New 1099k rules...and how it impacts gear junkies/golfers. Is this actually a good thing? CPAs feel free to chime in (merged)

[wobgon]

I asked this somewhere before on here but will ask again. Someone told me they also include refunds on your 1099. Anyone know if that is true?

[brew4eagle]

3 hours ago, wobgon said:

I asked this somewhere before on here but will ask again. Someone told me they also include refunds on your 1099. Anyone know if that is true?

I did see a refund on my paypal 1099k.  Also, on ebay 1099k there was a sale that I ended up canceling when buyer requested.  Item sold later so it was on the 1099k twice even though I really only sold it once.  If you're going to keep buying/selling you could make things a lot easier by keeping a spreadsheet running throughout the year and scanning receipts.

[Bgprep24]

I'm not seeing it's even worth putting it on your taxes if your selling only $1000 in clubs for a loss. Maybe $10,000... Doubt they will come after you for selling a couple of $500 Scottys

[brew4eagle]

2 minutes ago, Bgprep24 said:

I'm not seeing it's even worth putting it on your taxes if your selling only $1000 in clubs for a loss. Maybe $10,000... Doubt they will come after you for selling a couple of $500 Scottys

You and the IRS receive the 1099K, so it would be wise to include it.  They make the rules, not us.

[Krt22]

On 2/12/2022 at 1:57 PM, brew4eagle said:

You and the IRS receive the 1099K, so it would be wise to include it.  They make the rules, not us.

Yep. I’ve been hit with a cp2000 over a $200 1099. Heck I even got one for a $0 1099 (sold RSUs at vesting value).

[br61]

I just saw this thread, I didn't read many of the replies. I got a 1099K from Egay two weeks ago, just over $1100 on the form. All I did was to sell two sets for a friend and I didn't even make any income. What do I need to do? Or am I out of luck?

 

Edited February 14, 2022 by br61

[brew4eagle]

23 minutes ago, br61 said:

I just saw this thread, I didn't read many of the replies. I got a 1099K from Egay two weeks ago, just over $1100 on the form. All I did was to sell two sets for a friend and I didn't even make any income. What do I need to do? Or am I out of luck?

 

Enter the 1099k value as your 'business income', offset that amount with Cost of Goods on Schedule C

[casey_0507]

On 2/13/2022 at 8:32 PM, brew4eagle said:

Enter the 1099k value as your 'business income', offset that amount with Cost of Goods on Schedule C

Can we also offset income from 1099-k by packaging materials??

[brew4eagle]

36 minutes ago, casey_0507 said:

Can we also offset income from 1099-k by packaging materials??

I'm not sure.  I only sell a few golf things and lose money easily on just the items.  So I just offset the exact amount of the income so it comes to $0.  I don't claim any losses as I don't consider it a business.

[Krt22]

On 2/13/2022 at 5:08 PM, br61 said:

I just saw this thread, I didn't read many of the replies. I got a 1099K from Egay two weeks ago, just over $1100 on the form. All I did was to sell two sets for a friend and I didn't even make any income. What do I need to do? Or am I out of luck?

 

It was sent by error. You should have received an email stating so ( I did at least)

[brew4eagle]

11 minutes ago, Krt22 said:

It was sent by error. You should have received an email stating so ( I did at least)

Depends on what state you live in, several states require filing the 1099Ks as of reporting year 2020

[Krt22]

2 minutes ago, brew4eagle said:

Depends on what state you live in, several states require filing the 1099Ks as of reporting year 2020

Oof. Love me some government 

[brew4eagle]

1 hour ago, Krt22 said:

Oof. Love me some government 

They provide my pay checks so I'm not as critical

[cflo2382]

I remember skimming through this thread and thinking to myself I wouldn't have to worry about this because "bag is set 2022"... And I now find myself putting together a buy/sell spreadsheet, haha. I guess all it comes down to is doing just that - tracking what you paid for something and what you sold it for (and having receipts just in case). As many said, we're probably breaking even or losing money in the long run with buying/selling clubs. The only thing that I'd be unsure of is if you are sent a 1099-k and submit a Schedule C to offset it, does that take you away from the standard deduction option and put you into itemizing deductions? Might have to reach out to my tax guy, after all.

Edited February 23, 2022 by cflo2382

[brew4eagle]

2 hours ago, cflo2382 said:

I remember skimming through this thread and thinking to myself I wouldn't have to worry about this because "bag is set 2022"... And I now find myself putting together a buy/sell spreadsheet, haha. I guess all it comes down to is doing just that - tracking what you paid for something and what you sold it for (and having receipts just in case). As many said, we're probably breaking even or losing money in the long run with buying/selling clubs. The only thing that I'd be unsure of is if you are sent a 1099-k and submit a Schedule C to offset it, does that take you away from the standard deduction option and put you into itemizing deductions? Might have to reach out to my tax guy, after all.

