IRS announces temporary rescue from American Rescue Plan

[ll74]

No. You do not have to report non-taxable transactions on your tax return, regardless of whether they happen on a payment platform, a garage sale, or any other means of monetary exchange. If friend reimburses you on Zell or Venmo for concert tickets you got for him, it’s not taxable income. If you sell a dining room set on eBay, it’s not taxable income.

I wasn't talking about those who are not required to report it. It's not rocket science. If you feel confused, review the guidance or hire someone.

https://www.irs.gov/businesses/understanding-your-form-1099-k

 

[Lazaran]

BabyBoobs obviously thinks there isn’t a lot of room for “beating the system” under the "current" guidelines.



Greater information reporting results in greater tax compliance.

Full stop.



And the accompanying digital red flagging of those who receive those 1099-Ks can certainly aid law enforcement in identifying human traffickers, organized retail theft operations, drug dealers, etc.

Hope that ^ helps.



BabyBoobs

 

[BabyBoomer50s]

I wasn't talking about those who are not required to report it. It's not rocket science. If you feel confused, review the guidance or hire someone.

https://www.irs.gov/businesses/understanding-your-form-1099-k

The IRS has delayed implementation (again) in large part because of the concerns about confusion among payment platform providers and 1099-K recipients. Those concerns are shared by the American Institute of CPAs which advocates raising the threshold and your home state Democratic Senator Sherwood Brown who has co-sponsored bipartisan legislation to raise the threshold from $600 to $10K.

 

[Chobham]

Soooooooooooo, I buy a car for $23K, drive it for X number of miles/years and then sell it on Ebay motors for $11K. Do I get to write off my $12K loss?

 

[icanhelp1]

Soooooooooooo, I buy a car for $23K, drive it for X number of miles/years and then sell it on Ebay motors for $11K. Do I get to write off my $12K loss?

Welp, there’s always taxing capital gains before they’re realized.

 

[Chobham]

Welp, there’s always taxing capital gains before they’re realized.

Isn't CA trying to make that happen?

 

[BabyBoomer50s]

Isn't CA trying to make that happen?

Probably some efforts bubbling but nothing imminent. But one thing CA already does is tax capital gains as ordinary income instead of at a lower capital gains rate that is done at the federal level and in most if not all other states. Its one of the reasons many seniors in CA who have owned their homes for decades keep their houses off the market rather than selling and downsizing.