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  1. Member
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    #41
    Quote Originally Posted by sll View Post
    With E-Bay sales they are collecting taxes from the buyer for the seller and you now have your sales deposits go directly into your checking account and not using PayPal anymore for their transactions. I don't believe anyone should have received a 1099 from E-Bay.
    This discussion has nothing to do with sales tax. It is about income tax. The 1099 is reporting gross proceeds just like if you sold a stock. You then need to prove what you paid for it. If you paid less you owe income tax on the difference. If you canít prove it your cost basis is zero and the entire amount is considered taxable income.
    2006 Triton TR196 w/ 200 Optimax \ 2021 AlumaRyder 1860 w/ 200 Rotax

  2. Member
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    #42
    Quote Originally Posted by bass.man65 View Post
    I got a emailed 1099k from Paypal today says your getting this because you either had 200 transaction or received over $20,000. I don't have neither one so why would I get this.
    My guess is someone is selling stolen items and using your name and address and maybe social security number so the resulting 1099 comes to you, and the IRS.

  3. Member
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    #43
    I have a question for the CPAs in the crowd. Can you net out gains and losses on the sales?
    2006 Triton TR196 w/ 200 Optimax \ 2021 AlumaRyder 1860 w/ 200 Rotax

  4. Member
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    #44
    Quote Originally Posted by zelmo View Post
    I have a question for the CPAs in the crowd. Can you net out gains and losses on the sales?
    Yes

  5. Member
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    #45
    Quote Originally Posted by TampaJim View Post
    My viewpoint. It isn't "side hustling" at all. It's an illicit business & tax evasion.
    Freedom = Choices. Follow the laws, get out of it OR risk being caught & fined.
    I'm 100% for full payment, when due, it's the system. Like it, or not, it's ours.
    The Truth hurts. Go figure.
    Basscat Pantera 2

  6. Member
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    #46
    Quote Originally Posted by soccerbassman4 View Post
    Yes
    Ok, then are they going to allow you to offset other income if your net result is an overall loss? They should if they are going to treat gains as income.
    2006 Triton TR196 w/ 200 Optimax \ 2021 AlumaRyder 1860 w/ 200 Rotax

  7. Member
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    #47
    Quote Originally Posted by zelmo View Post
    Ok, then are they going to allow you to offset other income if your net result is an overall loss? They should if they are going to treat gains as income.
    Unfortunately no

  8. Member
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    #48
    Quote Originally Posted by soccerbassman4 View Post
    Unfortunately no
    That means anyone wanting to sell off old stuff around the house (presumably at a loss) should create a business and run the sales through it. Then you could deduct business losses.
    2006 Triton TR196 w/ 200 Optimax \ 2021 AlumaRyder 1860 w/ 200 Rotax

  9. Member
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    #49
    I’m not understanding your thought here. If you are selling at a loss the profit is 0 so no taxes owed. this would not reduce your taxable income if you showed a loss. For people that do in fact have a profit their are multiple (legal)ways to help reduce the profits which reduce taxes owed.
    Quote Originally Posted by zelmo View Post
    That means anyone wanting to sell off old stuff around the house (presumably at a loss) should create a business and run the sales through it. Then you could deduct business losses.

  10. Member
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    #50
    Quote Originally Posted by soccerbassman4 View Post
    I’m not understanding your thought here. If you are selling at a loss the profit is 0 so no taxes owed. this would not reduce your taxable income if you showed a loss. For people that do in fact have a profit their are multiple (legal)ways to help reduce the profits which reduce taxes owed.
    If you run it as a business and show a loss you can use that to offset other income.
    2006 Triton TR196 w/ 200 Optimax \ 2021 AlumaRyder 1860 w/ 200 Rotax

  11. Member
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    #51
    Quote Originally Posted by zelmo View Post
    If you run it as a business and show a loss you can use that to offset other income.
    Not how it works unfortunately, get caught in an audit you’ll likely have some fines and possible jail time, if your cpa does it they’ll be risking their license

