Has anyone received PayPal or eBay 1099-k yet?

[kingchromium24]

Originally Posted by KhalDrogo

You lost $40k in sports cards but can’t afford a CPA? Wow.

Read above...I have one. They handle all of it for me. Nobody ever said I was filing myself, lol.

[KhalDrogo]

Originally Posted by kingchromium24

Read above...I have one. They handle all of it for me. Nobody ever said I was filing myself, lol.

You and your CPA will eventually end up in federal prison. Good luck.

[jlzinck]

Originally Posted by kingchromium24

Why when it is true. I had the same thing happen in 2020. I sent them all my PAYPAL payments for every $ spent along with every $ sold. Added on my costs of monthly internet, electricity, postage, and supplies.

Rolled the unsold items over as inventory and came out with about a $40K loss

I sent in all receipts and reports from PAYPAL and nothing was questioned.

I will do the same thing this year.

This is GOLD Jerry

[Turd Ferguson]

I read that the threshold for federal is $5K in 2024 (didn't see anything about number of transactions) - does anyone know if that set in stone?

[asujbl]

Originally Posted by kingchromium24

I was already audited. Not sure what there is to report. I claimed the income on my taxes. Claimed all the expenses on my taxes. Sent in all receipts showing money spent and money received. The portion of sports cards showed a net loss of $40K. What is hard to believe or wild or anything else. If I have documents to back everything up, then there is nothing to report.

IRS came back and asked for documentation and sent them everything. Everything I purchase is paid through PAYPAL, including postage. Everything I sell comes back into PAYPAL.

Are you suggesting I should just enter in my income from sales and not put any expenses?? I dont file anything on my own, lol, I have an accountant who fills out all the boxes and does my taxes for me. Not like I am just making up numbers on turbotax

I don't believe a single word of this

Your CPA is absolute garbage if this is accurate. I should report him

This is the mole hair sweater

[base set]

Originally Posted by Turd Ferguson

I read that the threshold for federal is $5K in 2024 (didn't see anything about number of transactions) - does anyone know if that set in stone?

Maybe we read the same article, from a news site. Afterwards I had the same question as you. So just now I went to The Google and seemed to find something that is just about as set in stone as you can get:

https://www.irs.gov/newsroom/irs-ann...der%20concerns.

I say ‘just about’ because Congress would currently have 334 days to change things.

[imbluestreak23]

Still waiting on my measly small 1099 from Google

[ElContador]

Originally Posted by kingchromium24

I was already audited. Not sure what there is to report. I claimed the income on my taxes. Claimed all the expenses on my taxes. Sent in all receipts showing money spent and money received. The portion of sports cards showed a net loss of $40K. What is hard to believe or wild or anything else. If I have documents to back everything up, then there is nothing to report.

IRS came back and asked for documentation and sent them everything. Everything I purchase is paid through PAYPAL, including postage. Everything I sell comes back into PAYPAL.

Are you suggesting I should just enter in my income from sales and not put any expenses?? I dont file anything on my own, lol, I have an accountant who fills out all the boxes and does my taxes for me. Not like I am just making up numbers on turbotax

I'm not sure what the issue is if you are set up as a business and trying to make a profit (i.e. not as a hobbyist or investor). If you bought $100,000 of cards, sold $60,000 of what you bought for $20,000 because they unexpectedly lost value (plus other expenses to run your business), and have $40,000 remaining cards to sell in a future year.

[asujbl]

Originally Posted by ElContador

I'm not sure what the issue is if you are set up as a business and trying to make a profit (i.e. not as a hobbyist or investor). If you bought $100,000 of cards, sold $60,000 of what you bought for $20,000 because they unexpectedly lost value (plus other expenses to run your business), and have $40,000 remaining cards to sell in a future year.

Tell me you didn't read the thread without telling me you didn't read the thread...

"Got mine today....23 transactions for a total of $12,000 for the year.
IF I am reading correctly, I fall below the threshold of the 200/$20K, however, PAYPAL says they are providing my 1099 to the IRS, so I assume I have to report it?

My inkling is to go ahead and report because my expenses/purchases will be quadruple sales totas and will really up my refund!"

[theshowandme]

Over/Under 24 months before we start hearing of people going to prison or having heavy fines levied against them for not reporting taxable income?

