vp999
Omono
Bill called a masterful game last night, I am very impressed with the Pats this year. Sadly I am a Saints fan since I am from Nawlin’ originally…. Bad year for us lol.
Internet Sellers, Be Aware of Tax Laws
- Thread starter penumbra
- Start date
penumbra
Imperial Masterpiece
No business accounts at all, only individual. This is the complete email from Etsy. It copied in a strange format. Some info would not copy but it clearly stated I was an individual seller and that unless I give them a tax ID # I will no longer be on Etsy. If you haven't gotten one you will soon. eBay tends to drag its feet more.
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vp999
Omono
Thank you for sir!
Bonsai Nut
Nuttier than your average Nut
Tell me about it 
I started filing taxes for the web site several years ago when Google ads started reporting ad revenue to the IRS. At that point I had already sunk $20K into the site, and had never reported a "loss" because I considered it a hobby, not a business. Well, not according to the IRS. It is now going to start costing them money, because I am now writing off expenses instead of just swallowing them... because they are forcing me to.
Ah, government...
I started filing taxes for the web site several years ago when Google ads started reporting ad revenue to the IRS. At that point I had already sunk $20K into the site, and had never reported a "loss" because I considered it a hobby, not a business. Well, not according to the IRS. It is now going to start costing them money, because I am now writing off expenses instead of just swallowing them... because they are forcing me to.
Ah, government...
Pitoon
Imperial Masterpiece
The idea of $600 was originally for bank accounts. But there was an uproar with the banks saying it will cause additional work to do all the paperwork. So apparently they written the law to include any account with movement of $600.
What I see in the forth coming future is all these companies raising their fees to cover the additional cost now to track and report. As well as mail out the 1099's. It will trickle down wait and see.
What I see in the forth coming future is all these companies raising their fees to cover the additional cost now to track and report. As well as mail out the 1099's. It will trickle down wait and see.
penumbra
Imperial Masterpiece
This is precisely the case and why I guess I might start a business up again next year. If you are clever and have a good tax accountant, you can write off so much. I did it for almost 40 years and paid almost nothing in adjusted income. The government paid for all my vacations, paid off my vehicles, paid me rent for part of the house and about half my utilities.Tell me about it
I started filing taxes for the web site several years ago when Google ads started reporting ad revenue to the IRS. At that point I had already sunk $20K into the site, and had never reported a "loss" because I considered it a hobby, not a business. Well, not according to the IRS. It is now going to start costing them money, because I am now writing off expenses instead of just swallowing them... because they are forcing me to.
Ah, government...
Now that I am retired I was so glad to not have to screw around with all of the paperwork for the past few years. But it looks like they are going to draw me back in so I can offset every penny of my income with deductions. I don't want to but if I want to continue making pots I might have to.
To be clear, if you have a money making Hobby, you are expected to pay taxes but are not allowed any deductions. If you have a business, you can find an amazing number of things that you can legally write off and may not have to pay any taxes at all. The old rule was to show a profit every third year ( some say one year out of 5) but I can tell you I ran a Gallery for 8 years and paid zero income taxes. It also paid for a lot of travel and motels.
But they just won't stop screwing with you so what else can you do? Get cash while you still can.
Bonsai Nut
Nuttier than your average Nut
Well, after being involved in a lawsuit, and having several conversations with the Orange County District Attorney's office, I can tell you that unless you're talking at least $100K, the government doesn't have the resources to pursue it. That's why the $600 limit is so weird. Last year the Federal Government spent $9,500 per person MORE than they brought in via all revenue sources. Do they think a bunch of Etsy sellers is going to be the difference maker? You'd need to be doing $30,000 annually in hidden Etsy sales just to break even on the Federal Government's deficit spending, LOL
penumbra
Imperial Masterpiece
Gr8tfuldad
Chumono
Vampires are real.
Gr8tfuldad
Chumono
Secondly, it is my belief that crypto is the precursor towards digital currencies. There will not be anything they can’t see soon.
penumbra
Imperial Masterpiece
No question about it. 1984 is coming, its just a little late.
penumbra
Imperial Masterpiece
You would think the government would use real accountants. I mean, who the hell makes these decisions. We know of course that congress is immune to it all.
