Paypal/Venmo reporting transactions over $600 to the IRS

Okay so, according to the paypal website they are now reporting you to the IRS if you receive over $600 via goods and services throughout the entire calendar year(2023). Last year(2022) the threshold was $20,000 and now it's $600. I am not a scrapper or a parts flipper. I am merely a guy who paid retail for brand new parts and is now trying to resell them for much less than what I paid(I am not making money). If I do take goods and services as a form of payment does this mean I will have to provide a receipt for these parts come tax time in order to avoid paying income(again this is not income) tax? What is everyone else doing about this?

 

Yes you'd have to show it was a loss.
Most people just risk and do it friends and family to avoid all hassle

 

I know a guy who sold a rear shock. Definitely wasn't me. Shock cost 599. The box it shipped in was 599. The bubble wrap was 500.

 

From what I'm understanding, the total threshold for the entire year is $600. It's not per transaction. You may be receiving a 1099-k

 

I'll tell my friend nice try lol

 

Okay I honestly dont know now. The IRS site states different than what Paypal states.
https://www.paypal.com/us/cshelp/article/will-paypal-report-my-sales-to-the-irs-help543
https://www.irs.gov/newsroom/irs-an...ginning January,of the number of transactions.
I don't know if this means the IRS will keep the threshold at $20,000 for the total and each individual transaction has to be $6oo and then paypal will just report you regardless of what the IRS states? I'm more confused now.

 

I think you suppose to report every income even from selling personal stuff. If you sell it for less than you paid it will be loss.
https://www.irs.gov/businesses/understanding-your-form-1099-k

 

except the risk of the buyer not being a "friend or family"...
Ill wait until someone is audited to worry.

 

All I can say is not acceptable on this forum......

 

This may not be a tax thing. Dont banks report transactions above a certain amount, esp or only if in cash? I thought this was a govt control to make it harder for ppl to make their banks unknowingly participte in black market type transactions.

 

Oh it's a tax thing. They always need more, it's never enough.

 

86000 new IRS agents... Ummm but only for the super rich!!!! C'mon man!

 

This is actually good for me who always sells car parts at a loss. I try it out for a little, and then try something else. Someone gets a barely used part and I get the satisfaction of installing and trying different things, and now with a tax break..this is good

 

So if it is a loss can it offset gains? I can see every sock and pair of underwear going up at a loss once I wear them out.....

 

If it doesn't say you can't.......




Let us know how it goes.

 

RTFRB.......!!!

 

That would take more years than I have left.

 

The thing is, I dont think a guy would know until January 31 of 2024 when they send out the forms.

 

I know one of those crappy under the table, unlicensed handyman/ jack of all trades who normally slides under the IRS radar who got sent a tax bill in 2021 for $28k he didn't report on venmo from the year before. As expected he was pissed he got caught and went back to cash or personal check only to dodge taxes and child support.