Will the new $600 IRS reporting threshold change your habits?

[Fizroy]

Originally Posted by npolackw

I hope it's not in the new bill, but let me throw out a hypothetical. Let's say I sell a Mike Trout card for $1,000 that I bought for $10 8 years ago. That would obviously trigger the 1099. Could I not, to offset this gain, just "sell" an old stereo I bought for $1,000 20 years ago that now isn't worth anything to a friend for $1, who then just throws it in the trash? I mean, I've bought tons of stuff over the years that's now worth nothing...vacuum cleaners, lawn furniture, etc. Can I just "sell" all this stuff for a loss to offset my gains?

talk to a tax person. Most of us here use free turbo tax and should not be giving tax advice. Good luck tho!

[Biohazarddfl]

Originally Posted by npolackw

I hope it's not in the new bill, but let me throw out a hypothetical. Let's say I sell a Mike Trout card for $1,000 that I bought for $10 8 years ago. That would obviously trigger the 1099. Could I not, to offset this gain, just "sell" an old stereo I bought for $1,000 20 years ago that now isn't worth anything to a friend for $1, who then just throws it in the trash? I mean, I've bought tons of stuff over the years that's now worth nothing...vacuum cleaners, lawn furniture, etc. Can I just "sell" all this stuff for a loss to offset my gains?

This sounds right, but agree, consult a professional. F'd up if this sticks.

Sent from my SM-G973U using Tapatalk

[discodanman45]

Originally Posted by Fizroy

actually. the link provided was from the 24th of Feb. The Senate just voted yesterday which shows Sec. 9674.

Looks like canned beans again fellas! insert sad face here.

Sorry, looks like it was added afterwards and not taken away. The bubble has officially popped for cards. Buying a black trench coat and will be selling cards on the street corner.

[discodanman45]

Originally Posted by npolackw

I hope it's not in the new bill, but let me throw out a hypothetical. Let's say I sell a Mike Trout card for $1,000 that I bought for $10 8 years ago. That would obviously trigger the 1099. Could I not, to offset this gain, just "sell" an old stereo I bought for $1,000 20 years ago that now isn't worth anything to a friend for $1, who then just throws it in the trash? I mean, I've bought tons of stuff over the years that's now worth nothing...vacuum cleaners, lawn furniture, etc. Can I just "sell" all this stuff for a loss to offset my gains?

Nope, you can't do it. You can't apply a loss from a household good to apply to a collectible. They are in different categories in the Schedule D.

[boston12]

This ol’ chestnut again. So many honest people here.

[panamamyers]

Originally Posted by BGeezy

Here's the specific text from the actual bill itself:



You can read the full text here: https://www.congress.gov/117/bills/h...6E5F49D39AB701

SEC. 9674 is the pertinent modification being made. It applies to next year's return and this years income, not prior years, for anyone that may be worried about that. It does mention it applies to transactions after the bill is enacted, but I would capture all of 2021 sales in your documentation to be safe.

Not exactly.
It states returns starting in 2022 which will be filed in 2023.

[panamamyers]

Can you imagine how many times I've been taxes already on the money? I was taxes when I worked for it. I was taxes when I bought the blaster at walmart. If i ever sell this specific card to get money and buy another card on ebay, i will be taxed on that eBay purchase. I will be taxed again when I sell it. I'll be taxed again if i ever gift that money to an offspring.
It's amazing any of us have any money at all.

[ucLAkers]

Originally Posted by shrevecity

Lol I screwed that badly.. lol. Driving and typing

Driving and typing is a skill only 18yo girls are allowed to do....

[alphaomegas]

Originally Posted by panamamyers

Can you imagine how many times I've been taxes already on the money? I was taxes when I worked for it. I was taxes when I bought the blaster at walmart. If i ever sell this specific card to get money and buy another card on ebay, i will be taxed on that eBay purchase. I will be taxed again when I sell it. I'll be taxed again if i ever gift that money to an offspring.
It's amazing any of us have any money at all.

It’s bullshiit we are the people going to stand up on this. Government blows and waste money on worthless junk or steals it and gives to state workers or over price contractors. I’m sick paying taxes 3-4 time on one item.

Btw taxes is what keeps you poor and keeps inflation down as no one has money after you pay tax

[kevbojones]

I think it was a troll.

[dodgerfanjohn]

Originally Posted by gmoney328

Or people could just pay taxes like they're supposed to.

1.) Can’t itemize if you take the standard deduction.

2.) if you rent and have a normal job, you most likely take the standard deduction.

3.) if you live in a low property tax/income tax state such as Nevada you most likely take the standard deduction and itemize.

4.) if you live in a high income/property tax state you probably have already reached the itemize limit

5.) right now no one enforces $2-19k a year in income reporting via eBay except a handful of states. Or are you one of those dingbats who gets upset at people driving 75 mph on the freeway?

6.) you can’t buy a case for $1200, sell a card for $1500, and just report a $300 profit, especially if you take the standard deduction. That’s not how it works and is one of the dumber ideas mentioned in this thread.

7.) this is one of those threads where posters should disclose if they are just a. Collector, derive substantial income from selling cards, or are only in the business of selling cards. This law is mostly targeting collectors only as the other two categories are already reporting all this.

8.) a form reporting income from eBay to the irs absolutely will trigger the irs to pursue you. I already had it happen years ago on $3900 I won and forgot about in a small $150 buy in poker tournament.

9.) this is a miserable idea.

[SupermanBrandon]

BO Accountants are out in full force today.

