Yup, you retain receipts when they ask for proof of what you’re claiming on your returns.
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So based on what your saying. If I sold my games after playing them but didn’t originally claim it as “Business purchase” so I can’t deduct them. Yet they can collect on capital gain on a item in which I clearly paid for. So for every garage sales/flea market sales falls under this category. Corruption at its finest.
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If you made profit from them, yes. You only add the profit made as income.
Normally the IRS isn’t going to care about you selling stuff at a garage sale once or twice a year. Most of the time you are selling the stuff at a loss. Nobody makes profit from their original purchases at garage sales. If you’re doing a flea market every weekend, that’s seen as you running a business and you are doing it to make profit, so yes, you should be paying taxes on such income.
I guess the whole point of the threshold was, there were too many people working the loop holes to keep their sales under 20k and never filing their profits, lowering is going to fix those loop holes for all the people who are working the system.
The funny thing is, these reporting income laws is nothing new. The IRS has always stated one must claim all income (profits) regardless of the $600, 20k or whatever. This is nothing new. Pay your taxes is the bottom line on money made. It’s not corruption per se, it’s just always been the law.
And it wasn’t likely “business” related, it likely fell under your default deduction unless you were itemizing everything you bought, which most people don’t since they don’t keep receipts for everything they buy.
I guess there might be a misconception for some people who think this new law is lowering the threshold of when one must pay taxes and when one doesn’t.
This law is only requiring 3rd party selling platforms to report any income one makes when it’s over $600 from 20k originally. The actual law on paying taxes has always been, claim all your income after any deductions. If you bought an item for $10 in 2018 and sold it for $100 in 2022, you need to add $90 as income to your taxes on money made. This is nothing new, it’s always been the law. Just because eBay and other 3rd party platforms were not obligated to generate a 1099 and report the income until it reached 20k or more did not excuse you from paying taxes on such income.
Hope that clarifies this whole situation as the actual law has never changed when paying income taxes.
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In the year 2022, a couple/three grand would have made a whole lot more sense. 600 feels like bullshit because it is bullshit
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It’s still sort of moot though. That’s just the threshold for 3rd parties to generate a 1099 and report the income. Even if you sell only $200 and if any of that is profit made, you must report it to the IRS. Heck, $50 is profit, report it. The law hasn’t changed for reporting your income, the law only changed in making 3rd party selling platforms to report such income to the IRS.
yea… I can’t really say it on here, but that’s not happening. I haven’t made a penny this year, afterall. Clearly
Yup and be careful what you say publicly. An audit finds you saying one thing while telling them something else will only land you in that much more trouble. 
Did my multiple local show this weekend. No one was buying.
Had my 6th yard sale the weekend before. No one showed up.
Had a few folks come to my house for listings i had on FB. No one bit.
Times are just tough I guess these days 
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Im hearing things here and there that this issuance of 1099 is going to be put on hold for a year. Not sure if true yet, but there ya have it.
If true, i will be listing TONS of BINs for the remainder of this year. 
Cant imagine why
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Says “not Required to report.”
People Still might get 1099’s from eBay, mercari, etc.
Much less likely though. I know Maryland is one state that will.
The other thing is that I don’t see eBay or Mercari Listed as examples of third party settlement organizations…although I believe they are.
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I can’t guarantee it, but I would be shocked if eBay still reported. They openly were asking users to contact their congressperson about the change and pushing to get people to stop the threshold from being lowered.
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Looks like they couldn’t fill those 86,000 IRS positions they added lol😂
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I put alot of stuff up.
If nothing by Dec 31, it all comes back down on Jan 1.
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Barely skirting the below 20k on both mercari and eBay so I’m safe
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I have gotten a 1099 from eBay for years anyway. But Maryland does suck in general. High taxes. Not a lot back for it.
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I’m still keeping track and showing the IRS anything I made went back into comics regardless what forms I do or do not get. You don’t mess with two people:
Disney
The IRS
So that’s what I’m up to.
With a Category/Title field such as this one, I know when not to respond publicly.
And respond I shall not, but I sure do have alot to say. And most start with not so nice words about both of them
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