Pitoon
Imperial Masterpiece
You know I knew one day I would register my LLC. I just didn't think I would be forced to do it this way and so soon. I don't see it as a bad think really. Now I can get all the things I need to move forward.
Mini tractor.....tax write off
Bulk nursery pots.... .tax write off
Substrates......tax write off
Clay......tax write off
Glazes.......tax write off
Business travel......tax write off
Business meals.......tax write off.
If I'm going to get taxed for what I'm doing now, might as well go legit to reap the benefits of running a business.
Mini tractor.....tax write off
Bulk nursery pots.... .tax write off
Substrates......tax write off
Clay......tax write off
Glazes.......tax write off
Business travel......tax write off
Business meals.......tax write off.
If I'm going to get taxed for what I'm doing now, might as well go legit to reap the benefits of running a business.
penumbra
Imperial Masterpiece
Well, I thought it was over with. I had an LLC landscape service and a sole proprietorship for over 30 years and thought it was over with. I guess I will have to sign up again. I really hated the paperwork, especially the monthly sales tax, but I may have no choice.
Pitoon
Imperial Masterpiece
HorseloverFat
Squarepants with Conkers
Yeah... it’s already here..
We all have “Parlor Families”.. (Ray Bradbury)
All news and messaging takes places on handheld electronic screens.. (called VidPapes And VidPhones by Philip K Dick)..
The “future” is here.
shinmai
Chumono
A few observations from one who works in financial services….
Unless you make more than a million dollars a year, or have deductions that reduce your AGI to at or near zero, your chances of an IRS audit are virtually zero. The IRS is ridiculously underfunded and understaffed, and way behind on modernizing their computer systems. As of last month, they are sitting on a backlog of 2.7 million amended 1040’s. The vast majority of individual returns are scanned by computer, and refund checks are generated automatically unless there is an obvious error or a number that really stands out. It may not even be reviewed by a human until three or four years later, if at all. This situation is what makes it possible for identity thieves to file a bogus return in your name before you do, and divert the refund into a bank account. We had a gang here who got caught after they did 400 fake returns, diverting hundreds of thousands of dollars.
That being said, who you really have to watch out for is your state’s department of revenue. They typically are much better staffed and funded than the Feds, and pay a lot more attention to small or micro businesses. You can take all your legitimate business deductions but those are the folks who will nail you if you try to be too clever and/or aggressive.
Unless you make more than a million dollars a year, or have deductions that reduce your AGI to at or near zero, your chances of an IRS audit are virtually zero. The IRS is ridiculously underfunded and understaffed, and way behind on modernizing their computer systems. As of last month, they are sitting on a backlog of 2.7 million amended 1040’s. The vast majority of individual returns are scanned by computer, and refund checks are generated automatically unless there is an obvious error or a number that really stands out. It may not even be reviewed by a human until three or four years later, if at all. This situation is what makes it possible for identity thieves to file a bogus return in your name before you do, and divert the refund into a bank account. We had a gang here who got caught after they did 400 fake returns, diverting hundreds of thousands of dollars.
That being said, who you really have to watch out for is your state’s department of revenue. They typically are much better staffed and funded than the Feds, and pay a lot more attention to small or micro businesses. You can take all your legitimate business deductions but those are the folks who will nail you if you try to be too clever and/or aggressive.
penumbra
Imperial Masterpiece
All true and all good stuff but be aware the IRS is hiring 2,500 new auditors Now.
And you will be getting 1099s from every entity that handles more than $600 sales for you. This is not something you can ignore.
Also, the number two reason for an audit of a business is something called Simplicity & Accessibility. That basically means that if you keep sloppy records, even if they are right, you are more likely to have an auditor knocking at your door. That seldom ends well.
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BrierPatch
Mame
Here is a fairly good explanation from Forbes.com on the tax law / reporting of taxes if interested.
https://www.forbes.com/advisor/taxes/cash-apps-to-report-payments-of-600-or-more/
https://www.forbes.com/advisor/taxes/cash-apps-to-report-payments-of-600-or-more/
bonsaidave
Shohin
Time to pay your fair share peasants.
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