4 ms·

If they drop the limit to $0 they will get a lot of noise from yard sale type activity and other things that are non-taxable in nature.

edgyquant 5y ago
The limit will be 600$ and >0 transactions a year (at least that’s what comment says.)
- _delirium 5y ago
  That's the current threshold for some other kinds of 1099 forms, e.g. 1099-MISC for freelance income.
  - IG_Semmelweiss 5y ago
    Correct. But 1099 mis income requirements are largely not enforced because it would be expensive and unpopular if they focused on the lemonade stand of Ms Jane. So, there is a ton of noncompliance. The IRS is going upstream on those transactions, by enforcing compliance at the pay processor level. At that point,there is no mistake. You got a 1099k, and you chose to ignore it. The onus is no longer on the customer to send you a 1099. Its on the money processing service.
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soonerroadie 5y ago
Well, for one, selling stuff at a yard sale isn’t non-taxable. But generally you don’t have to pay tax because you’re selling things for less than you bought them for (you have a personal loss that is non deductible). If you sell it for more than you paid, you have gain that is taxable (but often unreported). But in any event, 1099-K reporting is only from a payment processor - if you accept cash where there is no payment processor involved there wouldn’t be any reporting. But if you sell some stuff on eBay, you might get a 1099 from them or PayPal. Then, you will have to show the proceeds from the sales and your basis, or the IRS matching program may indicate that you have unreported income.
- koheripbal 5y ago
  I thought those types of capital gains/loss calculations only applied to stocks, bonds, real estates, etc... Does it actually apply to literally anything I sell?
  - _delirium 5y ago
    I believe not all tangible property automatically counts. However anything that is deemed a "collectible" is subject to capital gains taxes. That includes artwork, stamps, jewelry, and generally anything similar held for the purpose of investment. Details: https://www.thetaxadviser.com/issues/2019/nov/taxation-collectibles.html https://www.thetaxadviser.com/issues/2019/nov/taxation-colle...

edgyquant 5y ago

The limit will be 600$ and >0 transactions a year (at least that’s what comment says.)

_delirium 5y ago
That's the current threshold for some other kinds of 1099 forms, e.g. 1099-MISC for freelance income.
- IG_Semmelweiss 5y ago
  Correct. But 1099 mis income requirements are largely not enforced because it would be expensive and unpopular if they focused on the lemonade stand of Ms Jane. So, there is a ton of noncompliance. The IRS is going upstream on those transactions, by enforcing compliance at the pay processor level. At that point,there is no mistake. You got a 1099k, and you chose to ignore it. The onus is no longer on the customer to send you a 1099. Its on the money processing service.
  - deleted 5y ago
    [deleted]

deleted 5y ago

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soonerroadie 5y ago

Well, for one, selling stuff at a yard sale isn’t non-taxable. But generally you don’t have to pay tax because you’re selling things for less than you bought them for (you have a personal loss that is non deductible). If you sell it for more than you paid, you have gain that is taxable (but often unreported). But in any event, 1099-K reporting is only from a payment processor - if you accept cash where there is no payment processor involved there wouldn’t be any reporting. But if you sell some stuff on eBay, you might get a 1099 from them or PayPal. Then, you will have to show the proceeds from the sales and your basis, or the IRS matching program may indicate that you have unreported income.

koheripbal 5y ago
I thought those types of capital gains/loss calculations only applied to stocks, bonds, real estates, etc... Does it actually apply to literally anything I sell?
- _delirium 5y ago
  I believe not all tangible property automatically counts. However anything that is deemed a "collectible" is subject to capital gains taxes. That includes artwork, stamps, jewelry, and generally anything similar held for the purpose of investment. Details: https://www.thetaxadviser.com/issues/2019/nov/taxation-collectibles.html https://www.thetaxadviser.com/issues/2019/nov/taxation-colle...