Big Brother is watching (US Tax Payers)

Cafe_to_go

Cafe_to_go

Coast to Coast
If you are like most Americans and enjoying making a dime on items you sell on ebay, out of your home or even craigslist and accept credit card payment via paypal (paypal is not limited only to credit card payments, paypal is the merchant) or other merchant service (visa, mastercard, amex etc....), as of 2012 the Internal Revenue Service will know how much you are collecting via a new form to crack down on online sales that are not report on people's tax return. The form is a 1099-K that will be issued from paypal or what ever merchant company you deal with, the form will show much you collected on a monthly basis, so the IRS is expecting you to report at a minimum the credit card sales. So its not a bad idea to keep track of the cost of items you sell and specially have reciepts for them, because if you don't, then an agent can simply say your cost was zero and it was all profit. For more details, please contact your accountant or your tax preparer.
 
does this effect purchases made from illicitly gained income, or just sales? hypothetical illicitly gained income.
 
WeberKid said:
does this effect purchases made from illicitly gained income, or just sales? hypothetical illicitly gained income.
Click to expand...

Good question, sorry I can't answer it, but if you call this number 800-829-1040, I am sure a friendly person would give you some good o free advice :)
 
I know they can bust you for tax evasion for dealing pot, so it counts illicit income as well.
 
Ebay has been heading that way for a while now. The wild west days of the internet are bygone
 
The easy way around this for the time being, should you choose to do it, is ask for payment via money order. It's not going to last forever, but for the time being it will.
 
For many of us this is like getting taxed on a garage sale. Most of the time when you're selling a used item it's for less then you initially paid for it. If they're going to tax us on a person to person sale then that means we should be able to write of depreciation of the items. Adding another grey area, you'd be able to write off depreciation on all of your possessions yearly in the event that you may sell them some day. If you are indeed a retail shop doing business on ebay then yes you should obey the tax laws affiliated with retail mail order sales.
 
yet another reason we need to do away with the irs and institute the fair tax. this frustrates me. i go to work... get taxed on my income... buy something and pay taxes on that item... use it or decided i don't want it... turn around to sell it... get taxed again. how many ways can they tax the same dollar?
 
dean owens said:
yet another reason we need to do away with the irs and institute the fair tax. this frustrates me. i go to work... get taxed on my income... buy something and pay taxes on that item... use it or decided i don't want it... turn around to sell it... get taxed again. how many ways can they tax the same dollar?
Click to expand...

Until they have the entire dollar!
 
You must log in or register to reply here.

DTT Light or Dark

  • DTT Light
    • www.jadusmotorcycleparts.com
    www.lostapostle.ca/
    www.sparckmoto.com

    Spread the Love

    Back
    Top Bottom