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This is a good step. Now they need to trash that idea of having electronic payment companies send out a 1099K for anyone with $600/yr of online payments (PayPa
by prirun 4y ago
This is a good step. Now they need to trash that idea of having electronic payment companies send out a 1099K for anyone with $600/yr of online payments (PayPal, Venmo, etc.). I know they put the idea on hold because of backlash, but they need to dump it entirely. It will only generate $8B in tax revenue over the next 10 years ($800M/yr) but will cause a huge number of people to pay taxes they don't owe when they sell used crap on eBay, CraigsList, etc. The electronic payment companies don't know whether these payments are business-related or personal.
- coolspot 4y ago1099K is not income, just transaction volume. I had 1099K with $1M worth of transactions from CoinBase, which generated only like $10k of profit.
- prirun 4y agoBut I think a lot of ordinary people selling stuff on eBay will get this form and think "I have to report this to the government as income." And in fact, what I read about it is that if it isn't all income, you write a note about it when you file your taxes. How many people are going to know to do that? Unless you have actually run a business or are doing $1M transactions, you probably won't understand that selling some used junk doesn't require paying taxes on the "income".