My understanding is if you sell something for cash and then foolishly deposit it in your bank. the banks will be required to report all transactions over $600 and you may be explaining the transaction to the IRS.

quote:

Originally posted by 1s1k:
So if you have to pay on gains what about losses.

That is a great point, just like the scheme to charge the wealthy on unrealized capital gains. If you tax the gains then the losses should be fair game. Not saying they will be, but these plans to raise tax revenue seem to be thought through by the intelligence of a second grader. Keep pushing, this eventually all end up at the same place. These two Americas cannot Coexist we will go one way or the other.

There is a reason the government wants a completely cashless society and have brainwashed the millennial/Zoomer generation to never use or carry cash. There is also a reason the government is terrified of an armed populace and cryptocurrency. I’m in no way saying cryptocurrency is the answer, but if you watch the actions of the DOJ and FBI they are telling. The policies of this administration and the commies within of Modern Monetary Theory is short sighted and fails to identify the unintended consequences of believing you can’t fail because you can just keep printing money. It is hurting our country and distributing our hard earned wealth around the globe. If this keeps up, expect the Petro dollar to become a thing of the past, erasing the biggest victory for the USA delivered by Kissinger.

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Originally posted by sigfreund:
Question for the knowledgeable in line with this:
As I long understood the general rule about income from sales of personal property, and as mentioned in the article, if it’s sold for less than it was purchased for, the sale isn’t taxable. My question, though, is “less than” based on absolute dollar amounts or can it be adjusted for inflation? For example, if I sell the S&W model 60 that I bought for $150 in 1969 and which would be equivalent to about $1175 today, and sell it for $800 now, would that be taxable?

(This has nothing to do with what the IRS would know by whatever means, it’s about what the law and/or rules are.)

In short, no. You don’t get to adjust for inflation. That’s the real rub. The government causes inflation, then taxes you on the artificial gain. Completely immoral.

quote:

Originally posted by Gustofer:

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Originally posted by ZSMICHAEL:
The only time you get a capital gain break is when you inherit stocks.

Selling your primary home is exempt as well...unless they've changed that.

They changed it a long, long time ago. Here's the current law.

If you are single, you will pay no capital gains tax on the first $250,000 of profit (excess over cost basis). Married couples enjoy a $500,000 exemption. There are, however, some restrictions.

https://www.investopedia.com/a...italgainhomesale.asp

This is about ONLINE sales, correct?

My flea market booth, not so much. If the owner sends me a 1099 in January, there's been no hint yet of that by anyone.

And its cash, so to speak. I expect to see a lot more demand for the empty booths around here.

quote:

Originally posted by Udo:
My understanding is if you sell something for cash and then foolishly deposit it in your bank. the banks will be required to report all transactions over $600 and you may be explaining the transaction to the IRS.

Whoa! Historically, the threshold for reporting cash transaction has been $10,000. Am I to understand this has been lowered to $600?

Does this is impact all the Tick Tock and Instagram stars that are making all this money posting silly videos?

quote:

Originally posted by Udo:
My understanding is if you sell something for cash and then foolishly deposit it in your bank. the banks will be required to report all transactions over $600 and you may be explaining the transaction to the IRS.

They tried to do that last year as well but failed. They wanted to require banks to report all activity in any account with a balance of $600 or more. I think the banks pushed back hard enough that it didn't pass.

Don't worry, they'll try again.

I've done some small eBay sales in 2022 and am slowly approaching $600. I'm sure when I'm close enough they will demand my SSN. As for PayPal, I've completely discontinued using that.

Yeah, We heard about this a few months ago and considered not selling online.

Two of us have stopped selling.

A friend of mine got a notice that he will not receive his funds unless he gives them his Social Security Number. Not happening.

Selling one nice guitar or watch will put you over that threshold easily. It’s a shame our government spends so much energy on finding new ways to fuck us while at the same time being as fiscally responsible as a meth addict.

quote:

Originally posted by stickman428:
Selling one nice guitar or watch will put you over that threshold easily. It’s a shame our government spends so much energy on finding new ways to fuck us while at the same time being as fiscally responsible as a meth addict.

