Venmo/Paypal reporting changes.

[BroccoliFarmer]

They are reporting the transaction, not that it is assumed to be income. They have been reporting transactions over 10k already , but that does not mean you will get a bill for income taxes.

Yup. Just creating audit trails if they need to investigate.

 

[NeedAReef]

Just to throw this out for fun.

If I buy a coral for ~100, let it grow, then frag said coral and sell the frags for ~50, technically in a sense I could say I sold that coral for a loss. However, if your audited that single receipt for the original purchase isn't going to help you for all the frags you sold....

Nah you forgot to deduct the expenses associated with salt, electric, fragging, your time, chemicals, tests and the list goes on. You have to sell pulsing at 5 bucks a head to make a true on paper profit and that might be an under estimate

 

[BroccoliFarmer]

Nah you forgot to deduct the expenses associated with salt, electric, fragging, your time, chemicals, tests and the list goes on. You have to sell pulsing at 5 bucks a head to make a true on paper profit and that might be an under estimate

See an earlier post. It depends if this is hobby income or trade or business. If you are a hobby, you can only deduct cost of goods sold (the original coral and direct costs). A trade or business gets to deduct the other stuff

Five Things to Remember about Hobby Income and Expenses | Internal Revenue Service

Tax Tip 2017-80, November 21, 2017

www.irs.gov

 

[chemisfun11]

The new tax laws inspired me to form my own LLC. I have been creating and selling 3D printed items for the community (mostly light spill shades) since last February. Things have been going well so I have kept careful records of everything in preparation for 2022. I would have preferred to continue to collect a profit through paypal, venmo etc. but no more. Hopefully being able to take certain deductions will be worth it. I am not an entrepreneur or tax expert. Just trying to figure it all out while enjoying helping out my fellow reef enthusiasts.

 

[Reefing102]

That is called structuring and is a felony under anti money laundering rules. Plus if the goal is to not pay taxes, then tax evasion.
Again, just citing rules not trying to take a moral high ground.

In all seriousness that’s good info. I honestly don’t care. I’ll pay what I need to pay in taxes. I think I have all of $150 in sales this Past year soo take my $2.00 or whatever in income taxes lol

 

[Brian_68]

If transferring money flags the IRS to come after you than all those parents and grandparents that are writing 10k plus checks to their family yearly to distribute their wealth would all be locked up and they do not hear a peep. Those checks all are reported to the IRS and have been for years and the IRS has no idea what the money is for. Don't worry be happy.

 

[Russell Casey]

Yeah , they have to find ways to pay for all the spending

The great dictator want to be Mr. Orange man signed this into the tax cut relief act for the corporations to get their break. This has nothing to do with anything in Washington DC right now. The orange hate monger put this in the bill with the republicans to pay for the tax cut for the corporations at the expense of us. The law used to be not having to report $20,000 or less in sales. But he was great for America just ask everyone that loves him.

 

[305]

Reporting to the IRS, indeed. Which means when applicable, sales tax needs to be paid on goods, and income tax on services.

Taxes that would have been required to be paid historically, but have been largely overlooked.

Same as any online retailer now collecting state taxes because individuals were not paying.

This isn’t a comment on whether I agree with the policy… that’s a different can of worms.

We got a reefer agent on our hands here ^

 

[305]

The great dictator want to be Mr. Orange man signed this into the tax cut relief act for the corporations to get their break. This has nothing to do with anything in Washington DC right now. The orange hate monger put this in the bill with the republicans to pay for the tax cut for the corporations at the expense of us. The law used to be not having to report $20,000 or less in sales. But he was great for America just ask everyone that loves him.

^triggered. Please citr where u got this from.. 20k less in sales doesnt seem to have anything to do with 600$ digital payment…
Clown

 

[305]

I foresee bitcoin coral sales in the future

 

[MaxTremors]

^triggered. Please citr where u got this from.. 20k less in sales doesnt seem to have anything to do with 600$ digital payment…
Clown

I mean, I agree that Trump’s tax cuts only really benefited the rich, added to the deficit, and were objectively bad policy, but that guy is talking nonsense.

 

[ColoredRock]

The great dictator want to be Mr. Orange man signed this into the tax cut relief act for the corporations to get their break. This has nothing to do with anything in Washington DC right now. The orange hate monger put this in the bill with the republicans to pay for the tax cut for the corporations at the expense of us. The law used to be not having to report $20,000 or less in sales. But he was great for America just ask everyone that loves him.

