Tax consequences of paypal Options

[sixaddict]

Well we were all aware of this coming but just got my love letter 1099 from PP.
Trying to figure how to handle.
Anyone have legitimate advice?
Obviously the 1099 is gross income……but that would be if cost basis was zero and that is not the case. If you don’t itemize how do you get a fair assessment.
Wont get into political weeds but this is BS.

[technicalninja]

From what I understand the point of reporting was over 2000 individual sales or $20,000.

The "reporting" threshold was moved down to $600 last year. I don't believe there was a listed number of sales.

This WAS ALWAYS the threshold for any business paying a contractor.

If a body shop paid me for $450 worth of work, they were allowed to include it in their costs without a 1099.

If they paid me ANYTHING over 600 (could be two jobs for more than 300) they would have to issue a 1099 to include it in their costs.

As a business I merely file it, and it actually does NOTHING to my taxes as I already pay them anyways on my total profit.

Works fine, no problem at all, as long as you have a real business.

Who this change screws are normal folks.

The Government will accept original receipts, and you can defray the amount of money you gained, but you cannot take a depreciation if you lost money.

You buy a couch for $2000 and sell it five years later for 700.
If you kept the receipt, you can avoid paying taxes but you cannot take a $1300 deduction for depreciation as you could if you're a business. This depreciation starts happening the first year on expensive shop equipment. A $2000 couch would be considered expensive.

If you are like 99% of the population and didn't keep the receipt, you get to pay FULL taxes again. This includes both your Federal taxes and the FULL amount of SS (12.4%)

So, A guy at the 30% tax rate would actually be paying 42.4% of the 700 couch "profit" or nearly $300...

You have just been taxed TWICE on $700 of the original money for the couch.
The second go round ALSO hit you for 6.2% MORE than the first time as non-business owners (employees) only pay 1/2 of SS.

Feels good don't it...

This is why I ALWAYS offer F&F PayPal to active menbers when buying used parts.

Losing nearly HALF is what I consider FRAUD by our government.


My mom is on her death bed tonight and she was a garage sale/thrift shop hoarder.
I have 50-100K worth of high-end household stuff (she DID hoard NICE stuff thank god).
When you inherit stuff (below 15m or so) you don't pay taxes anyway...

I'm planning on speaking with a Tax Attorney before I go hog wild selling stuff directly.

I hope the laws change back to the way they were before last year. They might.

I'm still "blown" by the amount of crap my mom has collected, and I don't want to space the selling out over multiple years.

If I simply consigned it all to an Estate sales company I'd have ZERO issue, but they take 50% too.