Selling Parts and 1099-K

wrote:

By SWest: Who lowered the reporting threshold to $600 a Year?

I'm pretty sure it was part of the American Rescue Plan of 2021 which included the $1400/2800 Econ Impact Payments, so it would have to be Nancy Pelosi & the Democratic Party, since every single republican voted against the legislation.

In one post you blamed the Republicans for defunding the IRS, and now you call out the Democrats for screwing over the people looking to offload some of their junk by lowering the reporting limit.  All I can say is bully for you!  I hate all politicians equally!

Regarding the reporting limit reduction, I think it started in 2022. 

Guess I'm going to have to create a ledger showing all my costs.  The entire thing is stupid, though.  If I pay $100 for glass beads and they last for two years, am I supposed to amortize that over two years?  I suspect the answer is yes, but how stupid can they be to think that people are going to go through all that.  And who keeps all these stupid records?  Paper towels, tools, carb dip, and how about electricity for the air compressor?  How about repairs to the air compressor when it burned a motor capacitor?  A new tip for the media blaster gun?  On and on it goes.  Honestly, it's not worth it.  

Others have recommended you keep track of expenses and I would advise the same.  In addition I suggest if you are making any money on the sales that you add a labour charge to your expenses.  By my calculation it should exactly equal every penny you earned.

I don't see a provision for costs, but the IRS may have that ready in time for next tax season.  Assuming the IRS comes up with a worksheet for tax year 2022, you would probably deduct the glass beads for the tax year in which they were purchased since the cost is a small amount. If your sales are great enough, even business equipment & some vehicles can be deducted in the year purchased.  So you could buy a new sonic cleaner & deduct that if you sell enough carburetors to offset the cost. deleted most of reply. ha ha.

 

I was a little to hard on Govt; reality, but this 1099K will take effect next tax yr. for the 2022 filing season. This pertains to UBER / LYFT / ETSY / PAYPAL / VENMO / YOUR PERSONAL CHECKING ACCOUNT. Ect.!!!  Just sayin'! A little too intrusive on your 4th constitutional amendment!

I'll gamble next year! I'll forget to file it! I'm a Disabled Senior! On Meds! Supplied by the Government! I'll just call my Lawyer 1st. Then Fox News, Tucker will interview me! Stay tuned! 
 

This $600.00 limit is outrageous but not unexpected coming from the bigger government folks. (That comment alone has probably gotten me on some sort of agitators list. See: www.thesatirist.com/news/NSA_Data_Backup.html ).

I've been self employed most of my life so deflecting taxes with documented expenses has been an every day effort for me. I believe that every body should have some sort of self employment business to do just that.

So you're selling on e-bay, just start keeping track of your expenses. It's not necessary to do job costing for each sale or job. Just build a spread sheet tracking income VS expenses. Those expenses can include a home shop if you can assert the shop supports the sales. I have an old copy of Quick Books 99 that doesn't require regular payments and support from Intuit. I use it to track expenses for this website.

If I'm ever challenged by the IRS I'll say "Pay no attention to KZR, this is not the profit center you're looking for."

I bet you could do the same.
Bill