comixry Posted March 11, 2021 Share Posted March 11, 2021 Paying taxes is one thing, being fairly taxed is another. I'd like to know the think tanks' thought process behind lowering the threshold to $600 from $20k (seems drastic). Could it be that the year-long pandemic brought record unemployment and with that more folks flocked to sites like eBay, craigslist, etsy, etc to make a few extra dollars from stuff in there attic or garage? Obviously in-person garage sales aren't popular (maybe in a few states). Now, maybe the government realized this and did the math. But taxing those you're trying to help as a way to possibly pay for some of this bill doesn't make sense. But...in the end, someone or somehow this bill has to be repaid. Link to comment Share on other sites More sharing options...
ygogolak Posted March 11, 2021 Share Posted March 11, 2021 On 3/10/2021 at 10:18 AM, the authority said: This will certainly change the hobby for better or for worse. I spent $2500, $1500, and $1100 cash on 3 small collections this month. How do I account for that expense ? The last guy I bought from didn't even have access to the the internet at home. Found him through a friend. Said he didn't have a bank account. I prefer to pay with paypal but none of these guys had it. All were older. So what's the best way to cover yourself in this instance ? How did they do it before computers and credit? Link to comment Share on other sites More sharing options...
the blob Posted March 11, 2021 Share Posted March 11, 2021 25 minutes ago, comixry said: Paying taxes is one thing, being fairly taxed is another. I'd like to know the think tanks' thought process behind lowering the threshold to $600 from $20k (seems drastic). Could it be that the year-long pandemic brought record unemployment and with that more folks flocked to sites like eBay, craigslist, etsy, etc to make a few extra dollars from stuff in there attic or garage? Obviously in-person garage sales aren't popular (maybe in a few states). Now, maybe the government realized this and did the math. But taxing those you're trying to help as a way to possibly pay for some of this bill doesn't make sense. But...in the end, someone or somehow this bill has to be repaid. It is not just about taxes. A lot of folks found their incomes lowered to the point of now being eligible for various entitlements. This could eliminate that eligibility. A friend who was canned and turned into a $1,000 a month "consultant" from a 6 figure job is now eligible for Medicaid for him and his family. He's 50 something, in poor health, and lives in a remote area where he had been allowed to work remotely. (He was actually fired two weeks after he left the hospital after a one week hospitalization where he worked 8 hours a day from his hospital bed and his company lauded him for the extra effort, and replaced with two 25 year olds). He has a very specialized skillset and is not likely to get a job unless he can have the same deal. McDonald's wouldn't hire him. If his family was supplementing and selling $1000 a month in on ebay and the government considers all of those sales income, he may no longer be eligible. Link to comment Share on other sites More sharing options...
jas1vans Posted March 11, 2021 Share Posted March 11, 2021 28 minutes ago, comixry said: Paying taxes is one thing, being fairly taxed is another. I'd like to know the think tanks' thought process behind lowering the threshold to $600 from $20k (seems drastic). Could it be that the year-long pandemic brought record unemployment and with that more folks flocked to sites like eBay, craigslist, etsy, etc to make a few extra dollars from stuff in there attic or garage? Obviously in-person garage sales aren't popular (maybe in a few states). Now, maybe the government realized this and did the math. But taxing those you're trying to help as a way to possibly pay for some of this bill doesn't make sense. But...in the end, someone or somehow this bill has to be repaid. I'm interested in how this is going to play out as well. There's already been one thread relating to this topic shut down. In this thread, comments have been deleted and warnings issued. Let's not invite speculation relating to why's or discuss what's fair/unfair as that will likely lead to politically related posts which will shut this thread down. D84 1 Link to comment Share on other sites More sharing options...
