[viggen]

Not sure where to post this but might be helpful to those who buy and sell electronics often.

Preface:  It's about 1099-k

https://youtu.be/92sX4kS5XNQ

[rodge827]

Watched the video and thanks for posting. Some jokes just aren’t funny especially when the hand of big government is running the show!

[BikeFi10]

The "joke" of it is how insane it is.
Guess those new 87k irs people have to earn their keep and help recoup the trillons blown by you know who.
Lose the digital trail, use cash as much as possible.
Gotta go, their on me

[Rusty Jefferson]

Shouldn't take long for this to end up in Quarantine. 

[rollo]

Shouldn't take long for this to end up in Quarantine. 

 Well lets hope it does not. This concerns private sales of audio in USA.

charles

[maxima95]

There is a lot of misinformation on this. 

If you are an average Joe selling used audio equipment, and you sell the item for less than you paid for it, you don't have any income and don't pay any tax.  All you have to do is report the cost of the items (I grouped them together as Used personal electronic equipment) and what you received.  I put this on one line of the Capital Gains and Losses form (which I had to submit anyway).

I got  1099-K last year.  The amount received is shown by month.  It took me all of 10 or 15 minutes to check my costs and make a handwritten spread sheet.

For people selling used personal audio equipment with a larger sales volume, it would be more tedious, but the same process.

For those not selling used personal equipment and/or making a profit - different story.

[Phil A]

It all depends on where one buys something from and how old it is.  For example, if someone buys something used from an individual for cash and then sells it via PayPal, it could end up being a pain or buying something new from a store a while back and if the item is old enough or the store is out of business, it might be difficult to substantiate the original cost. 

I don't sell many things as I tend to often rotate them to secondary systems and if something gets displaced and isn't worth tons or is too much of a pain to ship (just gave an old Rel Storm III sub to a friend - didn't have the box, it was about 20 years old - they do sell for around $400-$600 - I had two of them and one bit the dust and I bought new subs), I'll give it to someone. I made a conscious decision a year ago - no more selling via PayPal.  I will take Zelle, a check after it clears. a postal money order or whatever method doesn't result in the need to deal with it.

They should be throwing more of the burden back on PayPal but it's easier to throw it back on the individual.  For examble, if I bought something vis Paypal, they took a commission and should have a record of it (I realize it could get more difficult to identify with something like an audio cable).  If the same item is sold within the statutory period via PayPal, they should be required to compute any capital gain and loss.  It works that way with stocks.  If I buy something from a broker, they make a commission just like PayPal does, and when I sell it via that broker I get my 1099 with a gain or loss.

[viggen]

There is a lot of misinformation on this. 

If you are an average Joe selling used audio equipment, and you sell the item for less than you paid for it, you don't have any income and don't pay any tax.  All you have to do is report the cost of the items (I grouped them together as Used personal electronic equipment) and what you received.  I put this on one line of the Capital Gains and Losses form (which I had to submit anyway).

I got  1099-K last year.  The amount received is shown by month.  It took me all of 10 or 15 minutes to check my costs and make a handwritten spread sheet.

For people selling used personal audio equipment with a larger sales volume, it would be more tedious, but the same process.

For those not selling used personal equipment and/or making a profit - different story.

The video is saying exactly the same thing.  The burden of proof is on you.

[Bendingwave]

The "joke" of it is how insane it is.
Guess those new 87k irs people have to earn their keep and help recoup the trillons blown by you know who.
Lose the digital trail, use cash as much as possible.
Gotta go, their on me

Only deposit $599.00 at a time into your bank account. LOL

[viggen]

Don't be an early filer in 2023.

https://www.al.com/news/2022/12/early-tax-filer-why-irs-says-you-should-file-later-in-2023.html

[Don_S]

Not sure where to post this but might be helpful to those who buy and sell electronics often.

Preface:  It's about 1099-k

https://youtu.be/92sX4kS5XNQ

I think you chose poorly. Definitely not humorous and therefore should not have been posted under humor and jokes. I expected a smile and did not get one.

[viggen]

dark humor.  things in your life you have no control over... laugh about it... better for your health.

[GregC]

Only deposit $599.00 at a time into your bank account. LOL

The reporting requirement for the 1099-K is cumulative.  $599 + $2 = 1099-K

[GregC]

I will take Zelle, a check after it clears. a postal money order or whatever method doesn't result in the need to deal with it.

