Taxes on p2p sales??

[trophy8]

How would you make it "Rain"?

Quarters, dimes, and nickels.

[Lost10mm]

I am confused if it is a $600 transaction or a total amount of over $600 from one person to another.

My understanding is a total of $600 over one year.

[glen]

My kid uses it all the time like most kids these days. I’m gonna have to call and tell him so he doesn’t get hammered come tax time

[GA Bowhunter]

Basically, you will need to file tax returns and related forms. You will need to show your basis in the item(s) sold and when purchased (keep your documents).

That should open the door to depreciate the assets when purchasing.

Buy a new bow for 2k and deduct 2k on your taxes. Sell it 15 years later for $50 and pay taxes on the $50 gain.

If they want to tax sales of personal items, they will have to permit depreciation of those assets.

I call that a win!

Everyone can get in on the small business write offs.

Disclaimer: I'm just a guy who has been reamed by the tax man for 25 years of small business ownership. The above points are just my opinions and not facts. Consult your CPA.

[KX500]

Yes, if PayPal, eBay, Venmo, Gunbroker or whoever sends you an IRS form 1099 (and they should only send this to you if you received more than $600 in Electronic Payments though their platform), you now owe income taxes on that dollar figure.

A couple of key things: 1) If you sell a gun and then a scope on gunbroker (say $450 and $150) and you said 'money order only' for payment on the scope, you're good. You stayed below the $600 in Electronic payments on that platform. You don't have this option on eBay - electronic payments only.
2) You do have the option to document the fact that you made no profit on an item-as in bought scope for $700 & resold it for $699. If you resold it for $1000 & receive a form 1099 because of it, you will owe income tax on the profit (about 30%). So if you do your own taxes I have no idea how you submit that documentation.

I have sold a lot of old dirt bike parts through eBay, careful to keep it as a 'hobby' & not exceed thresholds. Overall a good thing, but for So much of what I've sold, I actually net less than half of the sales price after paying for shipping & eBay fees (15% usually) - if I'd loose another 30% on these things, it just gets to the 'not worth messing with' point.

Last year I did exceed some threshold (that only my tax preparer seemed to know about) and had to itemize everything I'd sold on eBay for the year-or simply owe taxes on $10k worth of sales.

So I itemized showing purchase price of dirt bikes I'd bought to part out, when I'd sold enough parts to break even and when profiting began. I had sold 6-8 'household' items for no profit, these items had to be listed also with purchase price and selling price included.

I started out owing 30% on $10000 worth of sales but in the end was able to show I'd only profited by $3000, so owed $1000 instead. It still sucked that I'd (unknowingly) crossed that threshold, but owing $1k is better than owing $3k.

I bought up the topic of receipts to the accountant (purchase price of items resold) and he basically said the IRS can't really prove one way or the other if you're telling the truth in your documentation - as long as it is within reason.

[jdg13]

Just another way for the IRS to funnel money to our crooked government. It's one thing to go after the "cash only" businesses who are obviously avoiding paying their fair share. Taxing a dude mowing his neighbor's lawns for pocket change or selling some trinket they already own is complete BS.

[TCB]

So the money I send my son at college to pay for food/gas is going to be taxable??? This is the biggest load of BS to come out of Washington lately.

[CEO]

Just when you think the tax system can't get more convoluted.

[Tbar]

Wow....

[M16]

Where's that receipt from that gun I just sold that was purchased 30 years ago. It's got to be around here somewhere.

[junkmanhunter]

My son and all the guys on their deer lease always sent their money to the lease manager by PayPal, Zelle or Venmo, He had to stop it because of this. He was looking at getting hammered for $20,000 plus of income from the lease payments.

It’s just another way the government is wanting to over step their bounds. You wonder why they want to hire 85 thousand IRS agents???

[TXFireFighter]

I believe we will have a CBDC (central bank digital currency) within five years...so it will be tough to impossible to hide any monetary transaction.

This unfortunately. It's exactly what the feds want. The Dollar Endgame

[ramrod]

Thanks in part to the inflation reduction act......hiring 87K new IRS workers.

[7sdad]

And when will this all start or has it already?

[GA Bowhunter]

...you now owe income taxes on that dollar figure.

You owe taxes on the net "profit", not the gross sale.

On you $600 example, if $25 was profit that would be the taxable amount.

You had better know your basis and have documents to back it up.