Wait what lol
Needles & Grooves
djdavedk
This may become a headache.
frodo-pkt
Doesn't it only report if the transactions are over $600? Pretty sure this won't have much of an effect on selling a record here and there. More for people making an actual small business out of it.
But to answer your question, the tax should be applied to whatever you sell it at
But to answer your question, the tax should be applied to whatever you sell it at
Tys1
“Beginning six months from now, on January 1, 2022, for the tax year 2022, the TPSO has to send the recipient a 1099-K when the recipient has receipts of $600 or more during the year.”
Tys1
^^ this USED to be 20k or more in receipts before PayPal (TPSO) would send a 1099-K
Kris
I think it’s going to make selling records not worth the hassle. It will take another big cut of your proceeds. Most of my sales are at a loss but I don’t have receipts for them all to prove it
dansomeone
eBay still shows the 20k min for a 1099-K. Will this apply to sales there starting in 2022 as well?
Kris
Yes, if I remember correctly, it was part of the American rescue plan act.
www.cnbc.com
It's going to become harder to avoid telling the IRS about income from selling stuff online. Here's what to know
The recently enacted American Rescue Plan Act significantly lowers the threshold for when online sellers will receive a tax form.
Tys1
So, just got off the phone with our family CPA and got her recommendation. For heavy sellers that have always managed to stay under the $20k threshold but are not quite at the LLC level because they’re not concerned with liability and what not. Her recommendation is to file a schedule C.
Tys1
This way, you don’t need to pay for a state or federal business license and don’t need EIN if you’re doing it by yourself, you can then write off your expenses and pay taxes on just your profit. If you claim as a hobby, you pay taxes on the full amount of the sale and the write offs for hobbies are few and far between.