stl_ben Posted January 18, 2022 Share Posted January 18, 2022 Yeah always keep track of costs....because unless everything was free you didn't "make" 10k. Quote Link to comment Share on other sites More sharing options...
ntslash Posted January 18, 2022 Share Posted January 18, 2022 9 hours ago, somethingvinyl said: From July 2020 through August 1 2021, I made more than 10K selling records online. I guess I won't be doing that again without keeping track of what I spend, cost of supplies, shipping, other expense, etc. You should probably delete this post. If the IRS sees this, you will owe the government money. You can't sell 10k worth of stuff without paying any taxes on it. At least not legally. The new law doesn't mean you now have to pay taxes on these sales. This has always been the case. The new law just changes the requirements for companies like PayPal and Venmo in terms of who gets a 1099 and how they have to report things. stl_ben 1 Quote Link to comment Share on other sites More sharing options...
dantheriver Posted January 19, 2022 Share Posted January 19, 2022 It’d be so sick if the IRS was lurking VC looking for tax offenders. smailtronic, Bronchitis and Snaggle Von Swift 3 Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 19, 2022 Share Posted January 19, 2022 10 hours ago, ntslash said: You should probably delete this post. If the IRS sees this, you will owe the government money. You can't sell 10k worth of stuff without paying any taxes on it. At least not legally. The new law doesn't mean you now have to pay taxes on these sales. This has always been the case. The new law just changes the requirements for companies like PayPal and Venmo in terms of who gets a 1099 and how they have to report things. You should probably not take a lasting snapshot by way of forum quoting if you’re serious about him removing his post. somethingvinyl, Snaggle Von Swift and smailtronic 3 Quote Link to comment Share on other sites More sharing options...
ntslash Posted January 19, 2022 Share Posted January 19, 2022 27 minutes ago, dantheriver said: It’d be so sick if the IRS was lurking VC looking for tax offenders. The IRS is everywhere! Quote Link to comment Share on other sites More sharing options...
somethingvinyl Posted January 19, 2022 Share Posted January 19, 2022 11 hours ago, ntslash said: You should probably delete this post. If the IRS sees this, you will owe the government money. You can't sell 10k worth of stuff without paying any taxes on it. At least not legally. The new law doesn't mean you now have to pay taxes on these sales. This has always been the case. The new law just changes the requirements for companies like PayPal and Venmo in terms of who gets a 1099 and how they have to report things. I most definitely filed the appropriate documentation. But I also wasn't worried because I didn't get a 1099. Quote Link to comment Share on other sites More sharing options...
dreamover Posted January 26, 2022 Share Posted January 26, 2022 just got my 1099-k from paypal. just realized it's also kind of bullshit because until recently you accepted all the taxes from discogs purchases and then paid discogs. but the amount that paypal reports as income also includes all the taxes you had to pay back. Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 26, 2022 Share Posted January 26, 2022 21 minutes ago, dreamover said: just got my 1099-k from paypal. just realized it's also kind of bullshit because until recently you accepted all the taxes from discogs purchases and then paid discogs. but the amount that paypal reports as income also includes all the taxes you had to pay back. How much did you sell last year? I was under the impression that the changes discussed in this thread are being implemented this year, meaning that it’s something you need to track throughout 2022 and report in 2023 if you sell more than $600. I already filed my taxes which is kinda’ shit timing if PayPal wants to send me a 1099 for any reason. (I don’t think I made transactions or enough in sales to justify one, but I could be wrong.) Quote Link to comment Share on other sites More sharing options...