Bad Orange bad...

But pretty sure your are mistaken.. Bill still sucks.. and it just does not apply to venmo..etc..bank accounts as well.

The US$1.9 trillion economic stimulus bill passed by the 117th United States Congress and signed into law by President Joe Biden on March 11, 2021

Technical Explanation of Section 9674 of H.R. 1319, the “American Rescue Plan Act of 2021.” | Joint Committee on Taxation

www.jct.gov

 

[BroccoliFarmer]

I mean, I agree that Trump’s tax cuts only really benefited the rich, added to the deficit, and were objectively bad policy, but that guy is talking nonsense.

although I am not trying to take a position on which president was worse, I do hate this argument. Yes tax cuts will ALWAYS benefit the rich(er). Why? Because they are the ones that pay the lions share of taxes. Jesse James had a famous quote when asked why he robs banks, ‘because that is where the money is at’. I have previously stated that I don’t think the tax code is very fair ( at the rich or the poor end of the taxation spectrum) but please stop with this terrible argument that is only meant to trigger class warfare. People always want SOMEONE ELSE to pay their fair share but ask the same person to pay THEIR fair share, now that’s a different story.

 

[KStatefan]

They are, but as we know, the IRS is not made up of the most competent people. Also, in order to show profit or loss, one must have the original invoice for the item on hand, if audited. Some keep records like that and some do not.

But if you keep all the invoice someone could look at the and know how much you really spend on your hobby. I am not sure I want to know let alone my wife.

 

[MaxTremors]

although I am not trying to take a position on which president was worse, I do hate this argument. Yes tax cuts will ALWAYS benefit the rich(er). Why? Because they are the ones that pay the lions share of taxes. Jesse James had a famous quote when asked why he robs banks, ‘because that is where the money is at’. I have previously stated that I don’t think the tax code is very fair ( at the rich or the poor end of the taxation spectrum) but please stop with this terrible argument that is only meant to trigger class warfare. People always want SOMEONE ELSE to pay their fair share but ask the same person to pay THEIR fair share, now that’s a different story.

You don’t hate that the rich were given a deficit financed tax cut so that they effectively pay a lower tax rate than the working class? Even though the rich use a disproportionately larger share of tax funded resrouces/services/benefits? Is pointing out the inequity of this really ‘class warfare’? Even if the tax cuts benefitted everyone equally, which to be clear, they didn’t, deficit funded tax cuts are still bad policy. It’s the same old trickle down that never trickles down. I have no issue paying my fair share, and I do, it would just be nice if the rich did too.

 

[GlassMunky]

If I’m not mistaken, this got changed and isn’t going to be at $600 like originally stated and instead the new limit for reporting is $10,000 instead of the old $20,000

 

[BroccoliFarmer]

You don’t hate that the rich were given a deficit financed tax cut so that they effectively pay a lower tax rate than the working class? Even though the rich use a disproportionately larger share of tax funded resrouces/services/benefits? Is pointing out the inequity of this really ‘class warfare’? Even if the tax cuts benefitted everyone equally, which to be clear, they didn’t, deficit funded tax cuts are still bad policy. It’s the same old trickle down that never trickles down. I have no issue paying my fair share, and I do, it would just be nice if the rich did too.

I honestly dont think that the rich use disproportionate share of tax funded resources. In fact, I would make the debate that the less well off get a disproportionate share given that ~60% of the government budget goes to social health and welfare programs (dont quote me on exact percent..my research is out of date and this number stuck in my head from a couple of news articles). I will concede that 'the rich' BENEFIT disproportionately without a doubt...but that has nothing to do with taxes...that is a problem across government types and taxation systems. And yes...inequity based on who has more is almost definitionally class warfare.

I am not arguing the inequity exists. I am not arguing that the tax code can be used to address the inequity in certain manners. I am not even arguing that deficit financed ANYTHING is a good thing. I am simply pointing out that whenever someone says that tax cuts primarily benefit the rich is a poor argument..why, because they disproportionately pay more and any tax cut will naturally benefit those who are already impacted the most. I can write in the tax code that I will give a 100% tax cut to someone already paying zero taxes and 1% tax cut to someone already paying 40% in taxes and the argument that 'the rich' were disproportionately benefited from a tax cut would still hold...which is why I hate that argument.

 

[revhtree]

Closed due to political rants and arguments.