Not a single Republican voted for it. And only 2 Democrats voted against it.
Biden’s ‘Rescue Plan’ Will Sic the IRS on Anyone Who Earns $600 in the Gig Economy (reason.com)
Here are the votes:
H.R. 1319: American Rescue Plan Act of 2021 – GovTrack.us
Not trying to be political. Just stating the facts.
Additionally, not a single Republican voted for the additional 87,000 IRS agents who will enforce it.
Did not realize all this and I do appreciate the correction–didn’t take it as political, just appreciate accurate information. Regardless of any party affiliation, it is a mess without a doubt.
Regardless of who passed it, isn’t it funny how they time things like this to hit right after an election year? That way people will be pissed but will be over it two years from now when they vote again. I despise Congress, both parties. They all play these games to increase their own lifestyles at the cost of all of us.
Question for those of you that “keep meticulous records” and aren’t worried about this at all.
I’m assuming that EBay will issue a 1099 and if you have receipts to negate the sales, aren’t you worried that it’ll trigger an audit?
I understand that you have the receipts to deduct for your comic stuff but I’ve heard horror stories about audits. Like they look at EVERYTHING and look at other years as well. It would suck to get audited and I’m worried that deducting my expenses, even if they’re legit will trigger it.
Deducting expenses in general is standard practice. It’s expected. There are certain expenses that could trigger an audit based on what I’ve read in this thread. I don’t know enough about that though to expand on it.
That said, I do understand your concern if you’ve never voluntarily reported comic sales in previous years. That’s my concern too. Those 87,000 agents were hired for a reason… Gov’t could get curious if they see a bunch of first time 1099 filers…
Yes, once you claim the purchase on a particular tax year, you cannot claim it any other year. It also has to be inventory that is for sale. If you buy something for the “personal collection”, even if you intend to sell many moons from now, you cannot “legally” claim it as inventory if the original intent was for yourself and only yourself (or to pass on for others to inherit). Purchasing inventory will be treated like such, you don’t want them coming into your house and doing a full audit of your “business”… trust me, you’ll have a hard time proving what’s personal and what’s for business tax purposes.
I’m no tax professional though, that’s just my understanding of how it all works. Seek out a tax professional to make sure you do your taxes right is my only suggestion and advice.
The IRS is always behind. If you think just because a year or two goes by you’re in the clear, think again. That’s when they’ve added on the interest as well. Just pay your taxes, that’s the simple solution to avoid a major headache. The last person I knew how got audited literally aged probably 10 years within 6 month time frame from the nightmare and it was all his own fault because he thought he didn’t have to claim income from investments he pulled from.
Write to your state reps if you take exception to it. I did.
Yes. But I also know there’s nothing I can do about it other than do the honest thing as best I can.
What does concern me most is my LCS’s Do not itemize each purchase. I get receipts but the receipt does not say Batman ### $10.
It just says I purchased an item for $10 on X date.
So I keep records of what day and how much I paid for most books from the LCS’s…but I could certainly see being challenged on “why should the IRS believe that receipt was for Batman ###).
What an absolute mess.
Once folks start getting 1099s for selling an exercise bike at a loss or such cue the, “Eating popcorn,” meme for all the ensuing madness and media stories.
It’s not even just that. Think of all the poor students trying to just make some of their money back on textbooks they sell back each semester, this change is going to turn out being very cruel for some people. Very sad to see. Hopefully it will get rectified sooner rather than later.
Good case study:
Sold 2K worth of Used Games (Old PS2, PS3, XBOX, and etc) Let how much of capital loss can I file for 
. I’ll make them feel my pain…
But did you claim those as inventory when purchased? I’d seek a tax advisor. Buying games to play and use likely don’t fall under “business purchases” when selling them off later. You just have to report it as just income if sold through eBay or such as these purchases likely fell under your non-itemized purchases when originally bought. But seriously, seek out a tax advisor cause that could be a total flag for audit if done incorrectly.
Most college books are sold at a loss, so you don’t have to pay taxes on the losses.
Say you bought a book for $300 for a course and sold it after you used it for $150, you don’t pay taxes.
Seek a tax advisor though. When I was in college, I never was able to sell my used books at a profit.
That’s why I said make some of their money back. But it also puts the burden of proof on those students to keep receipts just to show they aren’t supposed to pay taxes on it, since eBay doesn’t know and will generate a 1099 for them. Like I said it makes life much more difficult for alot of people.
Exactly… misery for 180 million users of which a significant portion are weekend warriors who did not keep their receipts from 1999
Americans are horrible with finances overall. I do feel this is the sort of crap they should teach you in school yet they don’t, it’s all upon you to educate yourself to be honest.
But most students tend to sell their books when they’re done with the class, so finding the proof of original purchase isn’t or shouldn’t be that hard if one used a credit/debit card. If you buy everything with cash, you must learn to obtain and retain receipts for anything that is going to be tax related later on.
Sadly though, ignorance of the law is not an excuse of not following the laws. They might be a little forgiving but repeated behavior or if they find proof you just ignored the rules, well, then… that’s on you.
Unless they were flipping books then, it’s going to be hard to justify you were running a business with inventory from 20+ years ago from comic book collectible purchases. Even retaining those receipts, they’re likely gonna tell you too bad so sad, you made profit on most of the purchases so pay up! If you can’t deduct the original cost or didn’t deduct as inventory back in 1999, that’s really on you I think. The receipts are probably moot now, just pay the taxes on your income now is what they’ll likely say.
Receipts only have to be shown if audited. You don’t have to send a pile of copied receipts automatically.