Got a lovely little note from my accountant:
…….
The IRS is cracking down on payments received through apps, such as Cash App, Zelle or Paypal to ensure those using the third-party payment networks are paying their fair share of taxes.
Beginning Jan. 1, 2022, third-party payment networks will be required to send users Form 1099-K for transactions made by mail or electronically. This requirement will impact your 2022 tax return filed in 2023…….
I personally know some people made a lot of money without paying taxes using these cash services so it’s actually fair.
However for us it’s just a bit of work and we can actually benefit from it. Since they are sending you a 1099 you are by default a business and as long as you put a cost on the items sold and took a lost then you will get the benefit of tax deduction! I always had good amount of lost selling airguns and stuff here. Just don’t go too crazy deducting your car payments and such!![Rolling on the floor laughing :rofl: 🤣](https://cdn.jsdelivr.net/joypixels/assets/7.0/png/unicode/64/1f923.png)
![Rolling on the floor laughing :rofl: 🤣](https://cdn.jsdelivr.net/joypixels/assets/7.0/png/unicode/64/1f923.png)
![Rolling on the floor laughing :rofl: 🤣](https://cdn.jsdelivr.net/joypixels/assets/7.0/png/unicode/64/1f923.png)
…….
The IRS is cracking down on payments received through apps, such as Cash App, Zelle or Paypal to ensure those using the third-party payment networks are paying their fair share of taxes.
Beginning Jan. 1, 2022, third-party payment networks will be required to send users Form 1099-K for transactions made by mail or electronically. This requirement will impact your 2022 tax return filed in 2023…….
I personally know some people made a lot of money without paying taxes using these cash services so it’s actually fair.
However for us it’s just a bit of work and we can actually benefit from it. Since they are sending you a 1099 you are by default a business and as long as you put a cost on the items sold and took a lost then you will get the benefit of tax deduction! I always had good amount of lost selling airguns and stuff here. Just don’t go too crazy deducting your car payments and such!
![Rolling on the floor laughing :rofl: 🤣](https://cdn.jsdelivr.net/joypixels/assets/7.0/png/unicode/64/1f923.png)
![Rolling on the floor laughing :rofl: 🤣](https://cdn.jsdelivr.net/joypixels/assets/7.0/png/unicode/64/1f923.png)
![Rolling on the floor laughing :rofl: 🤣](https://cdn.jsdelivr.net/joypixels/assets/7.0/png/unicode/64/1f923.png)