  12. Member
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    #52
    Per the IRS:


    Noncorporate taxpayers may be subject to excess business loss limitations. The at-risk limits and the passive activity limits are applied before calculating the amount of any excess business loss. An excess business loss is the amount by which the total deductions attributable to all of your trades or businesses exceed your total gross income and gains attributable to those trades or businesses plus a threshold amount adjusted for cost of living. For taxable years beginning in 2021, the threshold amounts are $262,000 (or $524,000 in the case of a joint return). A "trade or business" can include, but is not limited to, Schedule F and Schedule C activities and other business activities reported on Schedule E. Business gains and losses reported on Form 4797 can be included in the excess business loss calculation. They also include pass-thru income and losses attributable to a trade or business. This includes farming losses from casualty losses or losses by reason of disease or drought. Excess business losses that are disallowed are treated as a net operating loss carryover to the following taxable year. See Form 461 and instructions for details.
    Noncorporate taxpayers may be subject to excess business loss limitations. The at-risk limits and the passive activity limits are applied before calculating the amount of any excess business loss. An excess business loss is the amount by which the total deductions attributable to all of your trades or businesses exceed your total gross income and gains attributable to those trades or businesses plus a threshold amount adjusted for cost of living. For taxable years beginning in 2021, the threshold amounts are $262,000 (or $524,000 in the case of a joint return). A "trade or business" can include, but is not limited to, Schedule F and Schedule C activities and other business activities reported on Schedule E. Business gains and losses reported on Form 4797 can be included in the excess business loss calculation. They also include pass-thru income and losses attributable to a trade or business. This includes farming losses from casualty losses or losses by reason of disease or drought. Excess business losses that are disallowed are treated as a net operating loss carryover to the following taxable year. See Form 461 and instructions for details.
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  13. Member BOATS's Avatar
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    #53
    Don't know who's right or wrong on this thread, all I do know is I used Facebook Market place to sell my rims and tires from my trailer when I replaced them and a message popped up in the process letting me know if my sales went above 600 I would be subject to receive a 1099.
    XPRESS H 18 SS, YAMAHA 115

  14. Member basnbran's Avatar
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    #54
    Quote Originally Posted by BOATS View Post
    Don't know who's right or wrong on this thread, all I do know is I used Facebook Market place to sell my rims and tires from my trailer when I replaced them and a message popped up in the process letting me know if my sales went above 600 I would be subject to receive a 1099.
    How is this case handled? If I buy a new truck and sell the tires and wheels, how would I put a dollar amount on them to prove a loss?
    Local sale, cash only works for me.

  15. Member
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    #55
    Quote Originally Posted by basnbran View Post
    How is this case handled? If I buy a new truck and sell the tires and wheels, how would I put a dollar amount on them to prove a loss?
    Local sale, cash only works for me.
    Order the same wheels and tires that you had so you can get a receipt, then cancel the order and get a refund.

  16. Member
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    #56
    Quote Originally Posted by bassfisher444 View Post
    Order the same wheels and tires that you had so you can get a receipt, then cancel the order and get a refund.

  17. Member
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    #57
    Quote Originally Posted by TampaJim View Post
    I don't know what your problem is, the receipt is to simply show the value of the wheels and tires that you sold for less than that. It's not illegal to do that.

  18. Member
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    #58
    Sucks.Ive been waiting to sell stuff for part of retirement

  19. Member
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    #59
    Quote Originally Posted by DaveBrabec View Post
    Sucks.Ive been waiting to sell stuff for part of retirement
    Don't let this stop you from doing that. Just keep some simple records of what you bought/sold and you're good to go. The IRS isn't going to come hunt you down because you paid $20 for something and sold if for $40, just note your net profit and report it.

  20. Member
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    #60
    Quote Originally Posted by DaveBrabec View Post
    Sucks.Ive been waiting to sell stuff for part of retirement
    I have been setting up my whole life basically to sell in retirement. I'm not happy with this but it's a fact of life. Learn to deal with it and don't let it stifle what you had intended to pursue.

    Keep records of all your transactions. Every transaction has a receipt and you could print a copy and use that as a ledger. For each transaction deduct all fees for eBay, PayPal, postage, and cost of the sold items. If you don't have exact record of the item value pre listing use a reasonable figure but itemize each transaction with recorded receipt or declared pre sale value . What's left is taxable income. You will get a 1099 for the total transactions. Deduct the costs. Add the remainder to your other taxable income. Expect to owe between 10 and 15 cents of every dollar you made. If that puts you in a higher bracket than it will be more. If you are still under your cap before all your income bears taxes than it will not be anything. Bottom line is you will be on the hook for in the neighborhood of150 dollars per extra thousand if you are presently paying any income taxes at all. That still leaves you 850 profit post taxes. Base your decision to sell on wether that is worth your while. It is the new fact of life going forward. Once you get over that it becomes standard operating procedure. At the beginning of next year you file your taxes and if you owe money you either send it in or set a payment schedule with the IRS to have a preset amount automatically deducted from your checking account. They could care less if you owe as long as you make effort to make payment.
    Last edited by mattmann7; 01-27-2022 at 11:10 AM.

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