I stand corrected ("Accept only PayPal Friends/Family) - if the individual you are selling to is a stranger and you cannot establish they are truly a friend or family member - this may not protect you against not having to pay tax on any profit you may make. IRS is aware of how individual sellers may try to 'skirt' their tax obligation by using this method, so best to avoid PayPal completely and do a traditional transfer of monies using traditional methods -? cash/check/MO. Zelle is an interbank cash transfer method that so far, is not being reported to IRS (subject to change in the future, but as of right now, Zelle is not reporting cash transactions to IRS).?
Bob K3AC
In a message dated 9/22/2022 11:00:58 AM Eastern Standard Time, k3ac@... writes:
?
Just avoid using PayPal (receiving payment 'as merchandise'). Accept only PP? F/F cash transfers, or require payment by check/MO/interbank. For now at least, you should be able to avoid this issue entirely. Why I posted this to begin with. I'm ending my thread here as it's a bit off topic for this group but I wanted to get this information out as PayPal is now notifying individuals accepting payments for merchandise about their new 1099 policy.
?
Bob K3AC
In a message dated 9/22/2022 10:55:56 AM Eastern Standard Time, johnk5mo@... writes:
?
"Unless ham radio is a business and you are actually making a profit on sales, then perhaps you should treat it as a business"
?
So what the IRS has created is a situation where you're presumed to be in a business, even though one is NOT in a business. I have an extensive 40 yr collection of gear.? Of course I didn't keep a log of my cost basis because 99% of this equipment came from hamfests/garage sales, etc where no such thing is routinely given.? But with the IRS one is guilty until proven innocent.
?
Hobbies (ALL hobbies) involve a great deal of buying and selling, and the $600 bar is set low enough to trigger most everyone into treating their hobby as a business, which it clearly isn't .
?
Of course the very wealthy have accountants who structure wealth in such a way to avoid taxes, the poor pay none, and the middle class will bear the burden of 75,000 new IRS agents.
?
As always.
?
John K5MO
?
?
?
?
?
?
On Thu, Sep 22, 2022 at 10:19 AM Robert Kembel < rwkembel@...> wrote:
Hi all,
?
Not sure I see the relevance of the discussion regarding the IRS as far as Hallicrafters radios. Unless you are cheating on your taxes, I don't see how additional IRS agents is likely to affect the majority of honest people. Unless ham radio is a business and you are actually making a profit on sales, then perhaps you should treat it as a business and report the income (and expenses on a Schedule C form). This allows you to deduct 'business' related expenses such as the acquisition costs, supplies, and other expenses. I would venture that most of us spend more on our "hobby business" than we make as income. I know that I spend much more on my hobby than anything I might get by selling the occasional restored radio. Yes it is a nuisance to treat your hobby as a business (if you are selling items), but it is nice to be able to offset that income with acquisition costs, test equipment, supplies (wire, solder, caps, resistors, tubes, mileage, hamfest admissions, etc).
?
On the other hand, we are all subsidizing those that don't pay their fair share of taxes.
?
"The IRS is woefully understaffed and will miss about $600 billion in uncollected taxes this year as it grapples with technology built before humans landed on the moon, according to Deputy Treasury Department Secretary Wally Adeyemo."
?
Those missed taxes work out to about $2000 per individual that we are all paying to subsidize those uncollected taxes. Nobody likes taxes, but since they are a fact of life, the least we can do is make sure that everyone pays their fair share.
?
Bob,? K7DYB
?
On 9/22/2022 9:28 AM, Larry Steeno wrote:
I wonder if the newly minted IRS agents will be posted at all the local ham fests and garage sales????
Larry
?
?
?
|
