Do over 200 transactions or $20k in payments from PayPal? Take note

Tomi Hawk wrote in post #10314064
Ooook .. so lets let those illigal immigrants keep sending their money back home to the tune of 8 million bucks a year .. noooo biggieee ...

LMFAO! Hey Uncle Sam .. look in your own back-yard .. you'll find even more cob-webs!

The amount of tax revenue that the IRS should be making from internet sales is orders of magnitude higher than any revenue they might make if they could get minimum wage earning illegals working in the US to pay taxes on the money they send home. Not to mention the potential loss of spending money the typical American household might incur if we could magically make all the illegals disappear and had to pay $15 or more for a head of lettuce at the grocery store.

Does this thread really have to go political? Politics and religion are surefire ways to derail a thread. This is important for those that own high end gear and I'd hate to see it degrade into a political flamefest.

Money orders it is?

I keep on buying and selling high end gears and that's not even for profit. I'll have to pay some just to have this fun

alpha_1976 wrote in post #10326489
I keep on buying and selling high end gears and that's not even for profit. I'll have to pay some just to have this fun

For those that find themselves selling things frequently for less than they paid this could be a blessing in disguise by providing a net deduction. It's a hassle with the paperwork but if you take a net loss of several thousand in a year it could translate into significant tax savings.

K6AZ wrote in post #10327294
For those that find themselves selling things frequently for less than they paid this could be a blessing in disguise by providing a net deduction. It's a hassle with the paperwork but if you take a net loss of several thousand in a year it could translate into significant tax savings.

I doubt this will be allowed (reporting a loss on the same 1099K form), this is most likely going to be used as an audit tool in the beginning. If you don't report extra income but have this 1099K filed, it could raise the likelihood of an audit. Will be interesting...

I think you may be able to write off such losses if you make a living using said equipment (occupational expense). I don't think you can write off these losses if you use the equipment for personal entertainment.

aubsxc wrote in post #10328273
I think you may be able to write off such losses if you make a living using said equipment (occupational expense). I don't think you can write off these losses if you use the equipment for personal entertainment.

That won't go under the 1099K, that goes under the other myriad of forms used for reporting personal business expenses vs income. I have two sets of these each year to do, one for myself and my wife, on top of the normal employment income stuff. I don't know how this will play into my reporting of my extra income, this is really quite odd.

TeamSpeed wrote in post #10328252
I doubt this will be allowed (reporting a loss on the same 1099K form), this is most likely going to be used as an audit tool in the beginning. If you don't report extra income but have this 1099K filed, it could raise the likelihood of an audit. Will be interesting...

Actually, by getting a 1099 of any sort you can write of the expense of the gear. If you buy a 7D for $1600 and sell it later for $1200 that $1200 was not income. We can get into use and depreciation but I'll leave that to someone who does taxes for a living, I have enough trouble doing my own taxes and getting schedule C right every year.

K6AZ wrote in post #10328308
Actually, by getting a 1099 of any sort you can write of the expense of the gear. If you buy a 7D for $1600 and sell it later for $1200 that $1200 was not income. We can get into use and depreciation but I'll leave that to someone who does taxes for a living, I have enough trouble doing my own taxes and getting schedule C right every year.

I use turbotax, so it will be interesting to see how this is going to screw up the filing since I already download my paypal log for the year and call out expenses and revenue. This is going to mess up that process, perhaps. Like others stated, might as well send out the yard sale police and track your income there too.

TeamSpeed wrote in post #10328329
I use turbotax, so it will be interesting to see how this is going to screw up the filing since I already download my paypal log for the year and call out expenses and revenue. This is going to mess up that process, perhaps. Like others stated, might as well send out the yard sale police and track your income there too.

Honestly I haven't even started to look into the correct way to handle it on the taxes since it will start for the 2011 tax year. We have 22 months to figure it out.

I don't know. Sounds like a reasonable threshhold. Where would you put it? When does a hobby become a business?

I think in most states, if you buy and sell more than 12 used cars in a year, you're a dealer and need to be licensed and collect and pay sales taxes as well as income taxes. If you're doing $20K a year on ebay, that ain't no garage sale.

And that's at the bottom. I'm sure there are folks grossing six figures under the table. They're stealing from the rest of us. Heck yeah I want the IRS on their tail.

Keep records and pay your taxes. Price of living in America.

drsilver wrote in post #10328371
I don't know. Sounds like a reasonable threshhold. Where would you put it? When does a hobby become a business?

I think in most states, if you buy and sell more than 12 used cars in a year, you're a dealer and need to be licensed and collect and pay sales taxes as well as income taxes. If you're doing $20K a year on ebay, that ain't no garage sale.

And that's at the bottom. I'm sure there are folks grossing six figures under the table. They're stealing from the rest of us. Heck yeah I want the IRS on their tail.

Keep records and pay your taxes. Price of living in America.

The problem is for every tax cheat they catch they're probably inconveniencing 100 people who are not running a used gear business. A good example would be a package of gear I recently bought here. The package included a 1D4, 8 lenses, and some other accessories. I only needed the 1D4 and the 70-200 f/4 IS. I sold everything else for pretty much what I paid for it and after covering the shipping took a small loss. Combines with other gear I've sold off this year upgrading I'm very close to the dollar threshold. It won't be a big deal for me since I already deal with a bunch of 1099s every year, the only problem will be figuring out the correct way to report the gross and write off the cost. For those who usually file the short forms it's going to be a major problem.

K6AZ wrote in post #10328448
The problem is for every tax cheat they catch they're probably inconveniencing 100 people who are running a used gear business. A good example would be a package of gear I recently bought here. The package included a 1D4, 8 lenses, and some other accessories. I only needed the 1D4 and the 70-200 f/4 IS. I sold everything else for pretty much what I paid for it and after covering the shipping took a small loss. Combines with other gear I've sold off this year upgrading I'm very close to the dollar threshold. It won't be a big deal for me since I already deal with a bunch of 1099s every year, the only problem will be figuring out the correct way to report the gross and write off the cost. For those who usually file the short forms it's going to be a major problem.

I'll ask again. Where do you draw the line? I'm with on the feeling that paying taxes is damned inconvenient. Still ... If you're flipping $20K/year in gear, you're a dealer.

drsilver wrote in post #10328665
I'll ask again. Where do you draw the line? I'm with on the feeling that paying taxes is damned inconvenient. Still ... If you're flipping $20K/year in gear, you're a dealer.

Read some of the other provisions besides the 1099 requirements. It's a nightmare.

Also, look at the price of some of this photo gear. I'm no dealer and I may go over $20k this year.