The IRS is coming!!!

Jump to latest Follow Reply
Status
Not open for further replies.
qball

qball

Member
Apr 13, 2020
8,113
3,719
CA, United States
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!🤣🤣🤣
 
Hopefully you keep receipts-you're not making a profit if you sell for less than you paid. Not sure how you'd categorize that "income"? I think there's a hobby business category it might fit into. Might be a question for your accountant if you have one. You can also deduct shipping and packaging costs. Our family trust has to send out 1099s on any business or individual we pay more than $600 to unless they're incorporated. 
 
Upvote 0
Hopefully you keep receipts-you're not making a profit if you sell for less than you paid. Not sure how you'd categorize that "income"? I think there's a hobby business category it might fit into. Might be a question for your accountant if you have one. You can also deduct shipping and packaging costs. Our family trust has to send out 1099s on any business or individual we pay more than $600 to unless they're incorporated.
Click to expand...


yes! Keeping the receipt is a necessity! The down side of always losing money is you can’t deduct anything else for very long. I do need to consult with my accountant to see if airgun purchase are deductible if I see it as a “business” now that they make me go through all that work. 
 
Upvote 0
I usually don't get into politics here but this does pertain to airguns. Anyone else feel like this is a bit creepy? I mean the IRS started income tax in 1862 under Lincoln. Ok civil war was expensive fine. Then we have a few more taxes but not really that bad for about 50 years. Then we have the enactment of the federal reserve and then property tax that was only supposed to last as long as the war but somehow stuck around. Now we have so many taxes and regulations that you need a freaking accountant to figure it out. It's not enough that they tax the business that builds the airgun and then the person who buys the airgun but now they are going to tax that airgun every single time it passes hands? Pretty lame for a country rebelled over a 1 percent increase on tea taxes. I don't remember ever voting for this. Same for the bridge toll they started over here. We voted on that but they said the toll would end when the bridge was paid for but now it's paid for 50 times over and it just went up to 7 bucks one way. In my opinion we are way over taxed and way to compliant with being lied to. Airguns or anything being taxed over and over and over for the life of the item just seems like a greedy act on behalf of a corrupt system. But don't worry IRS I'll pay my taxes. Don't want any alphabet boys kicking in my door and throwing me in a cage for my hobby. 
 
Upvote 0
Taxation is theft.
Click to expand...

amen .. this country was founded in large part over unfair taxes without representation .. they can print money and give it to non working unproductive people and even non-citizens now but the working guy yep, taking your money.. was i represented or agree to that manure .. nope ...
Click to expand...

+2

It's all about control.
 
Upvote 0
Tax is necessary obviously but crazy tax is another, then double taxation is straight up unconstitutional!!! Sales tax is money we already paid income tax on!! oh well, such is the world we live in. BTW: I personally know people who breed fancy dogs and get paid via PayPal and such so they don’t pay any taxes at all so it’s very common, all dog breeders do it! We are talking about at minimum $500k a year so I knew this day would come because like everything a few ruins it for everyone! They DO need to pay their fair share like rest of us!!! But we are the collateral damage. 


HOWEVER, if they really go down this road it’s also a double edge sword! I thought about setting up an airgun related “business” so airguns will be tax deductible but got lazy. Now they force me to be not lazy then guess that will be the game we play!!! 
 
Upvote 0
NOT ALL pay their fair share and PayPal/waymo has been the loop hole for many for a long time. We aren’t talking about small amounts at all! This is inevitable because a few abuse the system. 


tax is inevitable as death itself but we still enjoy some of the best life styles in the world. People here don’t know how good we have it compare to other people in the world. 
 
Upvote 0
The law states. Even illegal activity money made must be reported on taxes. There are a number of famous gangsters that went to prison only because of tax evasion. The law is nothing new. It's been one the books for 80 years.
Click to expand...

Well, actually it is.

Without quoting an entire article, here are a few lines that describe the law via the magazine Reason:

Uber drivers, Etsy sellers, and others who earn income through the gig economy could get a nasty surprise from the $1.9 trillion emergency spending bill signed by President Joe Biden on Thursday.

Buried inside the 600-page bill that's ostensibly meant to provide pandemic relief is a provision requiring gig economy platforms to report information to the IRS about all users who earn at least $600 in a year. Previously, platforms were only required to provide the IRS with information on users who made at least 200 transactions or earned at least $20,000.*

The tightening of the reporting requirements means a lot more paperwork and tax compliance requirements for platforms. It also means more tax headaches for anyone who might use those platforms to earn a little extra cash. Anyone earning a sizable income via rental properties on Airbnb was already covered by the old rules, meaning this change will only affect low earners. Now, even the sale of a single expensive piece of old furniture on eBay or running deliveries for Uber Eats in your spare time might trigger the new reporting requirements.

So good luck trying to convince the IRS that that 1099 you received because you sold an air rifle using your paypal account isn't income.

Again, you know who to thank for this.
 
Upvote 0
Tax is necessary obviously but crazy tax is another, then double taxation is straight up unconstitutional!!! Sales tax is money we already paid income tax on!! oh well, such is the world we live in. BTW: I personally know people who breed fancy dogs and get paid via PayPal and such so they don’t pay any taxes at all so it’s very common, all dog breeders do it! We are talking about at minimum $500k a year so I knew this day would come because like everything a few ruins it for everyone! They DO need to pay their fair share like rest of us!!! But we are the collateral damage. 


HOWEVER, if they really go down this road it’s also a double edge sword! I thought about setting up an airgun related “business” so airguns will be tax deductible but got lazy. Now they force me to be not lazy then guess that will be the game we play!!!
Click to expand...

Paypal has been handing out 1099 for the last 8 years..... unless they do every transaction as friends and family. However people paying that kind of money for a dog likely don't want to give up any course of action they have if something goes wrong.
 
Upvote 0
We can all thank the current administration for this.
Click to expand...

How so? The top income tax rate in 1981 was 70%, out national debt under 1 trillion. That top rate is about half of that now, after constant cuts, our debt around 29 trillion. The top 10 US billionaires went from 750 billion in March ‘20 to 1.5 trillion in Nov ‘21. The top 2 people in the US (Musk and Bezos) have more wealth than the bottom 40% of Americans combined. My property taxes have tripled in 14 years. Someone has to pay taxes, and since the ultra wealthy decide our laws, they decided to do it the way we do it now. You can blame the current administration in not addressing the obvious tax problems we have in the US, well so far. 
 
Upvote 0
Status
Not open for further replies.
Top Bottom
Back
Home
Forums
Resources
Menu