IRS Delays $600 Gig Tax Rule

[wharfrat7624]

Good news…

https://www.zerohedge.com/political/...0-gig-tax-rule


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[LCM1223]

[TooManyCards76]

Unfortunately for me I just sold everything through eBay this year and kept receipts of my cost basis and grading fees for each sale. I’m pretty certain I blew by last years $20k and 200 transaction limits, so I’ll be doing a schedule c regardless. This is supposed to be a hobby, but I’ll probably spend 10 hours or more organizing a spreadsheet and receipts in a semblance of order so that if I ever do get audited I’ll have it all ready to go. I always spend more than I make because I’ll put the ultra high end stuff into my pc, it’s just a matter of organizing my costs/receipts.

[IND2FLA]

Originally Posted by TooManyCards76

Unfortunately for me I just sold everything through eBay this year and kept receipts of my cost basis and grading fees for each sale. I’m pretty certain I blew by last years $20k and 200 transaction limits, so I’ll be doing a schedule c regardless. This is supposed to be a hobby, but I’ll probably spend 10 hours or more organizing a spreadsheet and receipts in a semblance of order so that if I ever do get audited I’ll have it all ready to go. I always spend more than I make because I’ll put the ultra high end stuff into my pc, it’s just a matter of organizing my costs/receipts.

Are you always reporting Schedule C losses? Would that not give you concern of hobby vs. business?

[towerymt]

Originally Posted by IND2FLA

Are you always reporting Schedule C losses? Would that not give you concern of hobby vs. business?

Its not a loss if its still in inventory (the PC).

[atomic619jd]

Originally Posted by towerymt

Its not a loss if its still in inventory (the PC).

What do you use for the value of the cards you put into your PC? Recent comps?

[TooManyCards76]

Originally Posted by towerymt

Its not a loss if its still in inventory (the PC).

It’s almost impossible to break out a 6 box break as both an expense and keeping it as PC. This IRS overreach is bs anyway, I always spend more than I make on eBay or Facebook or shows, everything always goes back into buying for my PC, not to profit and have a business. I sell to offset the costs when I have cards I could care less about but are hot, and I basically sell all base RC’s when they’re hot as I want the #’d stuff. This is nothing more than putting on paper this is what I spent, this is what I sold, and matching sold items to the wax or singles I’ve bought appropriately.

And I always keep a few receipts back to help offset the PC if I ever do decide to sell any.

And yes, if I did decide to put a $0 cost basis on my PC item then I could deduct the entire wax box as a loss if the other contents didn’t exceed the wax box cost. However if I did that when I sell a pc item it’s basically 100% profit, so I do try to avoid it.


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[pete2345]

Wonderful news!

[towerymt]

Originally Posted by atomic619jd

What do you use for the value of the cards you put into your PC? Recent comps?

Price paid when I buy it (usually buying singles online).

[vwnut13]

Don't be surprised when PayPal still sends out 1099-Ks

[rngrdanny22]

Originally Posted by vwnut13

Don't be surprised when PayPal still sends out 1099-Ks

Hopefully PayPal built in a "bail-out" switch in their code. Nothing like building out everything to start sending 1099's to get notified at just about the last minute to bail.

[mjohnatgt]

Can the head of the IRS actually make this decision? The entire budget package the Democrats passed back in the Spring instituting this change was based on the added income that would come from the policy. Wonder if this will be challenged in the Supreme Court, as the clause may not be severable from the overall law without Congress passing something?

[FT35]

eBay is obviously jam packed full of seller fees. BUT…there is some big value to selling there and having them send you the tax numbers—already done with seller fees and shipping fees already calculated—plus your state taxes already held out. I’ve sold on eBay for years (cards and non-cards) and would spend hours on these numbers throughout the year. Now I track a few yearly office supply purchases and print out a completed tax form that eBay spends the time doing. I hand it to the person who does my taxes for $125, write a check to the IRS if needed and I’m done.

[hammertime]

Cool, doesn't help us Virginians who were already doing it though does it.

