Internet Sellers, Be Aware of Tax Laws

[penumbra]

Last year I was hit big time with 1099s from eBay, Etsy and PayPal. This was because Virginia requires sales over $600 to be declared. Most of my sales were not business related but simply getting rid of things. Virginia was one of a very few states with this $600 rule. Most states were $20,000. Any of you that sell on eBay will remember it was $20,000 before eBay got involved with the issuance of 1099 forms.
This just came on my email from Etsy:

Due to new United States tax regulations, Etsy and similar companies will be required to report your 2022 sales to the IRS in 2023 if you make over $600 in the next year*.

Nobody thought this would pass because Congress can't seem to get anything done, But Pass it Has.
Just saying...................

 

[hinmo24t]

cha - ching!!!!!
i remember bringing this up, Facebook Marketplace and Craigslist probably as well

from some research i did, i think the previous 20k was only for 'hobbies' or like you said getting rid of excess,
but if it were a contributor outside of that to your income, as part of your income, or purposelly to make a $, its was probably less than 20k. $600 now


anyone hear of hiring a ton more IRS (golden goose jobs, pensions and indirect benes) to keep tabs on purchases of $600 or more?
in this economy, family of 4 grocery bills will be poured over by massive IRS federal law while supporting their pensions



a holes

 

[Maiden69]

I noticed that Virginia is stupid when it comes to taxes... in the VW forum I go to a guy was charged state tax plus county tax on an item he bought online. I noticed that quite a few states are doing this. I ordered struts and shocks for my car from tire rack and now they have a "county tax" line as well. God I love living in Texas!

 

[hinmo24t]

I noticed that Virginia is stupid when it comes to taxes... in the VW forum I go to a guy was charged state tax plus county tax on an item he bought online. I noticed that quite a few states are doing this. I ordered struts and shocks for my car from tire rack and now they have a "county tax" line as well. God I love living in Texas!

unreal! yet believable. wow. those pensions and handouts (votes) dont fund themselves you know

 

[penumbra]

I noticed that Virginia is stupid when it comes to taxes... in the VW forum I go to a guy was charged state tax plus county tax on an item he bought online. I noticed that quite a few states are doing this. I ordered struts and shocks for my car from tire rack and now they have a "county tax" line as well. God I love living in Texas!

Most states are requiring sales tax for online sales now.

 

[hinmo24t]

Most states are requiring sales tax for online sales now.

i think he meant they hit them with sales tax, and some new zip code tax. $$$$$

 

[Maiden69]

Most states are requiring sales tax for online sales now.

Not complaining about state taxes, to me that is ok. I'm referring to some states adding "county" taxes as well. Not like they rip you up with property taxes.

 

[Pitoon]

This may force people that really want to continue their hobby to start their own business. It still boggles my mind that VA charges a yearly property tax on operated vehicles.

 

[hinmo24t]

This may force people that really want to continue their hobby to start their own business. It still boggles my mind that VA charges a yearly property tax on operated vehicles.

good point, and sliding 30% of earnings from it away to state and fed income tax

ill be thinking about it in the future, if its worth it or not

 

[sorce]

FTG

Sorce

 

[Pitoon]

good point, and sliding 30% of earnings from it away to state and fed income tax

ill be thinking about it in the future, if its worth it or not

It's definitely worth it for the tax benefits you get for operating a business. The tax write offs for start up and expenses as well as the depreciation on equipment.

Bonsai shows....tax write off
Business meals......tax write off
Business mileage.....tax write off

 

[hinmo24t]

It's definitely worth it for the tax benefits you get for operating a business. The tax write offs for start up and expenses as well as the depreciation on equipment.

Bonsai shows....tax write off
Business meals......tax write off
Business mileage.....tax write off

if you dont make a lot of money with the business i could see that offsetting it a bit, while its in the start up window

start writing off enough expenses and theyll prob audit you for the rest of your life



but having to begin deductions of a third of your income, forever, from your gig could be a chunk of change a deciding factor for some

then again if thats primary income its the way it goes, theyll find out eventually
a lot of this is for side projects outside of day jobs they want on the books now, for thresholds of $600 lol

for scrappers, flippers, craigslist sellers, facebook marketplace plant sellers, pot makers,
etsy accounts (might have already done 1099s or income tax if they know how much you sell) ebay people,
part time Tudors, hair and makeup on the side, they want a piece of all that



death and taxes, the only guarantees in life

 

[Wires_Guy_wires]

Buyers from Europe beware too!
New Schengen import laws state that you'll have to pay an import tax on anything you buy from outside the union.
I got some seeds as a present from a nice forum member. Someone, somewhere valued those seeds at 20 USD. The import tax was around 13 USD.

