To help clarify the NEW IRS rules that go into effect in 2022.
This new rule was buried in the "American Rescue Plan Act of 2021" that our current admin signed at the very start of 2021...
Ebay, Paypal, Venmo etc etc etc...Any 3rd party that handles money transactions for you will now issue a 1099-k form for the year if your sales exceed $600....Doesnt matter how many transactions...Yes...This USED to be $20,000 AND 200 transactions...That ends is lets see....8 days....
This is not for you to pay any Sales Tax as was mentioned above but to report income YOU receive...INCOME from Sales...It is then up to you to now fill out a schedule C business income and expense form and include any item COST for the actual item sold and also allows you to deduct shipping costs, Ebay Fees, packaging material, mileage to and from Post office etc, or any other overhead you have in running this "Enterprise"...They will report the total SALE which includes any shipping you charge..Not sure if the total that is reported will include Sales tax ebay collects from seller as they collect and disburse to each state on YOUR behalf...so it may not be reported in the TOTAL Sales...
Also if you sell something and it is returned the sale will still show up in the YEARLY total reported on the 1099-k and it is up to you to deduct "Returns" on your schedule C....
All of this was done in a bill that nobody read...Not you, not Me and not many of our Congress people...Just Rammed thru and most of us are only finding out now...many with just this thread...Sorry everyone....But please understand...Ebay has it faults but be 100% confident this is NOT the idea of an Paypal, Ebay, Venmo think tank....They would rather have NO reporting.....Things are happening out there that people have no idea of....Can you say 85 BILLION yes BILLION dollars going to IRS for collections (from middle class) in the proposed BBB plan....Many Thanks for Mr. Manchin for the temporary hold on this Lunacy...Read everybody....and the READ SOME MORE....
This is deep...This is real....Everyone get ready for 1099K forms in 2022 and then a personal IRS representative if and when BBB gets rammed down our.....
Also somewhere in the BBB mirage there is the plan for Bank reporting of ANY transaction that is $600 or more...IN or OUT....OUR BANK ACCOUNTS???...$600 or above???...How many of us do transactions in or out that exceed $600 in any given month...Lots i would guess...I have to explain to what those are now?
If you really read carefully above i kept this from being political...This is just real comments and back and forth about something that is important to many people in our hobby...So...should be n problems with any of these or the previous statements above..
With great Respect to SCR and all of its members...
Merry Christmas Everyone....and most importantly...STAND FIRM!
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