LIGMA_BALLZ Posted January 7, 2022 Share Posted January 7, 2022 If I understand it correctly all PayPal/Venmo/cash app totals over $600 for goods and services get reported to the irs now. So any PayPal transactions through discogs or eBay will now be reported to the IRS on a 1099. any thoughts? Quote Link to comment Share on other sites More sharing options...
hallowken78 Posted January 7, 2022 Share Posted January 7, 2022 1 minute ago, crossedoutname said: If I understand it correctly all PayPal/Venmo/cash app totals over $600 for goods and services get reported to the irs now. So any PayPal transactions through discogs or eBay will now be reported to the IRS on a 1099. any thoughts? That's my understanding and it really bites. Will definitely deter me from using those services, though I'm not sure what the alternative is going to be... Quote Link to comment Share on other sites More sharing options...
burntwolf Posted January 7, 2022 Share Posted January 7, 2022 ever since discogs started automatically adding sales tax my sales cratered for whatever reason. maybe ppl just don't want my shit anymore. Quote Link to comment Share on other sites More sharing options...
LIGMA_BALLZ Posted January 7, 2022 Author Share Posted January 7, 2022 1 minute ago, burntwolf said: ever since discogs started automatically adding sales tax my sales cratered for whatever reason. maybe ppl just don't want my shit anymore. Talking income tax, not state sales tax. Uncle joe wants his cut of your discog sales now Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 7, 2022 Share Posted January 7, 2022 11 minutes ago, crossedoutname said: If I understand it correctly all PayPal/Venmo/cash app totals over $600 for goods and services get reported to the irs now. So any PayPal transactions through discogs or eBay will now be reported to the IRS on a 1099. Is that... a running total of $600 across the entire year? Or exclusive to sales that exceed $600? Don't know about you guys but I'm absolutely not selling $600 records left and right. Quote Link to comment Share on other sites More sharing options...
ntslash Posted January 7, 2022 Share Posted January 7, 2022 (edited) Keep in mind here that you only have to pay tax on the profits you make. You'll file this as self-employment tax. If you sell $1,000 worth of shit in discogs but you paid $900 for it, you only owe the government taxes on the $100 in profit. You'll report $1000 in sales and $900 in expenses. Edit: you might need to file this as capital gains tax. Records likely fall under collectibles here, in which case your net gains are taxed at 28% regardless of income bracket. Fun stuff. What this really means is that prices are going to go up to make up for the additional hit to profit. Edited January 7, 2022 by ntslash chrisapple 1 Quote Link to comment Share on other sites More sharing options...
stl_ben Posted January 7, 2022 Share Posted January 7, 2022 eBay transactions are no longer through paypal, but they also send out 1099 as will any company you process sales through. Depending on what state you live in, this isn't new. It is nation wide now though. That being said you should have been paying taxes on the sales even if those companies were not sending those reports directly to the IRS. But yeah keep track of what you are spending and most likely unless everything you buy sells for HUGE amounts, the profit margin is probably pretty slim that you are paying taxes on. Quote Link to comment Share on other sites More sharing options...
mitchard Posted January 7, 2022 Share Posted January 7, 2022 Just now, Derek™ said: Is that... a running total of $600 across the entire year? Or exclusive to sales that exceed $600? Don't know about you guys but I'm absolutely not selling $600 records left and right. It's the total throughout the year. https://www.nbcnews.com/news/venmo-paypal-zelle-must-report-600-transactions-irs-rcna11260 Quote Link to comment Share on other sites More sharing options...
ntslash Posted January 7, 2022 Share Posted January 7, 2022 1 minute ago, Derek™ said: Is that... a running total of $600 across the entire year? Or exclusive to sales that exceed $600? Don't know about you guys but I'm absolutely not selling $600 records left and right. If your total sales are over $600, they will send you a 1099-misc at the start of 2023. Technically speaking, you should always pay taxes on any income you have. Most people just don't do it unless there is an official document. Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 7, 2022 Share Posted January 7, 2022 Gotcha'. But what measures are there – if any – to prevent someone from saying "yup, I paid $50 for this LP and sold it for $50"? Is there going to be a requirement to upload an original receipt for all "expenses" [records bought and then] sold? Quote Link to comment Share on other sites More sharing options...
zacooper Posted January 7, 2022 Share Posted January 7, 2022 8 minutes ago, Derek™ said: Gotcha'. But what measures are there – if any – to prevent someone from saying "yup, I paid $50 for this LP and sold it for $50"? Is there going to be a requirement to upload an original receipt for all "expenses" [records bought and then] sold? They can audit you and expect you to have the receipts to prove it. If you don’t, then they’ll tax you more since you can’t prove the cost basis. chrisapple 1 Quote Link to comment Share on other sites More sharing options...