stl_ben Posted January 26, 2022 Share Posted January 26, 2022 24 minutes ago, dreamover said: just got my 1099-k from paypal. just realized it's also kind of bullshit because until recently you accepted all the taxes from discogs purchases and then paid discogs. but the amount that paypal reports as income also includes all the taxes you had to pay back. The discogs taxes are the sales tax on the item. 1099 reporting is for income tax. Both things have to be paid. 2 minutes ago, Derek™ said: How much did you sell last year? I was under the impression that the changes discussed in this thread are being implemented this year, meaning that it’s something you need to track throughout 2022 and report in 2023 if you sell more than $600. I already filed my taxes which is kinda’ shit timing if PayPal wants to send me a 1099 for any reason. (I don’t think I made transactions or enough in sales to justify one, but I could be wrong.) It depends on where you live, many states have already had that $600 threshold for a year or more, it is just expanding to all states now. I believe Dream is in IL which has had it for at least one year already. But yeah you can go onto your Paypal at any time and look under tax forms and see yours. Depending on your state and if you hit $600 or more in sales last year you would be required to file it. If paypal sends the 1099 and you don't list it when doing your taxes it is big red flag and I would expect a letter/bill from the IRS sooner than later. Derek™ 1 Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 26, 2022 Share Posted January 26, 2022 Great to know, thank you. I guess I'm keeping my eyes peeled [going forward] but in that Tax Documents tab I see a dropdown that only lists 2021, and shows it as empty. I guess I'll amend my taxes if something shows up in the mail but otherwise, I don't think I had enough sale activity to be worthy of a 1099 last year? Quote Link to comment Share on other sites More sharing options...
dreamover Posted January 26, 2022 Share Posted January 26, 2022 18 minutes ago, stl_ben said: The discogs taxes are the sales tax on the item. 1099 reporting is for income tax. Both things have to be paid. Sure - but the sales tax that was collected (and paid back to Discogs per invoice) shouldn’t be taxed as income, not to mention double-dinged by PayPal. Quote Link to comment Share on other sites More sharing options...
dreamover Posted January 27, 2022 Share Posted January 27, 2022 1 hour ago, Derek™ said: How much did you sell last year? I was under the impression that the changes discussed in this thread are being implemented this year, meaning that it’s something you need to track throughout 2022 and report in 2023 if you sell more than $600. I already filed my taxes which is kinda’ shit timing if PayPal wants to send me a 1099 for any reason. (I don’t think I made transactions or enough in sales to justify one, but I could be wrong.) something like $1200. Ben is right, because I'm in Illinois, the $600 threshold counts for 2021. But to those of you who always accurately pay taxes on all of your sales, without having an established business entity; how do you account for the expenses? Quote Link to comment Share on other sites More sharing options...
blueeyesgetboring Posted January 27, 2022 Share Posted January 27, 2022 I work off a 1099 as a tattoo artist without being an established business, when I file my taxes using turbo tax there is a more advanced section that costs more to file than with just a w2. In that section turbo tax allows me to itemize deductions or you can take the standard deduction which I often do because it is usually higher than my expenses and doesn’t require any itemization which I think makes me less likely to get audited? However I do have no idea what I am doing really but it’s the way I have filed for the last ten years without any trouble. Just annoying that it costs like $50 more to file even though the program only asks a few extra questions. Tommy 1 Quote Link to comment Share on other sites More sharing options...
blueeyesgetboring Posted January 27, 2022 Share Posted January 27, 2022 I don’t have a business ID number so turbo tax just uses my social security number to identify Quote Link to comment Share on other sites More sharing options...
stl_ben Posted January 27, 2022 Share Posted January 27, 2022 3 hours ago, dreamover said: something like $1200. Ben is right, because I'm in Illinois, the $600 threshold counts for 2021. But to those of you who always accurately pay taxes on all of your sales, without having an established business entity; how do you account for the expenses? I keep pretty detailed records of purchases and expenses. And paying things like sales taxes do count towards expenses. Quote Link to comment Share on other sites More sharing options...
