5 ms·

What was the rationale for adding yet more complexity for us filling taxes...

by boromi 5y ago

loeg 5y ago
This doesn’t affect personal taxes.
- jdavis703 5y ago
  A lot of people freelance, landlord or do other activities that are classified as "businesses." So it, actually does personally affect a lot of folks who aren't even full blown businesses.
  - vorpalhex 5y ago
    Freelance and being a landlord is in fact a business and you do in fact need to pay business taxes as appropriate. Again, this does not change personal taxes.
    - asguy 5y ago
      Please explain what a “business tax” is in the US. Personal taxes are definitely affected if you happen to do business as a sole proprietor. They’re even affected if you happen to have an LLC with passthrough taxation.
      - deleted 5y ago
        [deleted]
      - vorpalhex 5y ago
        If you form an llc, and if you pay passthrough taxes instead then you are perfectly well aware that you are a business and that passthrough taxes are saving you paperwork. If not, your CPA can explain this to you.
  - BHSPitMonkey 5y ago
    This only makes your tax situation _more_ complex if you're intentionally engaging in tax evasion. If that's your use case, then I guess you have a valid complaint!
    - jdavis703 5y ago
      It’s an additional form that has to be filed away, and then typed in once all the other tax forms arrive. I have no problem reporting business income. In fact, if the IRS just sent me a (contestable) bill I wouldn’t even complain about the extra paperwork.
- et-al 5y ago
  It could if you're a hobbyist buying/selling over $600 worth of used goods. Lots of online communities advise buyers and sellers to use PayPal goods & services for its protection. Now, folks are on the hook for self-reporting. Previously, the thresholds were $20,000 and 200 transactions, which were maybe too lenient. Had lawmakers just halved the threshold to $10,000, I don't think most people would care. The $600 is too low, e.g. guitars easily fetch a grand, and Leica M bodies are easily over that. Also, what are Nancy Pelosi's stock gains compared to any folks that might have been not reporting their illicit <$20k income?
  - cdjk 5y ago
    Want to know what’s even more fun? Since 2018 if you have income from a hobby you are not allowed to deduct any expenses from it, but do need to pay taxes on any income. So if you make a bit of money from photography, and buy and sell a bunch of camera gear, you you taxes on all the camera gear you sold even if it’s sold at a loss.
    - MeinBlutIstBlau 5y ago
    - Spivak 5y ago
      Wait this seems totally logical. Imagine if you could deduct the cost of your car because you used it to drive to a photography shoot once. Or deduct the cost of your personal laptop because you used it for photo editing. This is basically the separation that sole proprietorships have to go through. Stuff that is exclusively used for your business is deductible, anything for personal use isn't.
      - cdjk 5y ago
        It’s more like having to pay taxes on the money you get when you sell your car even though you sold it for less than you paid.
      - Talanes 5y ago
vkou 5y ago
If you aren't doing anything untoward (like getting paid wages under the table, using a digital payment system and not reporting it[1]), this doesn't change how you file taxes. It's simply a data-point that the IRS will cross-reference, to see if you are being honest with your filing. [1] If you're doing that, you should, like, stop. I'm not a lawyer and this is not tax advice, but you should probably stop.
- thathndude 5y ago
  The lawyers would tell you to stop, but then go back to their office and do some tax evading. I’m only sort of joking, the IRS has historically scrutinized attorneys more than other professions.
- CincinnatiMan 5y ago
  If you decide to clean out the junk from your closets, you now have to report that income along with documentation showing you sold it at a loss. Not very fun.
chrismcb 5y ago
Money. Yelled wants all of the taxes. And thinks people are getting rich by falling to pay taxes on $600 transactions. https://www.google.com/amp/s/www.foxbusiness.com/politics/yellen-irs-reporting-requirement-tax-fraud-and-cheating.amp https://www.google.com/amp/s/www.foxbusiness.com/politics/ye...
- deleted 5y ago
  [deleted]

