. This same convo is occurring in thousands of forums today.
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You can assume a sole proprietorship, not have a business tax ID, and still write off your business expenses or capital losses. The tax process just gets more lengthly to determine business expenses from capital losses and the extra paperwork that goes with it. You’ll want receipts for anything you’re claiming losses and gains on before you file taxes.

I’m not a tax professional but have looked into this in depth and there’s nothing saying that if the government is treating you like a sole proprietorship that you can’t turn around and write off your expenses or capital losses.

For anyone asking you’re supposed to file any gains/profits on your taxes anyway even if 1099s aren’t involved. The feds were trying to digitize the process but $600 transaction limits treat every single person as a sole proprietorship in business of selling goods or services by default.
 
Metalhex said:
Ok, but now it's no longer a law?
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Its part of tax code, so law. But the release today said they are now implementing it for 2023 instead of the current tax year.

Above its mentioned that the amounts may change, but i have yet to see anything substantial to that end. I know there was a bill proposal being made by members of both parties to fix this last april and it never went anywhere.
 
glpg80 said:
You can assume a sole proprietorship, not have a business tax ID, and still write off your business expenses or capital losses. The tax process just gets more lengthly to determine business expenses from capital losses and the extra paperwork that goes with it. You’ll want receipts for anything you’re claiming losses and gains on before you file taxes.

I’m not a tax professional but have looked into this in depth and there’s nothing saying that if the government is treating you like a sole proprietorship that you can’t turn around and write off your expenses or capital losses.

For anyone asking you’re supposed to file any gains/profits on your taxes anyway even if 1099s aren’t involved. The feds were trying to digitize the process but $600 transaction limits treat every single person as a sole proprietorship in business of selling goods or services by default.
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Based upon my reading and talking to my accountant, i came to the same conclusions. The problem lies in “the receipts”. If hadnt and didnt know that i needed to keep receipts for years and now suddenly need them in case of audit, its just a shitty law with no transition….
 
Like “they” need more numbers to sift’ through?.
You cannot get any irs agent on the phone.
Secret?
-You can, you just have to transfer yourself to the wrong extension and you might get an actual employee as opposed to a call center
that cannot talk about anything other then instructions to go online and find out for yourself.
The irs is in a state like Bam Margera.
Hair on FIRE.
 
tonedover said:
Based upon my reading and talking to my accountant, i came to the same conclusions. The problem lies in “the receipts”. If hadnt and didnt know that i needed to keep receipts for years and now suddenly need them in case of audit, its just a shitty law with no transition….
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it is only an issue if you get audited… and the 87000 agents are on,y going after the millionaires and billionaires:sneaky:

in all seriousness… being a CPA, I’ve always saved receipts on everything, so this isn’t an issue for me. There really isn’t a change in the law. You always had a legal requirement to report any gain . The 1099 just provides them an enforcement mechanism. You could find $100 on the ground and you are legally required to report it on your tax return… but who would ever know.
 
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