dnl Posted January 27, 2022 Share Posted January 27, 2022 6 hours ago, dreamover said: just got my 1099-k from paypal. just realized it's also kind of bullshit because until recently you accepted all the taxes from discogs purchases and then paid discogs. but the amount that paypal reports as income also includes all the taxes you had to pay back. In Discogs, go to your Inventory page. Scroll down to Export CSV. Select the dates for 2021 and choose Marketplace Orders from the dropdown. This new Excel file will breakdown every transaction with Subtotal, Shipping paid, Fees charged, and Sales Taxes. Sum the taxes column to get the expenses in sales tax you paid. hallowken78 1 Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 27, 2022 Share Posted January 27, 2022 5 minutes ago, dnl said: In Discogs, go to your Inventory page. Scroll down to Export CSV. Select the dates for 2021 and choose Marketplace Orders from the dropdown. This new Excel file will breakdown every transaction with Subtotal, Shipping paid, Fees charged, and Sales Taxes. Sum the taxes column to get the expenses in sales tax you paid. This guy Excels. hallowken78, dnl, somethingvinyl and 1 other 1 3 Quote Link to comment Share on other sites More sharing options...
dnl Posted January 27, 2022 Share Posted January 27, 2022 (edited) My PayPal 1099-k reported $19k for last year. I sold a huge portion of my collection over the summer. I'm getting hit hard on TurboTax right now. Also, the fees you pay Discogs is a business expense too. Edited January 27, 2022 by dnl Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 27, 2022 Share Posted January 27, 2022 Congrats on doing what so many of us often daydream of. $19K through PayPal is quite a summer hustle. Quote Link to comment Share on other sites More sharing options...
unknown pleasures Posted January 27, 2022 Share Posted January 27, 2022 16 minutes ago, Derek™ said: Congrats on doing what so many of us often daydream of. $19K through PayPal is quite a summer hustle. Q: What's the easiest way to make $19k selling records on eBay? A: List $38k worth of records for half price. Derek™ 1 Quote Link to comment Share on other sites More sharing options...
Derek™ Posted January 27, 2022 Share Posted January 27, 2022 10 minutes ago, unknown pleasures said: Q: What's the easiest way to make $19k selling records on eBay? A: List $38k worth of records for half price. I mean yeah, no doubt. Sometimes I ponder what it’d be like to sell it all and realize that the net gains must be brutal compared to the bigger picture. PayPal fees + shipping costs + Discogs cuts, alone. Those total collection median / max values on Discogs are pretty lofty projections after you shake out each sale to see what really lands in your pockets. Quote Link to comment Share on other sites More sharing options...
dnl Posted January 27, 2022 Share Posted January 27, 2022 This does make me reconsider the best way to sell it all if that time ever comes. If I knew a decade ago that I should be keeping receipts on everything I buy, I might have done it that way. Quote Link to comment Share on other sites More sharing options...
chiefwahoo Posted January 27, 2022 Share Posted January 27, 2022 14 hours ago, dreamover said: But to those of you who always accurately pay taxes on all of your sales, without having an established business entity; how do you account for the expenses? That's the rub...you're not allowed to take any expenses for a hobby. And virtually nobody posting here is going to qualify under IRS regulations as a legit business as opposed to hobby loss/income criteria. We are stuck putting the whole damn amount as income and paying the taxes on it. As someone mentioned, that's always been the rule anyway, we're now just being held accountable. Same thing with internet purchases. Before it was automatically taxes, who out there admitted on their state tax returns that they had made untaxed internet purchases and then ponied up the state tax due? Same concept. Quote Link to comment Share on other sites More sharing options...
Tommy Posted January 27, 2022 Share Posted January 27, 2022 Flipping is now less profitable, I guess some will be happy about that Quote Link to comment Share on other sites More sharing options...
stl_ben Posted January 27, 2022 Share Posted January 27, 2022 1 hour ago, satoshi said: Flipping is now less profitable, I guess some will be happy about that It's only less profitable if they went from doing something illegal before (not paying their taxes). I don't see it making much of a difference to anyone that flips any considerable amount of items as they were already paying taxes. Quote Link to comment Share on other sites More sharing options...
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