New tax question

shrevecity · 01-03-2022, 03:46 PM

We know lots of changes havr been made. Anyone hear of them forcing everyone to use the accural method and no longer are allowing the cash method

RufussCkingston · 01-03-2022, 04:14 PM

https://bizfluent.com/info-8750129-i...ual-basis.html

If you carry inventory (cards), then you must use accrual.

But in reality probably not a big deal as you will only record sales when you get paid (since they basically happen at the same time, unless you use an auction house that delays payment, only a year end issue if payment is the following year), and you pay your bills when you get them.

Budler · 01-03-2022, 04:16 PM

Who is Them? (GOV) OK

When talking about everyone are you talking about every person who sells cards? (Business) OK

If you come to my house and give me cash for cards, how are they going to force me to report it. I will just take the money and go out to eat and pay cash. No paper trail. (but I'm not a business just a person that has a lot of cards willing to sale)

Yes, there are people that would love to get rid of cash so they could see every transaction that goes on between everyone.

shrevecity · 01-03-2022, 04:39 PM

I found my answer it was a miscommunication between a friend of mine and his accountant that raised my questions. I have always done accural, but he does cash.

RufussCkingston · 01-03-2022, 09:49 PM

Quote:

Originally Posted by Budler

Who is Them? (GOV) OK

When talking about everyone are you talking about every person who sells cards? (Business) OK

If you come to my house and give me cash for cards, how are they going to force me to report it. I will just take the money and go out to eat and pay cash. No paper trail. (but I'm not a business just a person that has a lot of cards willing to sale)

Yes, there are people that would love to get rid of cash so they could see every transaction that goes on between everyone.

Everyone is all peeps who file a Schedule C for their card transactions (as in they do it as a business/hobby for profit)

If you get cash, you just put it in the mattress. You aren't a business until you admit it or create a paper trail that divulges it (like getting 1099's) But if you recorded that card in your inventory as a cost when filing taxes, then when you get audited, you'll be asked where did that card go... my dog ate it!

Doing the accrual method has nothing to do with the removal of actual cash, it is really about recognition of accounts payables and accounts receivables

01-03-2022, 03:46 PM	#1
shrevecity Member Join Date: Jul 2013 Posts: 28,059	New tax question We know lots of changes havr been made. Anyone hear of them forcing everyone to use the accural method and no longer are allowing the cash method

01-03-2022, 04:16 PM	#3
Budler Member Join Date: Aug 2014 Location: Longmont, Co Posts: 1,565 budler	Who is Them? (GOV) OK When talking about everyone are you talking about every person who sells cards? (Business) OK If you come to my house and give me cash for cards, how are they going to force me to report it. I will just take the money and go out to eat and pay cash. No paper trail. (but I'm not a business just a person that has a lot of cards willing to sale) Yes, there are people that would love to get rid of cash so they could see every transaction that goes on between everyone. __________________ Looking for ALL players from Nebraska. Pro/College uniforms (mainly ones I do not have) Last edited by Budler; 01-03-2022 at 04:20 PM.

01-03-2022, 04:14 PM	#2
RufussCkingston Member Join Date: Aug 2020 Location: Uranus Posts: 1,303	https://bizfluent.com/info-8750129-i...ual-basis.html If you carry inventory (cards), then you must use accrual. But in reality probably not a big deal as you will only record sales when you get paid (since they basically happen at the same time, unless you use an auction house that delays payment, only a year end issue if payment is the following year), and you pay your bills when you get them.

01-03-2022, 04:39 PM	#4
shrevecity Member Join Date: Jul 2013 Posts: 28,059	I found my answer it was a miscommunication between a friend of mine and his accountant that raised my questions. I have always done accural, but he does cash.