DId you get that paperwork from the IRS about purchasing? over $600.00

NPR News had it as a Topic related to the upcoming April 15th Tax Day.

I’d think it’d be searchable on their web site.

@andym23456 - can you provide a link to the information you've cited above?  I'd be interested to read it in more detail.  Thanks in advance.

Was in the news yesterday. The $600 rule was not passed for 2023 and again in 2024. They are still debating on where the line will be. Looks like only sales over $20,000 will be under scrutiny through 2024. Supposed to go down to $5000 in 2025, the down to $600 in 2026. There will be a transaction count that gets one noticed as well. A handful of sales may not get you noticed for selling equipment.

Apparently the IRS is still wrangling with what types of sales will fit this new rule. The Doily makers on Etsy may have to add internet tax on their crocheted wares.

Venmo is the primary pay service being targeted, but they will figure out how to get a feed from all. Odd thing will be how they hassle the kid or parents that regularly send each other a $700 chunk of their salary to keep each others house and bills paid up. Will probably be a check box in the transfer of funds that allows families to send money without it looking as if someone bought something.

The irs doesn’t have the money to audit multi millionaire tax cheats and people are worried they are going to audit the sale of a piece or gear with at best $50-100 in tax value in play?  All it takes is having a receipt from someone saying you paid more than you sold it for.

Couldn't agree with @bigtwin more; hence "see an advisor..."

As for audits; not very prevalent these days, but I'm not advocating poking the bear or breaking laws.

Or alternatively; to paraphrase from the movie The Frim; "I don't care about triggering audits, I only care about winning them."

Now back to sound and music😊

@socalml528 Revenue agencies generally look with great skepticism at claimed "business expenses".  The test of a legitimate business is the expectation of earning a profit.  Trying to write off expenses that exceed any profit earned is just asking for an audit.  I have to guess that 99.9% of the members on these sites, when actually selling anything, are doing it at a loss.  Keep all your original receipts for insurance and the tax department on the off chance you are ever asking to prove are not earning taxable income.  Mostly this appears to be a tempest in a teapot.   

If you regularly sell stuff (audio and other) I would suggest a business ID and checking account for all transactions.  That way you could write-off all your audio subscriptions, audio conferences, travel, equipment you buy/sell as inventory plus travel, vehicle transport, heath care and other qualified expenses.  See an advisor for how and what's allowable. 

recapping what's already been posted:  The IRS is after income and not imposing a "Sales Tax."  So keep note of what you paid for it (like stock transactions) and profit (income).  If you sold it for $1000 but paid $1200; that's a $200 loss, no income tax.

As for Sales Tax that may apply depending upon State/Local, but I doubt locals can track online sales yet.  In both cases the seller pays Income Tax or Sales Tax if any.

(Not an advisor, just by take) 😉

Seller; that's the person with (potential) income.  If I sell something here and don't have a record of what I paid for it, I'm unlikely to accept PayPal.

So who pays the taxes, buyer or seller?

When determining "profit", is the sales amount in nominal dollars or inflation adjusted dollars? If you buy something for $1000 then sell it after inflation is declared at 10% for $1050, have you made a "profit"? The dollars you were paid are actually worth $945 (adjusted for inflation) compared to the pre inflation $1000.

@gmosley This was delayed by the IRS for this tax year. It was in the news a month or two ago. They will put it into effect this coming year. 

That should be unconstitutional.

There is nothing in the constitution about that. It just gives congress the power to tax and they seem to be very good at doing that. 

The IRS collects tax on profit made from sales. Many states, but not all, collect a sales tax made on internet purchases. That's its folks! :-)

The intent is to collect tax from people who are generating income (PROFIT) through sales.  I've hear of this person.  They were last seen riding into the sunset on their Unicorn.  🤣

Yes it is for any sales and for tax year 2023 moving forward.

I doubt that, but if you have sales of over $600 through PayPal, then PayPal will file a Form 1099 with the IRS which could cause you to have tax liability.