Taxes on BST sales

Don't use PayPal.

This is ridiculous. Maybe the government should start working about spending less instead of trying to get money from the sale of personal shaving goods.

I agree, the new reporting standards are not reasonable, but aparantly its what the majority of US citizens wanted.  I had some things I wanted to sell this year too but I am going to be more selective about it now.

Don't use PayPal.

Or don’t sell anything where it needs to be shipped.

I was wondering when this would start becoming an issue, this was due to the recently enacted "American Rescue Plan" act signed 2 years ago.  It was supposed to take affect last year but they postponed it.  It was always supposed to be taxed, now they are making the payment platforms report it.

Here is an excert from an article.

"Before 2022, third-party transactions for business owners and side hustlers followed different thresholds: individuals needed to report gross payments exceeding $20,000 and report earnings if they had more than 200 such transactions, according to the IRS. But as a result of the American Rescue Plan Act, any transactions made after March 11, 2021 that exceed $600 must be reported to the IRS, regardless of how many of those transactions you’ve had.

These earnings were already taxable so this is not a change in tax law, but rather just a reporting change."

That is interesting Itsallgravy … just a reporting change, not a change in tax law. Thanks

My guess is that the reporting change will cost more in additional IRS agents than it will bring in.

I believe the $600 IRS rule is for businesses not personal. Also it doesn't cover FF transactions.

I believe the $600 IRS rule is for businesses not personal. Also it doesn't cover FF transactions.

Which I'll repeat since you brought it up is against their terms and not allowed here so a moot point.

I believe the $600 IRS rule is for businesses not personal. Also it doesn't cover FF transactions.

Which I'll repeat since you brought it up is against there terms and not allowed here so a mute point.

What are you talking about?

Can you break up a transaction into multiple sub $600 ones and not pay this ridiculous tax?

Of course you can if the buyer agrees to it.

I believe the $600 IRS rule is for businesses not personal. Also it doesn't cover FF transactions.

Which I'll repeat since you brought it up is against there terms and not allowed here so a mute point.

What are you talking about?

I'm sure it was not your intention to encourage this. But people are talking about how to limit their exposure to the tax. Friends and family transactions are not allowed on the Forum and so I was just restating the rules so that we don't feel that that is an option although it would be great. I understand that you were probably referring to off forum sales and using friends and family.

I believe the $600 IRS rule is for businesses not personal. Also it doesn't cover FF transactions.

Which I'll repeat since you brought it up is against there terms and not allowed here so a mute point.

And maybe even a moot one