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Thread: IRS 1099-K Threshhold Change

  1. #1
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    IRS 1099-K Threshhold Change

    The IRS dropping the threshold from $20,000 to $600 sure seems like it'll have bad consequenses for the 'garage sale' level of sellers.


    Any used parts sellers considering different avenues instead of Ebay and the like? Is the scene going to revert back to local, cash type dealing? Is Craigslist going to liven back up?
    The story of three wheels and a man...

  2. #2
    6bt's Avatar
    6bt is offline At The Back Of The Pack Arm chair racerAt the back of the pack
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    Did that officially go through? That burns me to no end. Any idea of it's per transaction, or the limit for the year?

    Sent from my moto z4 using Tapatalk

  3. #3
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    CASH for "anything" over 599.** Going forward......and don't deposit it unless u intend to pay taxes on it.

    shep
    Last edited by Shep1970; 12-23-2021 at 12:41 PM.

  4. #4
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    I understand there to be no minimum transactions now instead of the previous 200 limit, but starting 2022 it will be the yearly total of $600 instead of the previous $20,000.

    This affects payment businesses like PayPal and Venmo, which a lot of low volume sellers use, along with actual businesses.

    Not having a purchase recipet for an item to prove a loss during the sale means a seller could be paying taxes on 30+ year old trike they sold for more than $599.

    I'm done selling on Ebay anyway and stopped about a year ago. No more than I sold, after all was said and done, the money that finally reached my bank account was't worth the effort.

    All of those payment transaction businesses may be hit pretty hard by this as sellers who can, shift away from them. If possible, the old money order may arrise again. Slower and not as many conveniences/protections, but I've used money orders a heck of a lot. Of course, that was back in the day of the pay phone.


    Supposedly, the guberment is doing this to stop big business tax fraud, but it looks like big business is doing it to kill off more small ones.
    The story of three wheels and a man...

  5. #5
    kiser's Avatar
    kiser is offline Just Too Addicted Arm chair racerJust too addicted
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    That's the plan and has been for years, put out small business so big ones thrive. Sounds like a monopoly doesn't it??? Think of all the little towns with mom and pop shops that have dried up because of big box stores, it's really a shame.

  6. #6
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    Yeah after marketplace told me they needed tax info for 2022 its back to Craigslist and swap meets for sure.

  7. #7
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    I guess the question would be does the IRS reporting mandate pertain only to 3rd party payment processing or value of sales amount?...regardless of payment avenues.....which would seem like online giants eBay and Amazon would do.

    For the small seller with creative tax reporting solutions it may be a positive......like being able to report expenses or a loss.

  8. #8
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    They changed it from $600 to $10,000 and it's still a proposal in the Build Back Better bullshit, not law. Hopefully it doesnt ever go into law. The Build Back Better (Bullshit) is the budget reconciliation that Manchin is holding up right now. Funny how they say the taxes will be raised on the rich but they're going to squeeze anyone who makes $10,000 on the side.

    https://youtu.be/6EN5eJf5h_k
    Looking for a Bassani silencer for a 2nd gen tecate, the style with the movable mount. 1st gen will work

  9. #9
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    Craigslist is going to do the same as market place if there are asking for tax info. We are going to have to start advertising in the news papers again ��
    If its on the internet its got to be true they can't put any lie's on the internet

  10. #10
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    Quote Originally Posted by 86T3 View Post
    They changed it from $600 to $10,000 and it's still a proposal in the Build Back Better bullshit, not law.

    https://youtu.be/6EN5eJf5h_k
    Thanks for the update.
    The story of three wheels and a man...

  11. #11
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    Hey guys, I've been meaning to update my comment. I was kind of wrong, I didn't realize there were more than 1 way the Biden administration was trying to steal our money. Cash app services and FB marketplace are required to report combined sales over $600 now. The information I gave in the previous post was strictly for bank accounts. I apologize for giving wrong info. I looked it up for 15 minutes before I made my original post, it's just very hard to find real info anymore. Good luck with all your cash sales this year
    Looking for a Bassani silencer for a 2nd gen tecate, the style with the movable mount. 1st gen will work

  12. #12
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    My wife warned me about this. If you sell a ton online you will loose some to tax money. I already went over the $600 limit in 10 days selling on eBay this year.