[asujbl]

Originally Posted by SupermanBrandon

BO Accountants are out in full force today.

It’s been a fun read so far

[gmoney328]

Originally Posted by dodgerfanjohn

1.) Can’t itemize if you take the standard deduction.

2.) if you rent and have a normal job, you most likely take the standard deduction.

3.) if you live in a low property tax/income tax state such as Nevada you most likely take the standard deduction and itemize.

4.) if you live in a high income/property tax state you probably have already reached the itemize limit

5.) right now no one enforces $2-19k a year in income reporting via eBay except a handful of states. Or are you one of those dingbats who gets upset at people driving 75 mph on the freeway?

6.) you can’t buy a case for $1200, sell a card for $1500, and just report a $300 profit, especially if you take the standard deduction. That’s not how it works and is one of the dumber ideas mentioned in this thread.

7.) this is one of those threads where posters should disclose if they are just a. Collector, derive substantial income from selling cards, or are only in the business of selling cards. This law is mostly targeting collectors only as the other two categories are already reporting all this.

8.) this is a miserable idea.

The point I was trying to make is that if you are knowingly trying to game the system, it could come back to bite you someday.

If you're just simply paying a percentage of PROFITS in tax, what's the big deal? I don't get why people cringe at the prospect of paying 20%, or whatever it is, on basically found money.

And I do agree, the governments actions make it hard for some people to swallow "doing the right thing."

[Stech36]

I’ve been getting it for the last few years anyway, so doesn’t change much for me.

But a few pieces of advice.

Friends and family sales should also be reported as income. odds are you will not get audited. Doesn’t mean you should risk excluding them.

Anything posted online can be traced back to you.

And of course, talk to an accountant.

You can deduct expenses. eBay feees, PayPal fees, Inventory, and shipping.

[Wiseguy917]

Originally Posted by Stech36

I’ve been getting it for the last few years anyway, so doesn’t change much for me.

But a few pieces of advice.

Friends and family sales should also be reported as income. odds are you will not get audited. Doesn’t mean you should risk excluding them.

Anything posted online can be traced back to you.

And of course, talk to an accountant.

You can deduct expenses. eBay feees, PayPal fees, Inventory, and shipping.

Does inventory qualify as an expense? I’m under the impression it does not. If I sell 10k worth of cards to purchase a 12k card, I still owe taxes on the 10k I sold and can not write off the 12k card as inventory. Obviously I could be wrong here but this is my impression as of right now. Am I incorrect?

[The Accountant]

Originally Posted by SupermanBrandon

BO Accountants are out in full force today.

Reporting for duty

[thenightman]

Does anyone have any idea if this goes into effect now, like I'll get a 1099 for the 2022 tax filing if I sell over $600 or will it go into effect 1/1/2022 and it'll be for the 2023 tax filing?

[The Accountant]

That said, I'm not a tax guy

[Wiseguy917]

Originally Posted by thenightman

Does anyone have any idea if this goes into effect now, like I'll get a 1099 for the 2022 tax filing if I sell over $600 or will it go into effect 1/1/2022 and it'll be for the 2023 tax filing?

It states returns after 12/31/21 so the 2022 returns taxable in 2023

[Stech36]

Originally Posted by Wiseguy917

Does inventory qualify as an expense? I’m under the impression it does not. If I sell 10k worth of cards to purchase a 12k card, I still owe taxes on the 10k I sold and can not write off the 12k card as inventory. Obviously I could be wrong here but this is my impression as of right now. Am I incorrect?

Deduct what you paid for the $10k in cards you sold.

But ask an accountant, don’t trust me! Lol

[Fizroy]

Originally Posted by thenightman

Does anyone have any idea if this goes into effect now, like I'll get a 1099 for the 2022 tax filing if I sell over $600 or will it go into effect 1/1/2022 and it'll be for the 2023 tax filing?

Reports have stated that it won't go effect until 2022 and reporting in 2023.

[thenightman]

Originally Posted by Wiseguy917

It states returns after 12/31/21 so the 2022 returns taxable in 2023

That's good to know. Thanks

[Wiseguy917]

Originally Posted by Stech36

Deduct what you paid for the $10k in cards you sold.

Well yea, but that’s not inventory. That’s sale minus expense of the product which equals profit. I’m asking if you can actually expense inventory you purchase by using profit.

[oldgoldy97]

Originally Posted by dodgerfanjohn

1.) Can’t itemize if you take the standard deduction.

2.) if you rent and have a normal job, you most likely take the standard deduction.

3.) if you live in a low property tax/income tax state such as Nevada you most likely take the standard deduction and itemize.

4.) if you live in a high income/property tax state you probably have already reached the itemize limit

5.) right now no one enforces $2-19k a year in income reporting via eBay except a handful of states. Or are you one of those dingbats who gets upset at people driving 75 mph on the freeway?

6.) you can’t buy a case for $1200, sell a card for $1500, and just report a $300 profit, especially if you take the standard deduction. That’s not how it works and is one of the dumber ideas mentioned in this thread.

7.) this is one of those threads where posters should disclose if they are just a. Collector, derive substantial income from selling cards, or are only in the business of selling cards. This law is mostly targeting collectors only as the other two categories are already reporting all this.

8.) a form reporting income from eBay to the irs absolutely will trigger the irs to pursue you. I already had it happen years ago on $3900 I won and forgot about in a small $150 buy in poker tournament.

9.) this is a miserable idea.

Ahh, the truth comes out. You’re against it because you already tried to shaft the system. It wasn’t your fault, it’s everyone else’s. Makes perfect sense now.