[Onions]

Originally Posted by mjohnatgt

Can the head of the IRS actually make this decision? The entire budget package the Democrats passed back in the Spring instituting this change was based on the added income that would come from the policy. Wonder if this will be challenged in the Supreme Court, as the clause may not be severable from the overall law without Congress passing something?

This was my thought as well. Curious if there is for some precedent for just ignoring the law. They tried to get it in the most recent $1.7T bill, but were not successful. Manchin tried to get it to a $10k reporting threshold.

[base set]

Had same thoughts on just what are the IRS Commissioner’s abilities here?

But also expected the IRS to join hands with the online platforms in suggesting/lobbying a more intelligent reporting threshold.

[towerymt]

Originally Posted by hammertime

Cool, doesn't help us Virginians who were already doing it though does it.

Yup, business as usual over here

[thenightman]

Originally Posted by Onions

This was my thought as well. Curious if there is for some precedent for just ignoring the law. They tried to get it in the most recent $1.7T bill, but were not successful. Manchin tried to get it to a $10k reporting threshold.

They aren't ignoring it, they're postponing it. No doubt this was sent up the flag pole and given approval. Both R's and D's have been working to change that part of the bill, but as you said failed to make the change. They want to make the change because they know they'll get blow back. This was the only other workaround they could do to allow them to continue working on a way to amend to the bill without it going into effect.

[Onions]

Originally Posted by thenightman

They aren't ignoring it, they're postponing it. No doubt this was sent up the flag pole and given approval. Both R's and D's have been working to change that part of the bill, but as you said failed to make the change. They want to make the change because they know they'll get blow back. This was the only other workaround they could do to allow them to continue working on a way to amend to the bill without it going into effect.

Oh, they ignored it. The bill that was passed months ago is still current law, and is definitely in effect with no amendments in the most recent spending bill in the last few days. Maybe the Director of the IRS has this power to ignore the law, maybe not.

Either way, doesn't affect me one way or the other.

[Sidirezegh]

Excellent, thank you for posting this.

[wrm]

So, for my own clarity...is this temporary hold on for a year or when does that 1099 go into effect?
Does it go into effect Jan. 1, 2023...basically a week from now or Jan. 1, 2024?

Any thoughts? I read the statement from the IRS and can read it two ways.

Thanks

[oddstuff]

Originally Posted by wrm

So, for my own clarity...is this temporary hold on for a year or when does that 1099 go into effect?
Does it go into effect Jan. 1, 2023...basically a week from now or Jan. 1, 2024?

Any thoughts? I read the statement from the IRS and can read it two ways.

Thanks

The law as it is now is on hold and won't go into effect until 1/1/2023. That means for 2022, the selling threshold is still $20,000 and 200 transactions to trigger a 1099. IF the government does not change the law, then as of 1/1/2023, after someone receives $600 or more in sales, a 1099 will be triggered and sent in January 2024 for 2023 selling activities $600 or greater. Hopefully the lawmakers will increase the threshold to a much higher dollar amount.

[wrm]

Originally Posted by oddstuff

The law as it is now is on hold and won't go into effect until 1/1/2023. That means for 2022, the selling threshold is still $20,000 and 200 transactions to trigger a 1099. IF the government does not change the law, then as of 1/1/2023, after someone receives $600 or more in sales, a 1099 will be triggered and sent in January 2024 for 2023 selling activities $600 or greater. Hopefully the lawmakers will increase the threshold to a much higher dollar amount.

Thank you...

So, my suspicions were correct...it was paused (or placed on hold) for all of 2022 but it was just announced on 12/23/22 lasting until 12/31/22.

[RustyDawg37]

Originally Posted by mjohnatgt

Can the head of the IRS actually make this decision? The entire budget package the Democrats passed back in the Spring instituting this change was based on the added income that would come from the policy. Wonder if this will be challenged in the Supreme Court, as the clause may not be severable from the overall law without Congress passing something?

I tried to find the article I read about a day before the official announcement, which mentioned that the treasury does have the power to say they will not be able to implement it. Take it with a grain of salt.

The way i understand it is, they can say, hey this is too complicated. Fix it, cause we're not gonna do it this way. that's just my interpretation

[theshowandme]

A lot of states will still generate 1099s

Been that way in Virginia for years