The Party Is About To Be Over

Read it and weep. Elections have consequences ;

https://www.cnbc.com/2021/03/26/its-goin...sales.html

Read it and weep. Elections have consequences ;

https://www.cnbc.com/2021/03/26/its-goin...sales.html

I'm wondering if this will allow a person to file taxes with a long form?

Read it and weep. Elections have consequences ;

https://www.cnbc.com/2021/03/26/its-goin...sales.html

I'm wondering if this will allow a person to file taxes with a long form?

Well to go from ebay/etsy/paypal not reporting to irs unless your transaction gross total was $20,000 and 200 or more transactions ... to reporting if your gross is $600.00 regardless of the number of transactions is quite a shift. 

I imagine it will put a damper of hobbyists, part time sellers in all venues.

Read it and weep. Elections have consequences ;

https://www.cnbc.com/2021/03/26/its-goin...sales.html

I'm wondering if this will allow a person to file taxes with a long form?

Well to go from ebay/etsy/paypal not reporting to irs unless your transaction gross total was $20,000 and 200 or more transactions ... to reporting if your gross is $600.00 regardless of the number of transactions is quite a shift. 

I imagine it will put a damper of hobbyists, part time sellers in all venues.

That's a HUGE disparity. Where's the middle ground. I get it, they think 20k is too high to play fast and loose with taxes. How about 10k, 5k, or even 2k then.

If I make 5k from selling stuff on Etsy, am I really going to quit my job and stiff the Government? The difference just seems absurd. But then again, no one ever elected me to anything (probably a safe idea, in general, though).

Sent from my Pixel 4a using Tapatalk

I'm wondering if this will allow a person to file taxes with a long form?

Well to go from ebay/etsy/paypal not reporting to irs unless your transaction gross total was $20,000 and 200 or more transactions ... to reporting if your gross is $600.00 regardless of the number of transactions is quite a shift. 

I imagine it will put a damper of hobbyists, part time sellers in all venues.

That's a HUGE disparity. Where's the middle ground. I get it, they think 20k is too high to play fast and loose with taxes. How about 10k, 5k, or even 2k then.

If I make 5k from selling stuff on Etsy, am I really going to quit my job and stiff the Government?  The difference just seems absurd. But then again, no one ever elected me to anything (probably a safe idea, in general, though).

Sent from my Pixel 4a using Tapatalk

The 'green new deal' ain't cheap. The $ have to come from somewhere.

A few years ago there was a thing about the notion of taxing people people who win "gold" in MMORPGs like "World of Warcraft". The reasoning went that there are professional players ("gold farmers") who play only to win the imaginary gold in the game, then sell it on eBay for real currency. The eBay buyer can then use the transferred pretend gold to purchase upgraded armour and weapons for the game.
The analogy is made to winning a gold watch from another player in a real-world poker game. That gold watch is deemed to have an immediate cash value, and therefore is taxable income, just like cash winnings.

I imagine it will put a damper of hobbyists, part time sellers in all venues.

Presumably the hobbyists will be able to claim expenses for materials, some portion of their internet service provider costs, etc.

At first glance, I don't care too much, as my State already taxes internet purchases. You either have to keep detailed records, or use the State's formula. Enacted because LL Bean's intergalactic HQ is here and they didn't like the idea of losing customers to Lands' End, Cabelas, etc, assuming the customer bought online and avoided sales tax. A State bordering us has NO sales tax, so my State lumped that in as well, out of state purchase on which no sales tax was paid. How I think about it is sort of, well, I like paved roads, first responders, internet, and infrastructure, all of which the monies have to come from somewhere. The realistic reason I am not bothered: I don't buy and sell a lot on ebay or the BST. If I hit $600 I'd be shocked. But then, I am not selling and buying the big boys like Wolfman and the others north of $200. If I did, maybe I'd feel different? I don't know. I want to pay attention, even if it doesn't affect me.

In the States any income you derive from sales is a hobbyist has always been reportable, whether you receive a tax form or not. However, the income is only taxable if your income from the hobby exceeds your hobby expenses. Thus, if you enjoy making shaving brushes and use the income from brush sales to purchase new tools and equipment for increased enjoyment of your hobby, the income is not taxable. If you forge straight razors and use the income from razor sales to purchase a power hammer, the income is not taxable. If you sell off used shaving gear for less than your original purchase price, the income is not taxable. However, if you purchase old straight razors at estate sales, refurbish them and sell them at a profit, then that profit would be taxable as self-employment income.