New Tax Laws

Meuniere

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I'm not surprised at this, though a bit disappointed. I think the main thing that pisses me off is the cynicism involved in the assessment. Do we all have documentation of what we paid for something (new or otherwise) however many years ago? In many/most cases, probably not. Without documentation, I think one owes tax on the full amount of the sale. I've sold odds and ends over the years on eBay, and purchased a good amount of items as well, mostly so I could learn about older gear that I couldn't afford to purchase new, back in the day. Thankfully that's over.

I certainly expect to see quite a few more items in the "classifieds" on this forum.
 

myt1

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Obviously, I'm not a fan of income tax...I friggin' hate it.

It is my understanding that there are a lot of small, and not so small, businesses that do not pay taxes.

They get around paying taxes by demanding cash payments and doing a significant amount of bartering, which isn't reported. Basically, these businesses operate off the grid in an underground economy. Apparently, there is a lot of this going on.

The $600 rule is aimed at businesses that don't pay their fair share of taxes.

Maybe I'm naive, but I can't believe these new tax reporting rules are aimed at fly fishers selling an occasional fly rod on eBay and are instead designed to go after illegal tax evading businesses. I hope I'm not wrong on this.

I also believe banks have to report all deposits and withdrawals from checking accounts over a certain amount as well, in an attempt to catch off-the-books transactions.
 
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GRASSNGLASS

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Turns selling a couple little things into a paperwork nightmare that many don't want to deal with.

I paid about fifty percent of my salary to the Feds and State while working. Never complained about it.

Now I'm old, retired and tired and don't feel like dealing with this nonsense. Feels like they're trying pick what little bit of meat is still remaining on our brittle old bones.
 

Southerncaster

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If you sell it here and take Paypal, Paypal is also required to 1099 you on anything $600 or over that isn't Friends and Family.
Like I said, IF I sell anything -- I usually try to buy what I know I'll keep and I pretty much like the gear I own. I've only ever sold one reel/rod I've owned and that was a 6/0 Penn Senator 114 conventional ocean reel & rod nearly twenty years ago to someone I knew.
Not necessarily saying I'll refuse paypal, but I generally consider payment in the form of a check or a legit USPS money order. Even prefer the USPS money order as the bank recognizes it instantly and doesn't have to wait for it to clear.

I've sold other non-fishing related items --specifically vintage musical instruments usually well over $600, on pertinent instrument forums where I requested a USPS money order as payment method and it worked just fine for both parties, no middle man, no tax issues or questions asked. Depending on the selling price it might take more than one money order.

But that's just me. I'm still mostly old school in regards to selling stuff online and don't want to have to pay paypal any fees or deal with taxes (other than required sales tax on my ebay purchases).

Wouldn't surprise me if the IRS was out there studying methods of monitoring message forum sales to find ways to tax them.
 
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