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If I sell my old couch at a loss for $600, and get paid with Venmo, the default behavior now is to have a form sent to the IRS. The burden is on me to prove it
by bthrn 5y ago
If I sell my old couch at a loss for $600, and get paid with Venmo, the default behavior now is to have a form sent to the IRS. The burden is on me to prove it is a loss and have the documentation to back it up, or risk having $600 of taxable income in the eyes of the IRS. At this small threshold, it sounds like a burden to me.
- gowld 5y agoSeparately, even though selling used goods at a loss is deductible on income tax, you can still get chased own for sales tax, thanks to USA's absurd non-VAT sales tax system.
- PopAlongKid 5y ago>even though selling used goods at a loss is deductible on income tax Not if the goods were for personal rather than business or investment use. Losses on sale of personal-use assets are non-deductible for income tax purposes.
- gamblor956 5y agoEvery part of your statement is wrong. 1) Selling used goods at a loss is not deductible on your tax return unless you are in the business of selling used goods. 2) Unless you are selling a lot of tangible goods (i.e., you have a business selling things), you aren't even eligible to register for sales tax in most U.S. states. 3) If tax applies to the sale of a used good in this situation, it would be a use tax that is the responsibility of the buyer to report and pay.
- deleted 5y ago[deleted]
- deleted 5y ago[deleted]
- UncleMeat 5y agoThat's not true. The system only triggers for commercial transactions.
- abfan1127 5y agothe loophole is that we just send via "friends and family".
- LorenPechtel 5y agoAnd that's not a commercial transaction??
- ac29 5y agoNo, its a personal one.