Well, the Ebay tax is real.

Gary S

Administrator
Lifetime Gold Member
Apr 14, 1999
24,657
Bismarck, North Dakota
Maybe a partial way to beat some of that is to do more bartering. Trade what you have for something your neighbor has. No money changes hands, no credit cards record it, and nobody can tax it.
 

Todd80Z28

Moderator
Staff member
Lifetime Gold Member
Jun 11, 2002
11,945
Northern VA
Tom- no way I’d default to a zero cost basis on anything I’ve sold. Do some googling and maybe talk to a tax pro if it’s a decent amount of money. You may have to end up running it as a business to deduct cost of goods sold, but there is surely a way.
 

danbrennan

Veteran Member
Lifetime Gold Member
Mar 13, 1999
4,942
Brighton, MI
This does sound pretty dumb,


"Before 2022, the federal Form 1099-K reporting threshold was for taxpayers with more than 200 transactions worth an aggregate above $20,000. However, Congress slashed the limit as part of the American Rescue Plan Act of 2021, and a single transaction over $600 may now trigger the form."

"Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida, said the business income on your return must include what’s reported on Form 1099-K. Otherwise, you may trigger an automatic IRS notice or even an audit, he said."
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"But selling items at a loss, such as used furniture, may be less clear."

"“Obviously, if you sell a $2,000 couch for $1,000, there’s not taxable transaction there,” Markowitz said. “You don’t get a capital loss for it, and you don’t have a gain.”"

"“The challenge with the new lower threshold amount of $600 for Form 1099-K is that personal payments and reimbursements could be incorrectly reported as taxable transactions,” Miller said."

"A frequently asked questions page from the IRS says you shouldn’t receive Form 1099-K for personal transfers, such as reimbursements for splitting meals, gifts or allowances."

"However, if you receive the form for personal transactions, the agency says to contact the issuer for a correction. If the company doesn’t fix the error, you can attach an explanation to your tax return while reporting your income correctly, the IRS says."
 

Rosster

Veteran Member
Gold Member
Mar 1, 2020
1,038
Same with PayPal, money being tracked there , if you receive a payment for say a car part , they want a tax ID as well. I had to provide one , before they would release the money to me. Not their fault ….it our dirty government at work to gain total control Of our ever move.

Biden is trying to do away with hard money …..so I can’t walk down the street and buy a good or service from my neighbors yard sale or just friends . Feds wants everything we do , every move we make, every accessible way into every moveable way to tax everybody ANY time a transaction takes place . And we , are enabling them , just like Chicoms. Did….track everything you do , where you go or what services you are entitled to….though that chain on your ankle called a smart phone . If I buy a bushel of corn from your garden , Biden wants me to pay you with electronic credit ….traceable and tractable automatic to tax system to get their cut . Inprisoned by the smart phone and our government. And it will only take a short while , new generations will never know such freedoms existed , they will be trained to accept all this and never understand what has happened Over the past 100 years .
The reason the 2nd amendment exists is for time like this when the gov’t is corrupt and no longer serves the in the interest of the people.
 

badazz81z28

Veteran Member
May 4, 2001
22,320
Alabama
I agree that people who run business should pay the appropriate taxes, but let's get real here. I buy something 5-10 years ago for retail...decide to purge my stuff and sell everything at a loss. Should I pay taxes on that money? Heck should the person who bought the item pay tax again? The USG pulls too much money from us...but I guess you can blame the welfare system, the pay my student load debt, pay for this and that....the money adds up.
 

70lt1z28

Veteran Member
Gold Member
Oct 3, 1999
4,940
Beavercreek, Ohio, USA
I agree that people who run business should pay the appropriate taxes, but let's get real here. I buy something 5-10 years ago for retail...decide to purge my stuff and sell everything at a loss. Should I pay taxes on that money? Heck should the person who bought the item pay tax again? The USG pulls too much money from us...but I guess you can blame the welfare system, the pay my student load debt, pay for this and that....the money adds up.
Blame goes two directions here. To the welfare system and to the folks making billions and who employ a full time staff to look for ways to pay zero taxes. Problem is its easier to issue a new form 1099K to the folks that don't have those resources to fight paying taxes. Same old story all over again...
 




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