To the sellers: state that it's valued at <20 USD, or state that it's a free present to avoid this.
To the buyers: ask the seller to send you an email that it was free. Apparently forum messages don't count.

 

[Pitoon]

if you dont make a lot of money with the business i could see that offsetting it a bit, while its in the start up window

start writing off enough expenses and theyll prob audit you for the rest of your life



but having to begin deductions of a third of your income, forever, from your gig could be a chunk of change a deciding factor for some

then again if thats primary income its the way it goes, theyll find out eventually
a lot of this is for side projects outside of day jobs they want on the books now, for thresholds of $600 lol

for scrappers, flippers, craigslist sellers, facebook marketplace plant sellers, pot makers,
etsy accounts (might have already done 1099s or income tax if they know how much you sell) ebay people,
part time Tudors, hair and makeup on the side, they want a piece of all that



death and taxes, the only guarantees in life

One way to avoid that would be to operated in cash only, but we are moving towards a cashless society now. However I do see stores that put signs up "Cash Only". Which I could only assume they don't want to pay the 3-5% transaction fee for swiping cards through a machine.

Unless the law changed again.....the IRS doesn't consider a hobby a business if it generates less the $4K in that tax year. If you operate a business and follow the tax code and keep your accounting in order and maintain your documentation. Then there should be no worries if there is ever an audit. If you follow the law, then you shouldn't have to worry.

9 out of 10 businesses fail within 5yrs.........out of those that survive past the 5th year.............9 out of 10 of those businesses fail by the 10th year. Businesses come and go. Back in the day companies were able to survive 100+ yrs, that number slowly went down to 50yrs, and today it's expected a company to survive 25yrs. Times change with technology and business have to change as well. Those that do not get weeded out slowly.

The only issue starting a business is the capital to start up. If one has a good business plan.....a realistic business plan.....opening a business could be worth it.

 

[vp999]

I understand this is for "business account" only right ? I would hope so because I get over 100k+ a year in PayPal, Zelle, Venmo, Cash app, Google pay..... transactions outgoing and incoming from my weekly fantasy football contests with my 8 friends not counting for other expenses like food and such. But I only have personal account with those apps so Im trying to see how this would effect me since I am not a "business" This would definitely takes the fun out of it.

 

[hinmo24t]

I understand this is for "business account" only right ? I would hope so because I get over 100k+ a year in PayPal, Zelle, Venmo, Cash app, Google pay..... transactions outgoing and incoming from my weekly fantasy football contests with my 8 friends not counting for other expenses like food and such. But I only have personal account with those apps so Im trying to see how this would effect me since I am not a "business" This would definitely takes the fun out of it.

you brought up a great point, and yes, as of 10 days ago, that is now something they want a slice of as well

Fantasy sports winnings of at least $600 are reported to the IRS. If it turns out to be your lucky day and you take home a net profit of $600 or more for the year playing on websites such as DraftKings and FanDuel, the organizers have a legal obligation to send both you and the IRS a Form 1099-MISC.Nov 27, 2021

i dont bet on sports at all but i should mention, Pats taking it all. Mac Sauce!

 

[hinmo24t]

@vp999 lets go pats

 

[penumbra]

I understand this is for "business account" only right

Wrong. You are going to get the 1099s. You are, with or without a business.
I have never gotten a business acount on eBay, or Eststy, yet both of them and PayPal too, sent me 1099s last year.

 

[hinmo24t]

like stock market 1099 capital gains, its on top of income tax... double tax

 

[vp999]

Wrong. You are going to get the 1099s. You are, with or without a business.
I have never gotten a business acount on eBay, or Eststy, yet both of them and PayPal too, sent me 1099s last year.

Maybe because you have a “ seller account” ?