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Postby IWish on Wed May 02, 2018 3:04 pm

It boggles my mind how some folks think that the tax man is going to let 'em slide when it comes to paying income taxes. Especially for that amount $20K!. I mean...look at that small amount that I sold and I still had to pay income tax on that amount.
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Postby pvecchi on Wed May 02, 2018 3:28 pm

IWish wrote:It boggles my mind how some folks think that the tax man is going to let 'em slide when it comes to paying income taxes. Especially for that amount $20K!. I mean...look at that small amount that I sold and I still had to pay income tax on that amount.


I'm sure they are counting on not getting caught...but with everything / records moving to electronic formats if they ever do there will definitely be a trail.

My mother used to do audits and the threshold for sending notices was $100 in some discrepancy, so it isn't a lot like you said.

....most of the collectors are pretty good at tracking income. Many carry guns on them too. I wouldn't want to get on their bad side, that's for sure
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Postby jjttdw on Wed May 02, 2018 3:37 pm

pvecchi wrote:Codeblue is correct as usual. You won't get 1099'd until those thresholds are met, but you are still liable for reporting profits.
Basically it means if you want to sell, you should be maintaining an inventory and keeping track of purchases/sales/costs/receipts, ect.
Also (at least in my state) if you buy stuff for personal use you should be paying sales/use tax every year as well (unless the seller collects this tax for you)
My parents worked for the IRS so I've had it drilled into me to do these things, but my guess is most people here don't bother


If everyone paid what they owed the budget would be balanced. If the IRS wants to try to charge me for what I make on the sale of a poster then I will claim my collection as inventory and since I buy way more than I sell I will declare a loss every year.
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Postby IWish on Wed May 02, 2018 3:51 pm

pvecchi wrote:My mother used to do audits and the threshold for sending notices was $100 in some discrepancy, so it isn't a lot like you said.


I don't understand...? If you mean that they won't investigate prior years...well then, that's a good thing.

pvecchi wrote:....most of the collectors are pretty good at tracking income. Many carry guns on them too. I wouldn't want to get on their bad side, that's for sure


I'm not sure why you're bringing mention of guns into this. Whatsup' with that? Should I fear for my life because I mentioned...you know...the tax man, here? :lol:
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Postby ygolohcysp on Wed May 02, 2018 5:38 pm

Pay your taxes people, we live in a digital age. Just wait until the IRS gets some real tech people involved. You tax cheats that think you're off the hook because you didn't get a 1099k are all drymounted.
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Postby pvecchi on Wed May 02, 2018 5:54 pm

jjttdw wrote:
pvecchi wrote:Codeblue is correct as usual. You won't get 1099'd until those thresholds are met, but you are still liable for reporting profits.
Basically it means if you want to sell, you should be maintaining an inventory and keeping track of purchases/sales/costs/receipts, ect.
Also (at least in my state) if you buy stuff for personal use you should be paying sales/use tax every year as well (unless the seller collects this tax for you)
My parents worked for the IRS so I've had it drilled into me to do these things, but my guess is most people here don't bother


If everyone paid what they owed the budget would be balanced. If the IRS wants to try to charge me for what I make on the sale of a poster then I will claim my collection as inventory and since I buy way more than I sell I will declare a loss every year.


Lol good luck with that. You usually have to sell something to realize a loss or gain. You can’t just sell something for a $1000 profit, buy a $1000 poster for your wall and call it even. It’d be nice if you could though!
Last edited by pvecchi on Wed May 02, 2018 6:24 pm, edited 1 time in total.
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Postby pvecchi on Wed May 02, 2018 6:05 pm

IWish wrote:
pvecchi wrote:My mother used to do audits and the threshold for sending notices was $100 in some discrepancy, so it isn't a lot like you said.


I don't understand...? If you mean that they won't investigate prior years...well then, that's a good thing.

pvecchi wrote:....most of the collectors are pretty good at tracking income. Many carry guns on them too. I wouldn't want to get on their bad side, that's for sure


I'm not sure why you're bringing mention of guns into this. Whatsup' with that? Should I fear for my life because I mentioned...you know...the tax man, here? :lol:


If they audit you they’ll probably go back 7years....more if they suspect fraud. They aren’t even looking at this year’s returns unless there is some discrepancy (like a 1099 someone filed and you didn’t declare or something like that). The random audits are usually 2-3 years behind the current tax year.

The guns investigators and collectors carry are for their own protection. You may be surprised to hear that people can get a little upset if Uncle Sam gives them a bill or comes for property and other assets / businesses / homes. People here complain about $5 or a 2 day delay like it’s the end of the world. Lol ;-). I was just saying they are pretty serious and take their duties seriously.
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Postby IWish on Wed May 02, 2018 6:20 pm

pvecchi wrote: People here complain about $5


...in my case, $37. :lol: I know it's not much...just bad timing.

Thanks for the explanation. I understand now.
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Postby IWish on Wed May 02, 2018 6:35 pm

pvecchi wrote:
jjttdw wrote:If everyone paid what they owed the budget would be balanced. If the IRS wants to try to charge me for what I make on the sale of a poster then I will claim my collection as inventory and since I buy way more than I sell I will declare a loss every year.


Lol good luck with that. You usually have to sell something to realize a loss or gain. You can’t just sell something for a $1000 profit, buy a $1000 poster for your wall and call it even. It’d be nice if you could though!


In that scenario, they'd come and take your "inventory", (among other valuables), to satisfy your tax debt. Correct?

I think you have to be a legit business/manufacturer, that produces and sells a product, before you can claim losses.
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Postby bubbie on Wed May 02, 2018 7:14 pm

Inventory does not affect your income. It's a balance sheet account :P
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Postby pvecchi on Wed May 02, 2018 7:58 pm

bubbie wrote:Inventory does not affect your income. It's a balance sheet account :P


Yep. Only when you sell something can you realize a profit or loss.
It sucks but creating and maintaining an inventory is necessary to be on the up and up. Makes things easier

Like people have said though, odds are the underfunded IRS probably won’t go after you for selling a few things on eBay
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Postby DoubleDown on Sat May 05, 2018 5:40 pm

IWish wrote:
pvecchi wrote: People here complain about $5


...in my case, $37. :lol: I know it's not much...just bad timing.

Thanks for the explanation. I understand now.

:rolling:
You are just bad at life, aren’t you?
Maybe spend less time on message boards if you are having a tough time paying a $37 tax bill. Yikes...
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Postby IWish on Sat May 05, 2018 7:32 pm

I became disabled due to a recent illness.

DoubleDown, (obvious alt)...why don't you post under your real user name? Coward.

I'm done playing your little game.

Bye.
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Postby PLUSH on Sat May 05, 2018 10:31 pm

wtf toe variant. :shock: eBay 122961924238
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Postby mfaith on Sat May 05, 2018 10:35 pm

Ran out of box corners apparently :lol:
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