@grannyring I also recognize that I am an outlier. I probably bought and sold a combined six figures worth of gear during 2021 BUT, I keep meticulous records out of habit. In the past, if something was less than a few thousand dollars, I haven't kept up with it. Going forward, I will. Paypal is still pretty darn convenient but I see your point.
Paypal Changes for 2022
If I understand this correctly, Paypal, along with all on-line payment sources like Venmo, etc. will now be sending out 1099 forms for all payments totaling $600 you receive in 2022 for goods or services. The only way around this is to use Paypal friends and family for payment which eliminates any buyer protections. Is everyone aware of this?
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Let’s talk about non-audio. You downsize and sell you home. Now it’s time to sell all the extra stuff you have. Some of it is really great furniture, rugs etc…We did this recently.
Your lucky to get 10-15 cents on the dollar, but you end up selling some $2500-$5000 worth of stuff. You use Venmo and a 1099K form is issued. Now you have to go back as much as 10 or more years to determine what you paid for this stuff. If you can’t find the receipts, then I suppose you just pay the tax if you no longer have “precise” records. Again, don’t want the hassle. The $600 hurdle is far to low in my humble option. Make it closer to $2500-$5000. |
@8th-note : very informative! Question: what schedule would you file this under?
Also, I believe for hobby transactions, losses are disregarded, but gains are recognized. They cannot be offset with each other. I may be wrong |
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