New IRS law effect metal detector sales ?

[DigDog]

So now apparently new law any transaction $600 and up has to have a 1099.
Are dealers going to do a 1099 now on all detectors over $600?
Maybe it will make some prices drop?

 

[sprchng]

It's not an IRS law but part of the Inflation Reduction Act that the Resident put through Congress with the approval of all the Progressives Socialists. It forces all third partys like paypal that facilitate money transfers to report any amount over $600 to the IRS with a 1099k. Sending payment by Goods and Services will accumulate toward that amount but not "loans and gifts" through Friends and Family" on paypal. Other outfits similar to paypal probably have similar payment methods.

A used detector selling for less than the purchase price can be shown as a loss on the taxes but you will have to have documentation to prove that and file the correct schedules with your taxes. The real onus of this law is that if you live in a location where there are sales taxes(gross receipts) you will be liable for the sales tax on ALL amounts on the 1099k regardless of whether it is sold for profit or loss.. Now , to make matters worse , to pay those sales taxes you will most likely have to register and get a business license where yoou live and will end up required to file a gross receipts tax report on either a monthly or semi-annual basis.

If anyone complains about this to you be sure to ask them how they voted in 2020!

 

[DigDog]

It's not an IRS law but part of the Inflation Reduction Act that the Resident put through Congress with the approval of all the Progressives Socialists. It forces all third partys like paypal that facilitate money transfers to report any amount over $600 to the IRS with a 1099k. Sending payment by Goods and Services will accumulate toward that amount but not "loans and gifts" through Friends and Family" on paypal. Other outfits similar to paypal probably have similar payment methods.

A used detector selling for less than the purchase price can be shown as a loss on the taxes but you will have to have documentation to prove that and file the correct schedules with your taxes. The real onus of this law is that if you live in a location where there are sales taxes(gross receipts) you will be liable for the sales tax on ALL amounts on the 1099k regardless of whether it is sold for profit or loss.. Now , to make matters worse , to pay those sales taxes you will most likely have to register and get a business license where yoou live and will end up required to file a gross receipts tax report on either a monthly or semi-annual basis.

If anyone complains about this to you be sure to ask them how they voted in 2020!

So if a dealer sells a detector to you for over $600 do they have to do a 1099 and report it only if paid by paypal and certain other methods like other apps or any method of payment even credit card? Cash is supposed to be reported obviously.
I wouldn’t imagine too many used detectors going for over $600.
Some might go for $599 now lol
I don’t know how the used are usually paid for on for example the classifieds on the forums. I don’t imagine people are sending cash through the mail.

 

[DigDog]

It's not an IRS law but part of the Inflation Reduction Act that the Resident put through Congress with the approval of all the Progressives Socialists. It forces all third partys like paypal that facilitate money transfers to report any amount over $600 to the IRS with a 1099k. Sending payment by Goods and Services will accumulate toward that amount but not "loans and gifts" through Friends and Family" on paypal. Other outfits similar to paypal probably have similar payment methods.

A used detector selling for less than the purchase price can be shown as a loss on the taxes but you will have to have documentation to prove that and file the correct schedules with your taxes. The real onus of this law is that if you live in a location where there are sales taxes(gross receipts) you will be liable for the sales tax on ALL amounts on the 1099k regardless of whether it is sold for profit or loss.. Now , to make matters worse , to pay those sales taxes you will most likely have to register and get a business license where yoou live and will end up required to file a gross receipts tax report on either a monthly or semi-annual basis.

If anyone complains about this to you be sure to ask them how they voted in 2020!

And if its not a law then how is it mandatory or is it optional.?
The thing that gets me is the change in the threshold amount was so drastic and ludicrous.
It was at that any transaction over $20,000 had to be reported. How do you go from $20,000 all the way down to $600. Maybe $6,000 would have been a more reasonable amount.
So exactly how will this apply to metal detector sales?

 

[CoinShooter01]

This applies to ANYTHING, not just metal detectors.

Your metal detector, old television, chain saw, wifes shoes, or the shirt on your back.

Lets say you purchased the item for $1000.
Some time latter, lets say you sell the same item for $600.

If the sale is not cash, and involves a paper trail, (ie. Internet sales, Paypal, Vimo, Visa, Master Card, credit card, Ebay, Facebook marketplace, etc)., you will get a 1099 in the mail, for the amount of $600

The govt. is going to absolutely assume that the $600 you received, was income, and charge you tax on the $600.

- Without a inital purchase receipt, you are liable for tax on the $600.

- With a inital purchase receipt, you will still receive a $600 1099, but in reality you ended up with a $400 loss, so ultimately there would be no tax due, after you or your accountant submit receipts, along with your tax return.

