1099 tax rules

[BroccoliFarmer]

As we are fast approach the end of the year, it means it's 1099 time. For all hobbyist and vendors who buy and sell corals, be aware that paypal, venmo, and other online payment solutions will be sending out 1099-Ks's if you receive more than $600 in payments. I was reading an article the other day that this is one of the areas the IRS expects that their new 87,000 agents will be focusing on.

Will PayPal report my sales to the IRS? | PayPal US

Learn how PayPal is required to report sales above a threshold and also know the 1099-K requirements.

www.paypal.com

https://help.venmo.com/hc/en-us/articles/4407389460499-2022-Tax-FAQ

 

[Steven Garland]

I just saw this too,and watched a video on it. Its pretty crazy and pathetic. Thats all that stimulas money coming back to bite everyone in the rears.

 

[jhuntstl]

This should be a fun thread!

 

[BroccoliFarmer]

Please dont shoot the messenger. I am just a tax guy giving people updates out of the goodness of my heart. Just trying to be helpful.

 

[zheka757]

you can also write 1099 expenses, and there is a lot of expenses to grow that $50 frag you sold. if you smart you can write off all of that.

 

[BroccoliFarmer]

you can also write 1099 expenses, and there is a lot of expenses to grow that $50 frag you sold. if you smart you can write off all of that.

I will be writing up a full posting about the tax rammifcaitons of selling corals. I do this every year and provide people some information. Ultimately, what you can write off is dependant upon if this is a hobby or a business. If you are a hobby, you can write off direct expenses (postage, shipping container and how much you paid for the coral). If you are a trade or business (overly simplistically stated as spending more than 750 hours a year on the business), you can write off direct costs as well as indirect (salt, electricity, mortgage, equiptment). Again..i will write up a better article on this later in the year.

I wonder if I will get an article contributor badge?

 

[FIN&BONEZ]

Instead of making our streets safer were gonna go after everyday AMERICANS who trade and sell coral? I thought nobody making under $400 grand would see no new taxes?

 

[Lbrdsoxfan]

This should be a fun thread!

It will die quickly.

Edit: it will be moderated to death and then it will die. Folks don't know how to keep politics out of it.

 

[BroccoliFarmer]

It will die quickly.

Heck no. Its my time to shine!!

 

[jhuntstl]

 

[Lbrdsoxfan]

Heck no. Its my time to shine!!

Folks don't like the tax man, me included, lol. I pay my cpa dearly, yearly for the info!

 

[flashsmith]

This is nothing new. It's been around for 3-4 years. I remember when everybody who sold on ebay etc... were having fits about it long before 2020. It's just never really been enforced. I don't think they will waste much time on the lower end of the spectrum. Although I will say as a business owner who does the right thing and pays taxes it's about time there was a crackdown. There are full blown businesses being ran through e commerce who pretend they are weekend warriors cheating us all. I run across it in my own profession. Unlicensed and uninsured businesses everywhere. Those are the ones who this will primarily be targeting.

 

[billyocean]

I'm sure I can come up with a way I lost money. They don't know what the coral looked like when it was sold.

 

[Lost in the Sauce]

The good man is giving professional advice to us heathens.

Please keep this free of your politics. That will get it closed Again.

 

[Lbrdsoxfan]

The good man is giving professional advice to us heathens.

Please keep this free of your politics. That will get it closed Again.

Good luck with that, lol. As I said above....

 

[FIN&BONEZ]

Not politics just common sense.

 

[ColoredRock]

--->

Venmo Revenue & Users Statistics​

 

[billyocean]

87,000 people is a lot. Lol.

 

[Lbrdsoxfan]

Not politics just common sense.

It always turns into politics...

P.S. Cash is still king for a reason!

 

[flashsmith]

To add to it. At least in my field all kinds of businesses started using cash app Venmo etc.. to take payments as a way to avoid transaction fees and taxes by thinking they could take payments under a personal name instead of their DBA. This has been a long time coming.