What was the rationale for adding yet more complexity for us filling taxes...

by boromi 5y ago

What was the rationale for adding yet more complexity for us filling taxes...

loeg 5y ago

This doesn’t affect personal taxes.

jdavis703 5y ago
A lot of people freelance, landlord or do other activities that are classified as "businesses." So it, actually does personally affect a lot of folks who aren't even full blown businesses.
- vorpalhex 5y ago
  Freelance and being a landlord is in fact a business and you do in fact need to pay business taxes as appropriate. Again, this does not change personal taxes.
  - asguy 5y ago
    Please explain what a “business tax” is in the US. Personal taxes are definitely affected if you happen to do business as a sole proprietor. They’re even affected if you happen to have an LLC with passthrough taxation.
    - deleted 5y ago
      [deleted]
    - vorpalhex 5y ago
      If you form an llc, and if you pay passthrough taxes instead then you are perfectly well aware that you are a business and that passthrough taxes are saving you paperwork. If not, your CPA can explain this to you.
- BHSPitMonkey 5y ago
  This only makes your tax situation _more_ complex if you're intentionally engaging in tax evasion. If that's your use case, then I guess you have a valid complaint!
  - jdavis703 5y ago
    It’s an additional form that has to be filed away, and then typed in once all the other tax forms arrive. I have no problem reporting business income. In fact, if the IRS just sent me a (contestable) bill I wouldn’t even complain about the extra paperwork.
et-al 5y ago
It could if you're a hobbyist buying/selling over $600 worth of used goods. Lots of online communities advise buyers and sellers to use PayPal goods & services for its protection. Now, folks are on the hook for self-reporting. Previously, the thresholds were $20,000 and 200 transactions, which were maybe too lenient. Had lawmakers just halved the threshold to $10,000, I don't think most people would care. The $600 is too low, e.g. guitars easily fetch a grand, and Leica M bodies are easily over that. Also, what are Nancy Pelosi's stock gains compared to any folks that might have been not reporting their illicit <$20k income?
- cdjk 5y ago
  Want to know what’s even more fun? Since 2018 if you have income from a hobby you are not allowed to deduct any expenses from it, but do need to pay taxes on any income. So if you make a bit of money from photography, and buy and sell a bunch of camera gear, you you taxes on all the camera gear you sold even if it’s sold at a loss.
  - MeinBlutIstBlau 5y ago
  - Spivak 5y ago
    Wait this seems totally logical. Imagine if you could deduct the cost of your car because you used it to drive to a photography shoot once. Or deduct the cost of your personal laptop because you used it for photo editing. This is basically the separation that sole proprietorships have to go through. Stuff that is exclusively used for your business is deductible, anything for personal use isn't.
    - cdjk 5y ago
      It’s more like having to pay taxes on the money you get when you sell your car even though you sold it for less than you paid.
    - Talanes 5y ago

vkou 5y ago

If you aren't doing anything untoward (like getting paid wages under the table, using a digital payment system and not reporting it[1]), this doesn't change how you file taxes. It's simply a data-point that the IRS will cross-reference, to see if you are being honest with your filing. [1] If you're doing that, you should, like, stop. I'm not a lawyer and this is not tax advice, but you should probably stop.

thathndude 5y ago
The lawyers would tell you to stop, but then go back to their office and do some tax evading. I’m only sort of joking, the IRS has historically scrutinized attorneys more than other professions.
CincinnatiMan 5y ago
If you decide to clean out the junk from your closets, you now have to report that income along with documentation showing you sold it at a loss. Not very fun.

chrismcb 5y ago

Money. Yelled wants all of the taxes. And thinks people are getting rich by falling to pay taxes on $600 transactions. https://www.google.com/amp/s/www.foxbusiness.com/politics/yellen-irs-reporting-requirement-tax-fraud-and-cheating.amp https://www.google.com/amp/s/www.foxbusiness.com/politics/ye...

deleted 5y ago
[deleted]