Looks like the tax rule that would require paying taxes on personal sales as low as $600 is being postponed.
I mean, IANAL (@dstrauss takes that one) but I believe this was only for businesses. Now whether one can trust the IRS to properly understand the difference between what constitutes a business and what is just me selling my old laptop? Yeah they could just go ahead and delay this infinitely.
Even when I think what a “crock of sh!t” this whole thing is by the IRS, I’m reminded that conservative Texas’ own Comptroller was considering demanding sales taxes from garage and yard sales - government must be bankrupt (and I don’t just mean morally)…
This is why I am un utter pragmatist when it comes to politics. Bad people hide behind party affiliations…
Or trying to have PayPal, et al, decide whether or not that payment to your account was a business transaction or a ‘private purchase’ kind of thing? No, they were going to mark everything as taxable and let the customer sort it out with the IRS.
Unfortunately you are probably right Ted - and have been doing so all year already…
I don’t think so, or at least eBay didn’t seem to think so. When I sold my X1T3 on eBay I was told in no uncertain terms that I would have to file some form with the IRS and pay taxes on the sale amount, unless I could prove that I sold the item for less than I bought it for. It was accompanied by messages telling me to lobby on their behalf to fight this new bill. So if that’s the one that’s delayed, I’m pretty happy.
What eBay told me at the time:
As of Jan 1, 2022, the IRS now requires us to file and send a Form 1099-K to everyone who sells $600 or more. Since you’ve made $600 or more in sales this year, we’ll need your full 9-digit Social Security number (SSN) or Individual Tax Identification Number (ITIN) to send you your 1099-K.
Here’s eBay’s take on the recently announced delay:
Yikes. So they are just going to make everyone else deal with it.
Ah, I got one of those earlier this year and that’s where I got the idea that it was the cumulative amount over $600 and not just individual items that go over $600 each. So it does count smaller sales, adding the amounts on top of the total for the year… according to eBay’s interpretation anyway.
What a pain. So glad it has been delayed.
Right? And I hope that with this extra time an amended version can be drafted.