[ElContador]

Originally Posted by asujbl

Tell me you didn't read the thread without telling me you didn't read the thread...

"Got mine today....23 transactions for a total of $12,000 for the year.
IF I am reading correctly, I fall below the threshold of the 200/$20K, however, PAYPAL says they are providing my 1099 to the IRS, so I assume I have to report it?

My inkling is to go ahead and report because my expenses/purchases will be quadruple sales totas and will really up my refund!"

In another post he said he rolled unsold into future years as inventory. If someone is set up and meets the requirements as dealer and lose money on the specific cards they sold, why would they not be able to deduct those losses?

[Blamo]

You should consider renting the area of your basement where you run your card business to yourself and report it on Sch E if you have any passive losses you want to free up.

Also, if you hold cards of a player who passes away, you get to step up the basis to the fair market value as of the date of death.

Finally, and this is most important, the equipment you use to trim cards is Section 1245 property and you have to recapture the depreciation when you sell it.

Happy tax season. Get those deductions!

[mfw13]

Originally Posted by theshowandme

Over/Under 24 months before we start hearing of people going to prison or having heavy fines levied against them for not reporting taxable income?

Over.....our judicial system is so overwhelmed that even if there were enough prosecutors around to charge people for this kind of stuff, there aren't enough judges to try all the cases.

What people forget is that the prosecutor (i.e. the DA's office) has to decide that it's worthwhile to spend the time and effort to prosecute miscreants....and most of the time it's not (why is why so much low-level crime goes unpunished).

[asujbl]

Originally Posted by ElContador

In another post he said he rolled unsold into future years as inventory. If someone is set up and meets the requirements as dealer and lose money on the specific cards they sold, why would they not be able to deduct those losses?

Just hit me over the head with a hammer

[ElContador]

Originally Posted by asujbl

Just hit me over the head with a hammer

You got it! If someone is set up and meets the requirements as dealer and lose money on the specific cards they sold, why would they not be able to deduct those losses?

[QuinEarlyDoucet]

Here for asujbl fighting

[asujbl]

Originally Posted by QuinEarlyDoucet

Here for asujbl fighting

I’m out. It’s not as fun as it used to be

I’ll come back for the audits

[ElContador]

Originally Posted by asujbl

I’m out. It’s not as fun as it used to be

I’ll come back for the audits

I'm not looking for a fight but I'm curious why people are definite in dismissing the other poster's claims about deducting his losses. Doesn't it largely depend on how their activity is classified?

[theshowandme]

how many people in here are CPAs?

[asujbl]

Originally Posted by ElContador

I'm not looking for a fight but I'm curious why people are definite in dismissing the other poster's claims about deducting his losses. Doesn't it largely depend on how their activity is classified?

It’s absolutely does

You’re going down a different rabbit hole that isn’t worth the time

He doesn't just get to “up his refund” because he lost his quadruple X dollars after he didn’t even think he met the 20,000 and 200 made up threshold

This is a thread that will never last on Blowout

It’s why people pay people

[ElContador]

Originally Posted by asujbl

It’s absolutely does

You’re going down a different rabbit hole that isn’t worth the time

He doesn't just get to “up his refund” because he lost his quadruple X dollars after he didn’t even think he met the 20,000 and 200 made up threshold

This is a thread that will never last on Blowout

It’s why people pay people

Right, I have no idea anyone else's facts and circumstances here which is why I'm surprised so many people are sure someone's committing fraud or going to get audited (and lose).

[QuinEarlyDoucet]

Just quit while you’re ahead

Originally Posted by ElContador

Right, I have no idea anyone else's facts and circumstances here which is why I'm surprised so many people are sure someone's committing fraud or going to get audited (and lose).

[asujbl]

Originally Posted by ElContador

Right, I have no idea anyone else's facts and circumstances here which is why I'm surprised so many people are sure someone's committing fraud or going to get audited (and lose).

You have 20 posts and you don’t get it?

That’s a you problem

People can find me on LinkedIn when they need a CPA

I’m out

[ElContador]

Originally Posted by asujbl

You have 20 posts and you don’t get it?

What does the amount of posts I've made have to do with anything?

[bub838]

Someone who thinks they can ignore a 1099 because of a made up threshold (reporting income isn’t a choice, 1099 or not) + openly discussing upping their reporting (fraudulently?) to get a large return does not exactly inspire.