Uh OH: TAX TIME!

[colossus]

In the throes of tax time here in the US. Which of my MA/VT brethren/sisthren received a 1099k from PayPal? How in the hell are you dealing with this shit? I had like 20k of sales but it was all stuff I bought (or traded for) for myself and decided I didn't want. But apparently I'm a business/sole proprietorship because I profited a bit here and there. UGH. What are the rest of you doing? Naturally I don't have receipts for everything because some shit I bought many years ago and other stuff I traded for. Seriously, how in the hell do you get COGS from a trade??? Fair market value??

[01010111]

That’s super scary, also, it’s probably the way things are going to start heading as other states pass similar laws...

[oldangelmidnight]

I got one, too. My wife takes care of tax stuff and she looked into it and figured out a way that it wasn't a problem. Something to do with it being sale of personal property not for a profit. I didn't come close to 20 thousand, though. I think if you paid more in total than you made, you don't need to report it.

[colossus]

My problem is that I ended up making profit of around $3k for the entire year (after doing hours and hours and hours of putting shit into excel spreadsheets). And I think profit automatically means business.

[JonnyAngle]

I suppose the only way is to keep every receipts on every trade/ buy/ sale and then you’d have to pay tax on profit or deduct the loss

[Gone Fission]

Deducting loss on flips in excess of income is probably a no-go for most of us. Look up "hobby loss" for info. Income from hobbies is included in income, though. Sorry.

[MEC]

I didn’t get a 1099 from PayPal but I did find out that I owe almost $25,000 in state & federal taxes!

[calfzilla]

I don't think Reverb/paypal will report you if you stay under $15K or $20K in sales. I know that is wholly unhelpful here, but might be good for the future...

[colossus]

They do in VT and MA if you have over 600 in sales, thus I figured this would apply to lots of folks here

[calfzilla]

They do in VT and MA if you have over 600 in sales, thus I figured this would apply to lots of folks here

Oh damn. $600? That's barely scratching the GAS itch...

[lordgalvar]

Time to go back to the CCCMO system.

(Carefully Conceal Cash Mail Order)

California Use Tax is a vague one. If you spent more than $1000 via mail/internet orders and did not pay CA sales tax, but intend to use the item in the state of California, you have to report sales tax. If you no longer have receipts or know what you paid...you get to use a table based on income. Things like Amazon make it weird. Private sales...like gear trades on here...do they count? Nobody knows! It's a law from 1935 and the state tax board admits it is vague. Don't know if other states have that.

I mostly think they do it to get the tax money on stuff like cars, large imports of building materials, and stuff like that. Anyway, it's something to look out for and it makes me look at businesses that advertise no sales tax (except in NJ) in a different light. But, from the business side, it sucks that CA wants every national business to collect CA sales tax (how would they even collect it?).

[D.o.S.]

They do in VT and MA if you have over 600 in sales, thus I figured this would apply to lots of folks here

Operating cost for using Reverb I guess.