I loaned my grandson $1750. He sends me 100-150 monthly via Venmo. 1099? Seriously?

No thanks.

quote:

Originally posted by Tn226:
I loaned my grandson $1750. He sends me 100-150 monthly via Venmo. 1099? Seriously?

My understanding is Venmo sends you the 1099. I’m not sure the series of payments you described meets the requirements though. I thought it was any third party transaction payments over $600. Also, I believe it’s only required for payments for goods or services. The grandson’s payments to you are not payments for goods or services.

quote:

The grandson’s payments to you are not payments for goods or services.

Loans aren’t a service?

I'll put this in the most simple form possible.

Biden wants your money. He'll get it one way or another.

quote:

Originally posted by Tn226:
I loaned my grandson $1750. He sends me 100-150 monthly via Venmo. 1099? Seriously?

By the letter of the law, any interest he pays you is income to you. You are obligated to charge him a fair market rate of interest. There are lots of details depending on the amount of the loan, the type of loan, and if you are charging less than fair market interest.

For a small loan like this it is supremely stupid to put such a burden on you to do all the paperwork, especially since there is likely zero tax implication.

This is how you tax the people. Go after the majority who can’t afford attorneys to manage their finances.

Billionaires are insulated by an army of tax attorneys.

quote:

Originally posted by ZSMICHAEL:
Just keep good records.

While I'm sure this is sound advice, free people should not be required to document every nickel and dime transaction.

quote:

Originally posted by Veeper:

Loans aren’t a service?

Loans are not a service. With barbers, painters, the yard guy, pool cleaner, etc., they provide a service and you give them money for that service. The accounting is completely different for a loan than a service.

F U Raisin! I’ll just do multiple payments, check or money order. Kiss my American ass!

quote:

Originally posted by hjs157:

quote:

Originally posted by ZSMICHAEL:
Just keep good records.

While I'm sure this is sound advice, free people should not be required to document every nickel and dime transaction.

That way the IRS can use your own records against you.

What could possibly go wrong?

^^^^^^^^
That is why I hire a CPA. Have you ever been audited?? Good records are essential. No receipts forget that deduction. Frankly, your remark is off the wall. LOL

….and just like that, I’m a billionaire.

rope a dope and will never happen - gives us something to worry about while they steal elections

quote:

Originally posted by ZSMICHAEL:
^^^^^^^^
That is why I hire a CPA. Have you ever been audited?? Good records are essential. No receipts forget that deduction. Frankly, your remark is off the wall. LOL

The issue is having good records for things for which good records were never required and no one has kept those records.

If I sell a guitar I’ve owned for 15 years on eBay, all of the sudden now, I have to have proof of what I paid for it. It ridiculous, I’m not in the business of selling guitars, I have no interest in being in that business.

On a side note, I did a ton of remodeling to my house 17 years ago and saved every single receipt. I literally have a shoe box full of $50,000 in receipts from Home Depot. I knew I had to keep those receipts to prove what the basis in my home is when I go to sell it. Not a single one of those receipts is legible. They all faded.

[quote]If I sell a guitar I’ve owned for 15 years on eBay, all of the sudden now, I have to have proof of what I paid for it. It ridiculous, I’m not in the business of selling guitars, I have no interest in being in that business.[/quote
^^^^^^^^^^^^^^
I don't come up with this stuff.

quote:

Not a single one of those receipts is legible. They all faded.

^^^^^^^^^^^
Laser printer. Should have scanned them.

^^^20/20 hindsight. I didn’t know and I was too busy doing the actual work of remodeling. I found out about 10 years later when I bought a tool from Advance Auto Parts and the clerk said to take a picture of the receipt with my phone for the lifetime warranty. He said the receipts fade. When I got home, I checked that shoe box and SOB if that clerk wasn’t right. What a gut punch.