Massachusetts and Vermont Residents 1099 Fears Realized

[wantonebad]

And from what I've read other states are to follow!!

If you sell more than $600 online, and receive that income through PayPal you are getting a 1099 for that money and have to account for that income on your tax return. It's new this year for MA and VT and other states are going to institute this next year so keep this in mind!!

I had no idea and now I have to account for $7000 for two watch sales I had, god I love tax season!!

[wiswrist]

Was it a $7,000 gain? Just because you sold something, doesn't mean you have to pay tax on it on the total sale price or cash received. What did you buy those two watches for (your basis)?

[wantonebad]

Originally Posted by rac10000

Was it a $7,000 gain? Just because you sold something, doesn't mean you have to pay tax on it on the total sale price or cash received. What did you buy those two watches for (your basis)?

Yeah I took a loss and will be able to adjust my expenses to counteract the income but I wanted to get the warning out there because this came out of the blue with no warning!

[crew]

Hey Marc, good info.
Thanks for sharing.
I can guarantee that other states will soon follow. I’m surprised NY didn’t get on it already.

[GradyPhilpott]

Ebay is switching from Paypal to Adyen. I don't know if that affects this policy.

https://www.recode.net/2018/1/31/169...ents-agreement

https://www.cnbc.com/2018/01/31/ebay...ing-adyen.html

[Pix]

Also needed to collect sales tax and report that besides the new income.

[dddrees]

For the average guy or gal not in it for personal items and not for business that really sucks.

[wantonebad]

Originally Posted by dddrees

For the average guy or gal not in it for personal items and not for business that really sucks.

<------BINGO!!!! That's me LOL!!

[dddrees]

Originally Posted by wantonebad

<------BINGO!!!! That's me LOL!!

Well I’ve done it on occasion as well. It wasn’t watches but it did help me cleanup another hobby I have. I’ve always considered it a good means should I ever need it again, maybe not so much now. Thanks for posting the warning.

[wiswrist]

Originally Posted by wantonebad

Yeah I took a loss and will be able to adjust my expenses to counteract the income but I wanted to get the warning out there because this came out of the blue with no warning!

... I guess it could be considered an upside to never making money when I flip my watches

Unfortunately, stuff like this is only going to become more common.

[cruise_bone]

Originally Posted by wantonebad

<------BINGO!!!! That's me LOL!!

You can still offset the sale of the watch with basis up to the point of zero income.
You can't take a loss on the sale of personal items but you need not include the gross sales as income either.

When you receive a 1099 you must report the income on your return somewhere, or you are simply asking the IRS to send you a Love letter.
BUT, you can back out the cost so that the net income to you is zero.

PM if you want to discuss details.

[Flyinghunter]

“All within the state, nothing outside the state, nothing against the state.” -

This famous line is from Benito Mussolini.

[Maybelline]

How else would a state like Mass pay for all of their bs if they didn’t invent new taxes every once in a while.

[Valenciawatchrepair]

Ugh this will suck for me. Need to keep better records. When I help someone out selling their watch and it's run through my PayPal(tens of thousands of $$$), this could get messy.

Sent from my Moto G (5) Plus using Tapatalk

[wantonebad]

Originally Posted by GradyPhilpott

Ebay is switching from Paypal to Adyen. I don't know if that affects this policy.

https://www.recode.net/2018/1/31/169...ents-agreement

https://www.cnbc.com/2018/01/31/ebay...ing-adyen.html

Thanks for this Grady, good info!!

[GradyPhilpott]

Originally Posted by wantonebad

Thanks for this Grady, good info!!

[Knappo 1307]

Originally Posted by rac10000

Was it a $7,000 gain? Just because you sold something, doesn't mean you have to pay tax on it on the total sale price or cash received. What did you buy those two watches for (your basis)?

Hey Marc, I think this is the key. You have to pay on the gains, not on 7K. Is that correct?

[The Libertine]

Originally Posted by Maybelline

How else would a state like Mass pay for all of their bs if they didn’t invent new taxes every once in a while.

No kidding! Still can’t get over the friggin’ excise tax, because they certainly aren’t putting the funds towards improving the roads!!

[Maybelline]

Originally Posted by The Libertine

No kidding! Still can’t get over the friggin’ excise tax, because they certainly aren’t putting the funds towards improving the roads!!

Eventually I will move out of this shithole.

[The Libertine]

Originally Posted by Maybelline

Eventually I will move out of this shithole.

[dmac001]

Don't forget to include any costs of service, repair, cleaning, postage.... along with your purchase price. Receipts would be good to keep.

[brandrea]

Lots of revenue at stake ... no surprise the government wants its cut. Now it’s easier than ever to track.

[Reddy_Kilowatt]

Originally Posted by Maybelline

How else would a state like Mass pay for all of their bs if they didn’t invent new taxes every once in a while.

What new tax was implemented?

[Abdullah71601]

Originally Posted by The Libertine

No kidding! Still can’t get over the friggin’ excise tax, because they certainly aren’t putting the funds towards improving the roads!!

They are improving someone’s road, just not any near you. What do the streets look like near your congressman’s house?