grebal Posted March 11, 2021 Share Posted March 11, 2021 34 minutes ago, comixry said: Paying taxes is one thing, being fairly taxed is another. I'd like to know the think tanks' thought process behind lowering the threshold to $600 from $20k (seems drastic). Could it be that the year-long pandemic brought record unemployment and with that more folks flocked to sites like eBay, craigslist, etsy, etc to make a few extra dollars from stuff in there attic or garage? Obviously in-person garage sales aren't popular (maybe in a few states). Now, maybe the government realized this and did the math. But taxing those you're trying to help as a way to possibly pay for some of this bill doesn't make sense. But...in the end, someone or somehow this bill has to be repaid. We all gotta pay taxes whenever appropriate, a lot of countries are counting on us. Btw, very intriguing usage of the term "think tank." Just speculating, but I think the new rule was responsive to the popular development of our 'gig' economy, and that traders in collectibles and such may just be 'collateral damage.' lizards2 1 Link to comment Share on other sites More sharing options...
shadroch Posted March 11, 2021 Share Posted March 11, 2021 33 minutes ago, comixry said: Paying taxes is one thing, being fairly taxed is another. I'd like to know the think tanks' thought process behind lowering the threshold to $600 from $20k (seems drastic). Could it be that the year-long pandemic brought record unemployment and with that more folks flocked to sites like eBay, craigslist, etsy, etc to make a few extra dollars from stuff in there attic or garage? Obviously in-person garage sales aren't popular (maybe in a few states). Now, maybe the government realized this and did the math. But taxing those you're trying to help as a way to possibly pay for some of this bill doesn't make sense. But...in the end, someone or somehow this bill has to be repaid. Our government depends on tax revenue to function. Obviously people who were laid off during the pandemic are not paying taxes to the amount that was anticipated so new sources of revenue must be found. All they are doing is no longer depending on people to honestly report their incomes and creating paper trails to go after the ones who don't. I compare it to the govt. installing red light cameras. As I don't go thru red lights, it doesn't effect me at all. Nor does this. vodou, Tempus Fugit and D84 3 Link to comment Share on other sites More sharing options...
grebal Posted March 11, 2021 Share Posted March 11, 2021 1 minute ago, shadroch said: Our government depends on tax revenue to function. Obviously people who were laid off during the pandemic are not paying taxes to the amount that was anticipated so new sources of revenue must be found. All they are doing is no longer depending on people to honestly report their incomes and creating paper trails to go after the ones who don't. I compare it to the govt. installing red light cameras. As I don't go thru red lights, it doesn't effect me at all. Nor does this. As a person with accountants in the family, I endorse and support this message. Quick question: is H&R Block a publicly traded company? Link to comment Share on other sites More sharing options...
shadroch Posted March 11, 2021 Share Posted March 11, 2021 10 minutes ago, the blob said: It is not just about taxes. A lot of folks found their incomes lowered to the point of now being eligible for various entitlements. This could eliminate that eligibility. A friend who was canned and turned into a $1,000 a month "consultant" from a 6 figure job is now eligible for Medicaid for him and his family. He's 50 something, in poor health, and lives in a remote area where he had been allowed to work remotely. (He was actually fired two weeks after he left the hospital after a one week hospitalization where he worked 8 hours a day from his hospital bed and his company lauded him for the extra effort, and replaced with two 25 year olds). He has a very specialized skillset and is not likely to get a job unless he can have the same deal. McDonald's wouldn't hire him. If his family was supplementing and selling $1000 a month in on ebay and the government considers all of those sales income, he may no longer be eligible. The government doesn't tax your ebay sales as income. You know that. They tax your profit. If the person is making $1,000 a month profit off ebay, how is that any different than him making $1,000 at a part time job? If his monthly profit exceeds medicaid limits, why should he be on medicaid? buttock and ttfitz 2 Link to comment Share on other sites More sharing options...
the blob Posted March 11, 2021 Share Posted March 11, 2021 1 minute ago, shadroch said: The government doesn't tax your ebay sales as income. You know that. They tax your profit. If the person is making $1,000 a month profit off ebay, how is that any different than him making $1,000 at a part time job? If his monthly profit exceeds medicaid limits, why should he be on medicaid? I don't know if there could be an issue with a january 1099 making it look like you are no longer eligible, losing coverage, only to be corrected months later with your taxes showing the $10K was only $1K in profit. I don't know how frequently they test income eligibility for this stuff. Link to comment Share on other sites More sharing options...