Well put. Robbers.

You are being forced to file a business tax return. That way you can show the cost against the gain.
I don't know exactly how you show that for items you inherited, personal items you once paid for and now want to sell, etc.
For years they have been trying to push people to file the 1040EZ if they are below about $15,000 in deductions and a certain income. Then they keep adding BS like this.

....and it'll still not be enough money for them.

Basically as of Jan 1st of this year if you sell on Ebay or Amazon if you sell more than $600 dollars total in sales both companies by law will now send a 1099 to you and the IRS. So even if you tried to lie how much you made they will know and you still have to pay income taxes on those items sold.

Which is such a low amount that for most sellers who do it as a hobby or for some extra cash it will no longer be worth it.

Example my best friend it's like a addiction he goes to flea markets and garage sales on the weekends and resells all kinds of items on Ebay and averaged over 10K a year or more doing so. But when you add all the Ebay fees and now paying income tax it's close to 30 percent in fees of the final sale price. Not including what it cost to acquire the item. So you pay 30 dollars for the item then sale it for 100 dollars pay all the fees and taxes another 30 dollars, plus shipping and your lucky if you clear 40 bucks for all the work and risk. So in the end you make a measly 15 bucks.

For me I sold most of my high priced items over the years before this took effect. But I do have some high end collectibles that I paid below retail and they are worth a small fortune now that they are out of print. Yes I will get dinged a little more in fees but I don't sell all the time and it's stuff I just want to get rid of and make some profit.

It's just another way for the government to screw the hardworking little guy while we have tons of people on EBT, Welfare, Section 8 etc who know how to cheat the system.

I'll be getting a lot more creative with deductions because of this BS. The (used) amp I sold yesterday for $1200 retails new for $1949 and is backordered as far as the eye can see. Gee, I just can't remember what I paid for it, but I think that website that has it for $1949 is gonna be my price guide come tax time next year.

It's not about the money, it's about control.

Those on the take (per dfens post) are "compliant" to the government, even though they are cheating, they are careful to lick the hand that feeds them.

They will vote, they will piss and moan about "what they want/need", and the government will oblige them a pittance with laws and amendments that provide them a "win" in exchange for votes and support of agenda.

Meanwhile, those that desire to be self sufficient, free and unencumbered by the government, will find themselves at odds in greater amount over time.

You want to tear down a mountain? You use soft gentle rain, apply some cold, some time, and eventually you get rubble.

The government is a machine that has its parts continually changed, and it cares not how long it takes to tear down the mountain, but once it gets to the point of being destructive, it never ceases that effort.

Since the policies and actions of the government directly affect the value of the dollar, the adjustment for inflation of personal property should be the basis for determining any gain/profit on items like collectables, that increase in actual value, as opposed to the wearing down of the value of the dollar, leaving the item "above" the line of its actual worth in the current devalued dollars.

I would go as far as to make it that any item over a certain age (say 5 years) is no longer taxable, since one mus provide storage, protection and care for the item.

Try to store an item in a storage facility that is climet controled and secure, for free.

Same principal.

I hate the thief, while understanding the mind of the thief, he believes it is his only means of surviving.

I hate those who "pretend" to be doing me "good", while using what I pay in taxes to fashion sticks to beat me and take what they have not earned, more.

Another nudge towards white collar crime.
Feckless bastards.

quote:

Originally posted by stickman428:
Selling one nice guitar or watch will put you over that threshold easily. It’s a shame our government spends so much energy on finding new ways to fuck us while at the same time being as fiscally responsible as a meth addict.

Well put.


As mentioned in a much earlier post, many artists/musicians are heavily affected by this and by no means have much wealth. Gear flipping is generally part of the business.

How many times you gonna tax something? When does government revenue exceeds original cost basis?

And now the subterranean economy will flourish.

I love it.

Just wait until new Schedule C people find out they are subject to "depreciated basis".