You can still take the std deduction in this situation.  I'm not a tax pro, but that's how my tax software set me up the last 2 years when I've had to mess with 1099k and sched c

[endy]

3 hours ago, cflo2382 said:

I remember skimming through this thread and thinking to myself I wouldn't have to worry about this because "bag is set 2022"... And I now find myself putting together a buy/sell spreadsheet, haha. I guess all it comes down to is doing just that - tracking what you paid for something and what you sold it for (and having receipts just in case). As many said, we're probably breaking even or losing money in the long run with buying/selling clubs. The only thing that I'd be unsure of is if you are sent a 1099-k and submit a Schedule C to offset it, does that take you away from the standard deduction option and put you into itemizing deductions? Might have to reach out to my tax guy, after all.

Am I correct in thinking that Venmo and PayPal History would qualify as “receipts” 

 

Also, this exact situation has happened with me also and it’s hilarious that I thought I’d make it through the year and it’s mid February 😂😂😂

Edited February 23, 2022 by endy

[cflo2382]

2 minutes ago, endy said:

Am I correct in thinking that Venmo and PayPal History would qualify as “receipts” 

 

Also, this exact situation has happened with me also and it’s hilarious that I thought I’d make it through the year and it’s mid February 😂😂😂

Not sure on the Venmo/PayPal history receipts but I would imagine it would qualify to some extent. When I purchase something on here, I usually always add in the note section what it was being purchased so maybe that'll help, too.

[endy]

1 hour ago, cflo2382 said:

Not sure on the Venmo/PayPal history receipts but I would imagine it would qualify to some extent. When I purchase something on here, I usually always add in the note section what it was being purchased so maybe that'll help, too.

Gotcha, that’s what I do as well. I’m just wondering how else I would obtain receipt of purchase and/or sale through PayPal or Venmo G/S, just assumed everything would be right there electronically. 

[miket_81]

It would be really cool if we could get another forum section called "Let's Trade"

You could list all the stuff you have and everything you're interested in and just have to pay the difference if there is one if you make a deal.

 

I think this could help avoid problems with this stupid 1099 deal.

[brew4eagle]

2 hours ago, miket_81 said:

It would be really cool if we could get another forum section called "Let's Trade"

You could list all the stuff you have and everything you're interested in and just have to pay the difference if there is one if you make a deal.

 

I think this could help avoid problems with this stupid 1099 deal.

My guess is you'd run into more problems via unsatisfied trades and scams then the minor inconvenience of the 1099k.  Now if this could be set up as local in person swap meets then I'd be interested in those.

[TwistedSister]

40 minutes ago, brew4eagle said:

My guess is you'd run into more problems via unsatisfied trades and scams then the minor inconvenience of the 1099k.  Now if this could be set up as local in person swap meets then I'd be interested in those.

Done many trades on here.  Never had a complaint nor received one.  Sounds like a good idea to me as well. 

[brew4eagle]

2 hours ago, dhacker56 said:

Done many trades on here.  Never had a complaint nor received one.  Sounds like a good idea to me as well. 

Have you done those trades via exchanged PayPal payments or just on faith?  If the former, then 1099k is still in play.

[TwistedSister]

9 minutes ago, brew4eagle said:

Have you done those trades via exchanged PayPal payments or just on faith?  If the former, then 1099k is still in play.

No trust.  Just make sure the trader has good feedback.

[brew4eagle]

Just now, dhacker56 said:

No trust.  Just make sure the trader has good feedback.

With the potential for hacked accounts, that's a very risky approach 

[TwistedSister]

2 minutes ago, brew4eagle said:

With the potential for hacked accounts, that's a very risky approach 

I haven't had any issues.  I always get an email address and finish setting up the transaction there.  Thanx for your suggestions.

[brew4eagle]

1 minute ago, dhacker56 said:

I haven't had any issues.  I always get an email address and finish setting up the transaction there.  Thanx for your suggestions.

I assume that email address comes via PM, and if the wrx account was hacked they would just PM you an email address they can reply to for finishing the transaction.  Just something to consider, it's a vulnerable approach and just takes 1 bad instance to get screwed.

[TwistedSister]

1 hour ago, brew4eagle said:

I assume that email address comes via PM, and if the wrx account was hacked they would just PM you an email address they can reply to for finishing the transaction.  Just something to consider, it's a vulnerable approach and just takes 1 bad instance to get screwed.

You do what you want.  You are one argumentative guy!

[brew4eagle]

1 hour ago, dhacker56 said:

You do what you want.  You are one argumentative guy!

Just trying to help people from being scammed, didn't realize we were arguing

[TwistedSister]

12 hours ago, brew4eagle said:

Just trying to help people from being scammed, didn't realize we were arguing

Sir I have already told you that I have NEVER had an issue.  But you continue to tell me NOT to trade on here.  I am a big boy and am well capable of assessing any risk!.  How many trades have you made on here?

[brew4eagle]

7 hours ago, dhacker56 said:

Sir I have already told you that I have NEVER had an issue.  But you continue to tell me NOT to trade on here.  I am a big boy and am well capable of assessing any risk!.  How many trades have you made on here?

I have never told anyone not to trade.  I am pointing out the risks as folks are suggesting it as a go around for the 1099K.  If trades were to see an uptick for this reason, then trade scams will 100% see an uptick as well.  I'm not sure why this exchange annoys you so much, maybe try to relax a bit, sir.