Venmo, PayPal Must Report Goods and Services Payments of $600 or Above to IRS
m.theepochtimes.com
Venmo/Paypal Must Report $600 or more to IRS
- Thread starter SomeSoldier
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m.theepochtimes.com
Saltwater60
.950 JDJ
That’s why I verbally do cash or check, but even check is coming soon.
pshift
.338 Win Mag
Hmmm, do they mean services like when you pay a contractor? Do they mean goods like anything you purchase at all over $600?
All of the above.
STS556
.223 Rem
So now we are being double taxed. When I sell something on ebay that is now used for half price that I bought new a few years ago and payed sales tax on, I have to pay taxes again when I sell it years later for half price? That is extorsion if you ask me.
IrishMick
.357 mag
We have been double taxed for years. Think of the amount of tax collected on a motor vehicle. Taxed at 100% when new and taxed again every time it changes ownership. It has been a criminal scheme by the state for decades.
Rest assured that you won't. Brandon told us that it won't. "It won't cost you anything."
As I understand it, the change in the law has the IRS expecting that individuals will report sales of more than $600 on their tax returns, so that they can pay taxes on any profits they have made. Payment processors, ebay, gunbroker, etc will be sending them sales data to support that pursuit. Lots of folks have become concerned that this means paying taxes on the casual sale of personal items. It doesn't. You report your sales and your costs for those items on your taxes. As long as you are not selling for more than you paid, there are no additional taxes due. If you sold a used car for 10k, that you bought for 25k, you owe no taxes on that. If you sell a gun for $1500 that you bought for $900, the IRS is expecting that you will pay taxes on your gain. You can offset any gains by having losses in the same period. That old $500 grill you are throwing in the trash? Sell it to a friend for $1. Instant $499 loss. I've not seen any requirements for recordkeeping (proof of purchase price, etc). I don't think the IRS is looking at this very closely, unless it's a lot of money or there are other flags.
libertysnake
.338 Win Mag
Actually, not quite. This is only for payments received for goods and services. If you're not receiving money in your account over that amount, you don't have to do anything. You're just buying things.
Also if you're sending money to friends and family, it should not be tracked / you should put down on your taxes it was for repayment. They have zero business knowing in the first place, but those bastards do not have a right to tax it. Just add notes to your transactions so when you export them from paypal in a spreadsheet your ducks are in a row with these greedy fucks.
If you buy something or purchase a service from someone for $600 or more, paypal or venmo will report that to the IRS.
libertysnake
.338 Win Mag
I don't like the IRS, but if you're reasonable and you track your shit, the generally leave you be. Some people will write off 100% of a lot of things and get themselves flagged. I'm honest in my appraisals and never had a problem. Most of my biz stuff is dual use, so I fairly label a lot of business stuff 50% biz use only if it's mixed use.
Per my accountant who used to be an IRS agent, and @MikeM can attest to this probably, the IRS is looking for big shit. If you make 5k and didn't report it, then they have some questions. Or if you write off 100% big purchases that have no bearing on your profession. If you forget small things, they're generally not going to waste the time fighting unless you underpaid by several thousands of dollars or something of income that you can't account for. There is a threshold for their time being worth it.
libertysnake
.338 Win Mag
They report to the IRS for the seller that they received $600. That's what they see. They just see / look for income, not expenses.
They don't care about you buying something from the seller. That's your expense. They care the seller has income.
Third-party payment apps must report goods and services payments of $600 or above to Internal Revenue Service (IRS) starting from Jan. 1
I believe they do care about your expense. Because if they can tie that expense to the rest of your expenses they can determine if you have any undeclared income.
libertysnake
.338 Win Mag
If anything there is shit I forget to tell them about. They will probably find out they owe me more.
They would have to be able to know all my expenses to total it up to see if my appraisal is accurate (it is.) Unless you grossly claim you have $5000 expenses that don't exist anywhere, I don't see this effecting buyers much tbh.
spat
.700 Nitro Express
I wish it was only double.
Money is taxed every time it changes hands.
Go ahead and figure out how much tax was *really* in that gallon of gas you bought.
Not just the direct tax, but all the taxes the gas station pays (payroll, property, etc...) comes out of it too.
Then the trucking company that delivered it, the refinery, the oil company operating the well, all the subcontractors that drilled the well.
Easily over half the cost of most things are taxes.
More if you count inflation as a tax.
Uninformed and Compliant
.450/400 Nitro Ex
It's part of enforcing the "no vax no income" rule that they want so bad.
96coal449
.308 Win
The bully needs his ass kicked.
After the first punch is thrown, we stop paying.
Fuck them thugs.
After the first punch is thrown, we stop paying.
Fuck them thugs.
Acer-m14
.950 JDJ
so if i want to send 1000 to someone then i just send 500 twice
Acer-m14
.950 JDJ
BTW ..
DoOver
.450/400 Nitro Ex
Stephen Geiger
@Stephen_Geiger
The IRS is warning Americans that this tax season they must report payments on Venmo, PayPal & Zelle of over $600. Meanwhile… The Pentagon just failed its FIFTH audit in a row, as they were unable to account for 61% of their $3.5 trillion in assets. $800 billion annual budget.
11:46 AM · Nov 30, 2022
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C3D
.308 Win
If you sell anything pricey, just take gold and silver as payment. Sometimes the old ways are the best ways.
Carlos Hathcock
.450/400 Nitro Ex
Since eBay dumped PayPal, PayPal seems to sell nothing but Crypto.
C3D
.308 Win
Easy peasy. If you sell gold, you take silver. If you sell silver, you take gold. If you sell gold and silver, you take platinum.
If selling gold, silver and platinum, just get paid in hookers and blow since you are doing pretty well already.
spat
.700 Nitro Express
$600 today, $60 tomorrow. $0.01 the day after.
The camel is halfway inside the tent at this point.
They're about to redefine any level of privacy in your financial life as "money laundering".
The camel is halfway inside the tent at this point.
They're about to redefine any level of privacy in your financial life as "money laundering".
ManualF150
.308 Win
I'm wondering how my taxes will be this year.
For instance, with certain vendors I do business with, I get a substantial discount if I do lots of business with them. So friends treat me as the middle man, and I order parts for them through this business. To be clear, I don't make any money off of it. When they get the parts, they pay me via check or cash exactly what the invoice states. Some parts are well over $600.
I've asked a tax consultant, and they said that I am an "odd" case and they weren't sure yet. They said if I get hit up with being over taxed, I will need to contest it.
We'll see.
For instance, with certain vendors I do business with, I get a substantial discount if I do lots of business with them. So friends treat me as the middle man, and I order parts for them through this business. To be clear, I don't make any money off of it. When they get the parts, they pay me via check or cash exactly what the invoice states. Some parts are well over $600.
I've asked a tax consultant, and they said that I am an "odd" case and they weren't sure yet. They said if I get hit up with being over taxed, I will need to contest it.
We'll see.
TEOTWAWKI inc.
.338 Win Mag
Who is collecting the sales tax? Asking for a friend...
She must be friends with someone.