Many buyers say "Why should I trust you?" and are unwilling to purchase higher priced used items.  They say  "Why should I send money to a stranger on the internet when I do not even do that for my family?" 

Selling used audio has become painful.  Not to mention how some people abuse the system to get free tryouts knowing Paypal will uphold any buyer complaint.  Worse yet, a refund does not include the fees out of pocket.   

[Phil A]

Many buyers say "Why should I trust you?" and are unwilling to purchase higher priced used items.  They say  "Why should I send money to a stranger on the internet when I do not even do that for my family?" 

Selling used audio has become painful.  Not to mention how some people abuse the system to get free tryouts knowing Paypal will uphold any buyer complaint.  Worse yet, a refund does not include the fees out of pocket.

I agree it has become more painful and that's why I tend to rotate things to secondary systems or even give them away.  When I sell something, which isn't often, it is not out of desparation.  If the buyer doesn't like the terms, my attitude is go somewhere else.  Sometimes on the stuff I sell, it might even be easier to trade them in when buying something higher priced from a dealer.  It might be a bit less money buy then one doesn't have any of the hassle that comes with it.  I probably have a few things I could sell right now but they are not really that expensive and to me it just isn't worth the effort.  There is just zero circumstances where I'm going to pay fees to some places and then have the problem of dealing with a 1099.

[Saturn94]

I agree it has become more painful and that's why I tend to rotate things to secondary systems or even give them away.  When I sell something, which isn't often, it is not out of desparation.  If the buyer doesn't like the terms, my attitude is go somewhere else.  Sometimes on the stuff I sell, it might even be easier to trade them in when buying something higher priced from a dealer.  It might be a bit less money buy then one doesn't have any of the hassle that comes with it.  I probably have a few things I could sell right now but they are not really that expensive and to me it just isn't worth the effort.  There is just zero circumstances where I'm going to pay fees to some places and then have the problem of dealing with a 1099.

Same here. 

[AllanS]

… it might even be easier to trade them in when buying something higher priced from a dealer.  It might be a bit less money buy then one doesn't have any of the hassle that comes with it.

Completely agree.  I hate the hassle of selling stuff.  It may be easy money for someone else but I’m content trading in.

[Phil A]

Selling anything expensive is generally a PITA for an average person.  For example, I typically just trade cars in.  The trade in offsets the sales tax for the value of the trade in.  The dealer also takes care of all the motor vehicle paperwork so I don't have to deal with crowds or stand in line.  About 7-8 months back, one of my Rel Storm III subs finally went (about 20 years old).  I bought a pair of new Rel S/812s for the main system, stuck the bad sub in the garage (where it acts as a stand for something now) and the working one in a closet.  I got over to a friends place a couple of months back and just gave him the sub.  He doesn't have much in the way of funds.  There's several for sale right now in the range of $500-700.  However, I don't have the boxes and rather than go through the process of attempting to deal with selling, it was just easier to load it in my car and drive 45 minutes.  Speakers, especially without the box, are tougher to sell (and I also have subs in my back-up systems so there was no place for the Rel and if something ever went down the road, I'd just get one either new or used).  I have a friend who has been trying to sell Ohm Walsh speakers for a bit (he had a friend who designed his new speakers and he built them as he is handy that way) and without the boxes he's hasn't gotten them sold yet.

So, in light of the above, the 1099 issue is just the icing on the cake.  It just adds another weight to a heavy lifting process.  The PayPal fees have gone up over the years (as has the listing fees on a site I used many years ago but have not used in some time).  I'd guess that PayPal (and I do use it to buy smaill things once in a while vs. a credit card especially from a vendor that's new to me and I'll likely never buy anything from them again and see no reason to let them have my credit card number) has seen a bunch more Friends and Family transactions as well as people using Zelle or other forms of payment.  So it's probably a lose lose situation for them too.

[FullRangeMan]

Seems the only viable way to sell will be cash local pickup.
Many people say the situation will get much worse.

[charmerci]

I've bought and sold stuff via eBay as I live in a small town in the west so the sales market here is highly limited. I think that I've sold (bought used) about $2000 worth of stuff this year -mostly camera equipment. I think that I'll probably just pay the tax. I've heard that documenting your purchases will slow the tax return. So I'll just look at whether it's worth the time to do so. If it saves me a few hundred dollars, it'll be worth it as I don't have too much net worth.