    Is it fair...not sure. We have gotten away with it awhile but it still burns me up as its been a way for me to pay for items I need in pinch. FB sucks to sell if it's more then $50...craigslist was always the best but it died big time in last few years. But I never stopped looking on there.

    The biggest thing is if you have high dollar parts like trikes or now vintage atvs...no one is going to shell out locally on CL or FB for them. That's where eBay is still king for high end nice stuff, and with that you need a bank account...and with that comes taxes.

    The market online will go two ways....more expensive meaning sellers will stop offering free shipping and we will pay, or the stuff is just going to dry up once and for all.

    I listed atc350x and 200x parts on FB...nothing, no bites and its good stuff! Been sitting months on tons of 300ex stuff also...nothing. After NOV 1 nothing sells. April comes everything sells.

    If you only have a few items to sell a year it's not going to affect anyone. I was reported to IRS when it changed to 200 transaction / $20K....let me tell you no one told me, no one sent me a 1099. Nothing at all. I was clueless. That ordeal cost me $9,000 in back taxes for 2 years, they wanted $30K since they were baised it off what was accepted to paypal, not all my costs / fees. I've kept records ever since and have it down a nice excel spread sheet. Tracking numbers and all. Then they screwed it up again. I do not have to track transactions but now track gross and net profits then run it thru my formula for tax bracket I fall into. This lets me see if I am still making a profit per sale if this crap goes thru. Thats my own little insurance now. It's a bunch more work and time is money.

    I started my online selling when I was laid off, it paid me until my 1st unemployment check came which back 10 years ago or more was about 4 weeks. Biden prob never was laid off. He had no clue how hard it can be for some people. However as much as I do not like Biden I can't say I didn't see this coming. I was prepared for 20k then 15K than 10K etc...not actual online slaughte.

    You guys think this is bad...try owning crypto currency...they don't give you a 1099 at all. YOU have to kept track of what you sell, lend out etc....talk about a PITA I own 3 crypto currency's and lend it to businesses!

    I canceled every online cash app but paypal as it's safe and most have it. Next year might be my last selling online to make money. I already removed half of my online auctions. In all honesty is easier for me to work 4 hours a month over time and bank money....less hassle.

    I never wanted the governments stimulus money. I didn't need it. I worked, I wanted to work. I didn't spend it on stupid new ATVS and dirtbikes and SXS like everyone else did.....I saved it. Now they want to tax the hell out of us...ok you can have it back. NO MONEY is every free money. That was a trap many fell for.

    I'm highly upset by this for many reasons #1, I wanted to quit my job I freaking HATE to get deeper into online parting....now it's not worth my time, my gas, anything. It really took a little piece of hope away from me what I could be self employed and support my family and my daughter. Anything I buy now I still try and get free but I buy big parts lots now. I won't sell any of my complete running toys every again.

    The whole dynamic of the sport really changed and it's kind of not fun anymore. This is how I feel about the big picture on the sport and its prices now. Bidens tax was like the last kick in the nuts for the little guy trying on the side.


    I will ride with almost anyone...but I am not RIDEN with BIDEN!
    Last edited by oldskool83; 01-11-2022 at 12:03 AM.

  13. #13
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    That's what I looking for, is from people who've been doing this for a while and may have some options to suggest.

    I really need to clear some things out, but I'm not keen on paying taxes on things that've already been taxed when sold new. That, and online sellers fees for Ebay continue to become more burdensome. I have more small things than large and when it seems like half the profit is taken out of my hand and I'm the one who really done all the actual work to list, sell, and ship the item, buying one of those shipping containers and just storing everything for the foreseeable future seems like a better idea.

    Doesn't matter anyway when it's still all going through PayPal and they see it. If it's not listed as gift, then it'll be taxed.
    The story of three wheels and a man...

  14. #14
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    ebay takes higher fees now that they got rid of paypal. its about 14% total over all where it was 13.5% with pay pal. All in all if you offer free shipping you attact people but also you might as well just wash away 40% of you profits....this is why I am about done. Covid is the only thing keeping this going since everyone wants stuff yet. Just sell what you need stay under $599...that $599 deposited into you bank account, not gross profit, its net profit. A Lot of people will be lost already.

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