shadroch Posted March 11, 2021 Share Posted March 11, 2021 18 minutes ago, the blob said: I don't know if there could be an issue with a january 1099 making it look like you are no longer eligible, losing coverage, only to be corrected months later with your taxes showing the $10K was only $1K in profit. I don't know how frequently they test income eligibility for this stuff. I'm pretty sure they go by your tax returns. ttfitz 1 Link to comment Share on other sites More sharing options...
arzach421 Posted March 11, 2021 Share Posted March 11, 2021 While I didn't read the who thread, the only way to combat taxes is with deductions, business deductions. Formalize your business and go from there. It's how companies get rich, and you can too. WolverineX, vodou and Tempus Fugit 3 Link to comment Share on other sites More sharing options...
shadroch Posted March 11, 2021 Share Posted March 11, 2021 2 hours ago, arzach421 said: While I didn't read the who thread, the only way to combat taxes is with deductions, business deductions. Formalize your business and go from there. It's how companies get rich, and you can too. Way too much paperwork for this crowd. Dr. Love, Tempus Fugit and arzach421 3 Link to comment Share on other sites More sharing options...
ttfitz Posted March 11, 2021 Share Posted March 11, 2021 7 hours ago, comixry said: So, I guess some collector who bought that West Coast Avengers 45 off the rack when he was 10 years old for cover price back in 1989 is gonna have to find that 7-11 store receipt if he sells it this year and has to file taxes on it. Well, I'm guessing that (a) the difference in tax between the sales price or the sales price minus the buck or two (too lazy to look up the cover price) is enough to worry about, and (2) the IRS is going to accept the printed on the cover price as the original cost, particularly, once again, when it's only a buck or two. Link to comment Share on other sites More sharing options...
jcjames Posted March 12, 2021 Share Posted March 12, 2021 1 hour ago, ttfitz said: Well, I'm guessing that (a) the difference in tax between the sales price or the sales price minus the buck or two (too lazy to look up the cover price) is enough to worry about, and (2) the IRS is going to accept the printed on the cover price as the original cost, particularly, once again, when it's only a buck or two. Collectibles capital gains tax? Link to comment Share on other sites More sharing options...
jcjames Posted March 12, 2021 Share Posted March 12, 2021 7 hours ago, shadroch said: The government doesn't tax your ebay sales as income. You know that. They tax your profit. If the person is making $1,000 a month profit off ebay, how is that any different than him making $1,000 at a part time job? If his monthly profit exceeds medicaid limits, why should he be on medicaid? That's the exact same question I asked 4 pages ago. $1000 from buying and selling collectibles is viewed and treated differently by the IRS (collectibles capital gains) than simply earning $1000 as a machinist. Link to comment Share on other sites More sharing options...
nines Posted March 12, 2021 Share Posted March 12, 2021 As long as your purchases are greater than your sales you should be good. That's how big business does it WolverineX 1 Link to comment Share on other sites More sharing options...
WolverineX Posted March 12, 2021 Share Posted March 12, 2021 39 minutes ago, nines said: As long as your purchases are greater than your sales you should be good. That's how big business does it Or use offshore banking accounts nines 1 Link to comment Share on other sites More sharing options...
the authority Posted March 12, 2021 Share Posted March 12, 2021 9 hours ago, ygogolak said: How did they do it before computers and credit? Ledgers awakeintheashes 1 Link to comment Share on other sites More sharing options...
awakeintheashes Posted March 12, 2021 Share Posted March 12, 2021 So, I’ve been tracking everything (comics, supplies, fees, subscriptions) for a long time - mostly for my own accounting and to show my wife that this hobby wasn’t bankrupting me. I’ve been using Google sheets. With these new reporting requirements and as I’ve dedicated more time to buying and selling this year, I plan to take a more “business” approach and writing off expenses, utilities, and mileage (to LCS, buy collections). Any recommendations for software solutions that will easily help track expenses and sales? Syncing across devices is important. jcjames and the authority 2 Link to comment Share on other sites More sharing options...
CHASEnBLUE Posted March 12, 2021 Share Posted March 12, 2021 Quickbooks is a good program and easy to use from my experiences (An LLC and comic sells/buy tracking). I have not used it to sync with a phone app - just online through my office computer. awakeintheashes and ttfitz 1 1 Link to comment Share on other sites More sharing options...
