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Question for you Legal Eagles
cbxjeff
Member Posts: 17,435 ✭✭✭✭
I sold a Gerstner tool chest on the evil auction site. After the sale I received a message from the site that the IRS requires any on-line sale over $600.00 requires the site to get my SS number. I this true? The GB auction side doesn't seem to require that though I haven't sold in a while.
It's too late for me, save yourself.
Comments
I think it is correct. The wife has been sellling stuff on there for years, and IIRC, she said it started last year. It's not just a single item of $600, but a total of $600.You will get a 1099 at the end of the year.
Well toad67, I guess this was legit. My next question is selling is one thing but what about cost & profit? Obviously I'm no CPA but any sale isn't simply taxable income. Sure, if I have a business, that would all be entered in a return but what about a guy that just sold one item for over $600.00 that was purchased 20 years ago for 2x that but was used and abused? Hence the price. Then there are things like shipping cost and auction fees.
I would like more info also .
this is just my guessing and bits of what I have read what I have heard you sell any thing you now a business per the fellows in dark suits thats
any item you sell yard sale flee market on line or how and when ever your in debt to uncle sam and have to report it if the years total is over 600.00 and of course the banks and on line payment systems have to report any deposits in your account over that limit per the new law right to the IRS
what I heard read early on 600.00 + in a one year time frame and its reported and uncle sam wants his share .
my problem like many more not sure how to prove it what I paid 20 or 30 years ago heck even a month ago LOL my suggestion keep track of your time travel, gas , and packing materials shipping cost listing fees (and the kitchen sink just kidding ) any thing involved with the sale can be used to lower the tax as a write off . if you sell 10k or what ever uncle sam counts it as income flat out , they do not automatic guess your cost involved and your responsible for the tax on that 10k ( some crazy amount ) so for my sake I am going to keep some note book with all the info best I can and no way do I have a receipt for 99.999 % for any item I am going to sell . I also have a crap load of items I plan on selling so I will see I guess
I am just going to do my best and know millions more are in the same boat on this new BS law its gong to generate untold millions for the IRS why they are doing it the thought of money thay could not get there paws on was killing them andsad and they do not care a huge PITA for every one else
That is correct. New law Congress passed. It is going to be a PIA for a lot of people. For example if you use VENMO to pay friends for something like splitting a restaurant check or other personal expenses and the payments in the year are over $600 then your friend is getting a 1099 form from VENMO.
Now your friend is supposed to show the income from the 1099 on their taxes.
Look at I.R.C. Section 61. “All income is taxable” unless specifically excluded by the Code. In your case the sale would not be taxable because you sold it for less than what you paid for it.
Where the IRS is going to get you on it is that they will want to see the receipt for your purchase of the item to prove it cost 2x more than the sales price.
With tax code unlike the criminal code the burden of proof is on the taxpayer not the IRS.
Looks like the govt. will be printing as many 1099's as they do cash.