Did You Sell an Old Desk Online? You May Receive a Tax Form.

[Lanyap]

I had not heard of this aspect of the American Rescue Plan from 2021. It would seem to have major ramifications for your average Joe individual sellers. How would this impact AT For Sale/Trade? Lot's of questions and confusion. Did we really need this at this time with the economy like it is. Article comments are interesting.

https://news.yahoo.com/did-sell-old-desk-online-183708171.html

It’s not unusual for anyone with an old desk or bicycle that’s in decent condition but no longer needed to sell it online and make some extra cash.

But because of a change in tax law, these small-time online sellers might soon receive a tax form that few have seen before, a 1099-K. The change took effect for 2022 and might be confusing, experts say, possibly leading some people to pay taxes that they don’t owe.

Millions of people could receive the forms early next year, said Christopher Walters, CEO of Blucora, the parent company of TaxAct do-it-yourself tax software. “A lot of people are likely to be surprised,” he said.

What’s going on? In 2021, as part of the American Rescue Plan, Congress changed the rules for how online marketplaces and payment services must report transactions. The aim was to better track gig economy income that wasn’t reported to the IRS.

Before this year, online companies that process payments — including marketplaces like eBay and Poshmark and payment services like PayPal and Venmo — were required to send 1099-Ks only to sellers who exceeded 200 transactions and $20,000 in income annually. That threshold captured sellers running businesses, while excluding most people who were merely cleaning out their closets.

...

 

[GoPackGo]

If you sold it for less than what you paid for it you should not be responsible for any taxes.

 

[Meghan54]

And deep into the article, it mentions bi-partisan moves in Congress to correct/address this.

 

[Artorias]

Sell local/regional and cash only.

 

[pauldun170]

Old thread about it

Selling stuff under the new $600 max law

I've heard that a law was passed last year that makes it so that Ebay, craigslist and others now report your sales if you sell over $600 in a calender year. Does anyone that does online sales have any insight into it? I've been wanting to offload an old 1080ti I've had but am on SSI and am...

forums.anandtech.com

 

[fleshconsumed]

If you sold it for less than what you paid for it you should not be responsible for any taxes.

True, but it's still a hassle if IRS asks for documentation. Especially for things that were purchased at retail or used. I'm still purchasing some things at Microcenter/BestBuy retail locations and those don't get saved to email inbox or anything. I've also purchased a couple of 3950x used for which I have no documentation whatsoever. Pain in the ass is what this is.

 

[Captante]

Say what you will about Newegg.... they still have every single invoice (& easily searchable) from everything I ever bought from them over nearly 20 years.

AND I still have most of the original emails in Gmail too!

 

[Lanyap]

Old thread about it

Selling stuff under the new $600 max law

I've heard that a law was passed last year that makes it so that Ebay, craigslist and others now report your sales if you sell over $600 in a calender year. Does anyone that does online sales have any insight into it? I've been wanting to offload an old 1080ti I've had but am on SSI and am...

forums.anandtech.com

Thanks. I searched but did not see that thread.