LIGMA_BALLZ Posted January 7, 2022 Author Share Posted January 7, 2022 8 minutes ago, Derek™ said: Gotcha'. But what measures are there – if any – to prevent someone from saying "yup, I paid $50 for this LP and sold it for $50"? Is there going to be a requirement to upload an original receipt for all "expenses" [records bought and then] sold? Yea, you’ll have to provide some proof of purchase, reciept or something Quote Link to comment Share on other sites More sharing options...
Tommy Posted January 7, 2022 Share Posted January 7, 2022 42 minutes ago, crossedoutname said: If I understand it correctly all PayPal/Venmo/cash app totals over $600 for goods and services get reported to the irs now. So any PayPal transactions through discogs or eBay will now be reported to the IRS on a 1099. any thoughts? Seanbo, copelandkid, faaip de oiad and 7 others 3 2 5 Quote Link to comment Share on other sites More sharing options...
agua Posted January 7, 2022 Share Posted January 7, 2022 I mean, you shouldve been doing taxes anyway? Quote Link to comment Share on other sites More sharing options...
mitchard Posted January 7, 2022 Share Posted January 7, 2022 2 minutes ago, agua said: I mean, you shouldve been doing taxes anyway? chrisapple, jonnywreck, tape and 5 others 3 1 4 Quote Link to comment Share on other sites More sharing options...
Dhesketh Posted January 7, 2022 Share Posted January 7, 2022 32 minutes ago, zacooper said: They can audit you and expect you to have the receipts to prove it. If you don’t, then they’ll tax you more since you can’t prove the cost basis. I mean, if you’re pretty honest about what you paid, the likelihood of an audit seems pretty slim. mitchard and chrisapple 2 Quote Link to comment Share on other sites More sharing options...
mitchard Posted January 7, 2022 Share Posted January 7, 2022 1 minute ago, Dhesketh said: I mean, if you’re pretty honest about what you paid, the likelihood of an audit seems pretty slim. Yeah. Unless you're a professional reseller with larger totals claiming close to no profit, I can't imagine the audit risk would be high unless you have some other red flags. chrisapple 1 Quote Link to comment Share on other sites More sharing options...
Dhesketh Posted January 7, 2022 Share Posted January 7, 2022 2 minutes ago, mitchard said: Yeah. Unless you're a professional reseller with larger totals claiming close to no profit, I can't imagine the audit risk would be high unless you have some other red flags. Exactly. Plus, semi causal sellers are small potatoes to the irs. Think about how many new tax reports they’re going to get from this. Quote Link to comment Share on other sites More sharing options...
Fowty Dollaz Posted January 7, 2022 Share Posted January 7, 2022 I'm gonna go out on a limb and say that music sales occupied exactly 0% of the lawmakers' minds when drafting this. chrisapple, YesPlease and tape 2 1 Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 7, 2022 Share Posted January 7, 2022 Yeah. I don't sell frequently enough (or in large enough volumes) to really be "stung" by this. It's the principle I find to be the biggest pain in the dick. An additional 15% cut [on profits] on top of sales tax? On top of Paypal fees? And submission of paperwork for the ~10-15 records I may sell throughout a calendar year? Fuck right off. faaip de oiad, copelandkid, chrisapple and 4 others 7 Quote Link to comment Share on other sites More sharing options...
ZeroNowhere Posted January 7, 2022 Share Posted January 7, 2022 I heard next year they're going to start taxing farts. I'm fucked. meatrocket8 1 Quote Link to comment Share on other sites More sharing options...
Tommy Posted January 7, 2022 Share Posted January 7, 2022 29 minutes ago, ZeroNowhere said: I heard next year they're going to start taxing farts. I'm fucked. Shower farts are tax free copelandkid, somethingvinyl, faaip de oiad and 1 other 1 1 2 Quote Link to comment Share on other sites More sharing options...
ntslash Posted January 7, 2022 Share Posted January 7, 2022 The odds of being audited are very very small unless you make a big mistake or do something obviously suspicious. Just be as honest as possible. You don't have to provide proof on your actual tax forms, but you will if you are audited. Quote Link to comment Share on other sites More sharing options...
SaulManella Posted January 7, 2022 Share Posted January 7, 2022 Imagine paying taxes lol. Bunch of cucks! Tommy and andynz 1 1 Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 7, 2022 Share Posted January 7, 2022 6 minutes ago, ntslash said: The odds of being audited are very very small unless you make a big mistake or do something obviously suspicious. Just be as honest as possible. You don't have to provide proof on your actual tax forms, but you will if you are audited. I guess there's value in now logging / monitoring the cost of every record I buy, but... man, what an unnecessary headache. And even if an audit occurs – slim as that chance may be – simply referring to a spreadsheet won't be enough. I'm pretty good about saving e-mail receipts these days, but shit from 10+ years ago that I won on eBay? Not so much. Quote Link to comment Share on other sites More sharing options...
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