The Quaker Oats Man On His Horse Rode Throughout The Night Yelling ... The IRS Is Coming... Vol. Paying Taxes On Sneaker Transaction Over $599

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Yeahh..

So I got an email from ebay about filing for 1099k , which was triggered after selling a pair of $600 kicks. Welcome to 2022 boys and girls. From what I've read online, The IRS considers any $ in your hand over $599 potential income.... rent paid to your roommate, money paid to the plug for "flowers" (drug dealers about to be cash only), the six times your friends pay the $100 back they borrowed, the 3 pairs of bricks your flipped on stockx, all subject to tax . Now with Brand new sneaker if you report it, you might as well pay the tax (in addition to the processing fees of the middle man). I expect those venmo type apps to lose popularity and crypto might take off for a while.. what do you guys think?
 
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most people don’t pay taxes on sneaker flips and drug dealers these days use Venmo and cash app not just cash. These issue here is that irs is working account for transaction that were “off the books”
 
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Aren't you only paying taxes on the PROFIT of the transaction? So if you keep the receipts of the $220 with tax you paid for the shoes and then sold them for 300 wouldn't you only pay tax on the $80? And only after you hit the $600+ threshold of profit? (I know eBay or stockx won't know your profit, they will just make you file a 1099 after the $600 but once you file your taxes, won't you be able to say this portion is an expense, this is profit) and how does this account for Venmo or paying your roommate for you half the rent or bills? I don't think that's what this is about.

From what I read only payments that are considered for your small business are taxed under the 1099k. So idk where you got that you have to pay tax because you got paid for half of rent (as long as you don't own the house), split dinner with someone, or they paid you back the $100 they borrowed SIX times over Venmo but that's wrong.
 
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Aren't you only paying taxes on the PROFIT of the transaction? So if you keep the receipts of the $220 with tax you paid for the shoes and then sold them for 300 wouldn't you only pay tax on the $80? And only after you hit the $600+ threshold of profit? (I know eBay or stockx won't know your profit, they will just make you file a 1099 after the $600 but once you file your taxes, won't you be able to say this portion is an expense, this is profit) and how does this account for Venmo or paying your roommate for you half the rent or bills? I don't think that's what this is about.

From what I read only payments that are considered for your small business are taxed under the 1099k. So idk where you got that you have to pay tax because you got paid for half of rent (as long as you don't own the house), split dinner with someone, or the paid you back the $100 they borrowed SIX times over Venmo but that's wrong.

Yea, but what about people that have owned things for years that are taking loses on everything they sell on eBay how are you going to prove that? Was the dumbest attempt at a quick cash grab and privacy overreach on the middle class and poor not to mention a complete waste of time and resources across the board. The IRS can’t issue a stimulus check properly you expect them to properly audit profit or loss on billions of menial transactions from every American? Complete joke.
 
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Yea, but what about people that have owned things for years that are taking loses on everything they sell on eBay how are you going to prove that? Was the dumbest attempt at a quick cash grab and privacy overreach on the middle class and poor not to mention a complete waste of time and resources across the board. The IRS can’t issue a stimulus check properly you expect them to properly audit profit or loss on billions of menial transactions from every American? Complete joke.

Well technically you should keep all your receipts and records for what like 5-7 years? So if you kept all those receipts (which alot of people do for shoes by just putting it in the shoe box) shouldn't be a huge problem. And most things are bought online and come with a receipt through the website by way of email or account on the website. But yes I agree it is bull****. And I think unnecessary to a point. The threshold should be higher. Maybe not the $20,000 it was but definitely higher then $600 it is now. But my whole point was, people thinking that you are now going to be taxed by Venmo because somebody sent you more then $600 for dinners and drinks or bills over a year time frame is wrong. It's almost a scare tactic to worry people when most people won't have a problem with this reporting requirement. And if someone is selling enough items all year long they probably already report the taxes on the sales. If people really think the government is going to start auditing millions of low income people for a couple thousand in Venmo payments every year is probably wrong. They don't have the resources to do that.

But yes like I said I agree, this is definitely a government trying to pry on its citizens money a little more then it should be. If they would actually go after/audit the millionaires who already get over on the tx system they wouldn't need to resort to this kind of requirement, but we know that's not gonna happen.
 
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Well technically you should keep all your receipts and records for what like 5-7 years? So if you kept all those receipts (which alot of people do for shoes by just putting it in the shoe box) shouldn't be a huge problem. And most things are bought online and come with a receipt through the website by way of email or account on the website. But yes I agree it is bull****. And I think unnecessary to a point. The threshold should be higher. Maybe not the $20,000 it was but definitely higher then $600 it is now. But my whole point was, people thinking that you are now going to be taxed by Venmo because somebody sent you more then $600 for dinners and drinks or bills over a year time frame is wrong. It's almost a scare tactic to worry people when most people won't have a problem with this reporting requirement. And if someone is selling enough items all year long they probably already report the taxes on the sales. If people really think the government is going to start auditing millions of low income people for a couple thousand in Venmo payments every year is probably wrong. They don't have the resources to do that.

But yes like I said I agree, this is definitely a government trying to pry on its citizens money a little more then it should be. If they would actually go after/audit the millionaires who already get over on the tx system they wouldn't need to resort to this kind of requirement, but we know that's not gonna happen.
Apparently the 600 dollar threshold is just for online business payments so if you gave me 600 cash to fix my car and I PayPal it to you back you will now be inconvenienced to explain this to PayPal, it’s insanity.

Also, I’m sure a lot of us have shoes or collectibles or whatever for much longer than 5-7 years, I know I do.

Initially they wanted your banking institution to report to the government all transactions going in and out of your bank account over 600 and the banks pushed back as they felt that it was an invasion of privacy and they didn’t have the resources to keep up with that so apparently it was increased to 10,000 late last year -online sales like eBay is still 600
 
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