PPFF and the IRS

[02 nighttrain]

PPFF and the IRS

I’m no accountant, but if you’re a seller and collected over $600 this year you may want to read this article.
Moderator, if I’ve posted this in error or the wrong forum, please eliminate it.
https://www.washingtonpost.com/business/2022/11/30/paypal-1099-cash-gifts/

 

[Guppy]

If you sell a jacket for more than $600, be sure to subtract your residual equity. Your income isn't $600, it's $600 less the value of the jacket, which is probably close to zero.

 

[sunset]

Hard to figure depreciation. Flat ten percent a year? It's just breaking in!

 

[AbbaDatDeHat]

PPFF and the IRS

I’m no accountant, but if you’re a seller and collected over $600 this year you may want to read this article.
Moderator, if I’ve posted this in error or the wrong forum, please eliminate it.
https://www.washingtonpost.com/business/2022/11/30/paypal-1099-cash-gifts/

I thought it was $600 per month and you get an 1199 form.

 

[02 nighttrain]

this is what the article says, "As of 2022, all third-party payment processors in the United States, including Venmo and Cash App, must report payments of more than $600 a year received for goods and services."
now I'm not putting myself out there as an expert or an alarmist, but the way I see it if you're audited for any reason you might have to produce documentation (like if you sold real estate). if you couldn't come up with receipts for how much you paid for the jacket, or whatever you sold, the IRS could disallow all or part of the basis of your sale and make you pay tax on your profits. i know this sounds ridiculous but read the Washington Post article or ask your accountant. friends, I'm just the messenger and it's great to be a part of this group!

 

[Guppy]

Hard to figure depreciation. Flat ten percent a year? It's just breaking in!

I think an estimated "fair market value" is reasonable. Good quality leather jackets tend to hold their value over time. They lose a lot of their retail value as soon as they're sold as new, but then they don't depreciate all that much after that.