All part of Joe Bidens "Build Back Better"plan.

 

[sprchng]

In addition , if you lived in a municipality like mine , the State will pick up the untaxed sales and want you to pay sales tax , regardless of the profit or loss involved. $600 of accumulated sales will incur a sales tax of $40 to $50 and in order to pay that , you will have to get a business license with a registered Federal I.D. number(SS#) and report monthly or semiannually even if there are no longer any sales.

Most vendors who take paypal won't be affected but the little guy that sells things on line will be waking up with a real headache. They will have to take Friends and Family payments , cash , check or money orders to keep a sale off the books. This was the imbecile in the White House way to tax billionaires.

 

[SeabeeRon]

This is going to effect "person to person" sales more the a business. Any reputable business is going to reporting all sales anyway.

 

[DigDog]

I understand it applies to everything but because this is a metal detecting forum and that off the top of my head not currently interested in anything over $600 except a metal detector was asking on here how its going to change anything. The thing that’s concerning more than just being a pain in the ass is it was designed to trigger possible audits which you might not be doing anything wrong but who wants to go through that.
They didn’t hire over 80,000 not a typo not 8,000 new irs agents to just stuff envelopes
It’s definitely going to hinder business people are less likely to do any transactions over $600 unless they absolutely have to

 

[sprchng]

$600 is the accumulated total of ALL sales using a third party , not just things over $600. It wouldn't be hard to exceed $600 with paypal goods and services selling neck ties much less detecting equipment.

 

[tcornel]

The seller gets the 1099. He then has to do tax reporting, consult your tax preparer. In most states there is an exemption for sales tax on sales of casual personal property. Again see your tax preparer if you have concerns. Tax prep fees at a minimum.

Remember this was presented as a spending bill to be paid for by tax increases on the rich. People buy into that time after time. The reality is quite different.

 

[DigDog]

The seller gets the 1099. He then has to do tax reporting, consult your tax preparer. In most states there is an exemption for sales tax on sales of casual personal property. Again see your tax preparer if you have concerns. Tax prep fees at a minimum.

Remember this was presented as a spending bill to be paid for by tax increases on the rich. People buy into that time after time. The reality is quite different.

Just wondering how it was going to effect everything in the grand scheme of things. This is really unprecedented. Very few things anymore are under $600 total. Heck you just book a flight and your in the mix

 

[tcornel]

Remember it’s the seller who gets the 1099. No reporting to the buyer.

The issue is you sell a detector, extra coil, etc. for 650. You had paid 1000. IRS can say prove it or pay tax on the 650. The burden of proof is on the taxpayer. Did you save all your receipts?

Oh, don’t forget to send the government tax on what you sold that ring you found on the beach for.

Plus the fees to the tax preparer.

 

[DigDog]

Remember it’s the seller who gets the 1099. No reporting to the buyer.

The issue is you sell a detector, extra coil, etc. for 650. You had paid 1000. IRS can say prove it or pay tax on the 650. The burden of proof is on the taxpayer. Did you save all your receipts?

Oh, don’t forget to send the government tax on what you sold that ring you found on the beach for.

Plus the fees to the tax preparer.

So anything you sell has nothing to do with buying?

 

[tcornel]

Correct. 1099’s go to the recipient of the funds.

 

[david bull]

My guess is that 90% of these 1099’s will go directly in the garbage,especially if they are borderline $600.Are they sent registered mail?Did someone sign for them?As disorganized as the IRS is,it would be hard to imagine them spending a lot of time chasing $600 sales.This will be further complicated when the new House cuts funding for 86,000 New agents,like they could find that any qualified employees to start with. I’m sure the scammers are tickled now that the folks that used to used PayPal goods&services are now regulated to friends&family.

 

[sprchng]

The Imbecile and Thief will get to F&F soon enough and a "donor" will be required to get a certificate of gift or loan from the recipient . Don't forget a copy of the 1099 goes to the IRS as well so placing it gently in the trash just sets you up for under reporting.

 

[autopilot42]

And if its not a law then how is it mandatory or is it optional.?
The thing that gets me is the change in the threshold amount was so drastic and ludicrous.
It was at that any transaction over $20,000 had to be reported. How do you go from $20,000 all the way down to $600. Maybe $6,000 would have been a more reasonable amount.
So exactly how will this apply to metal detector sales?

Spot on

 

[autopilot42]

It applies to any sale of any goods .

 

[autopilot42]

Your votes mean everything have a nice day

 

[autopilot42]

What happens when you sell a used car thanks Joe. FJB