Bartertown.com

USA tax law stuff... yay...

So, I just became aware of something that will probably impact a lot of us and I'm starting to look into the ramifications, but I'm wondering if anyone else has already done some research.

Currently for companies like ebay or paypal to generate a form 1099-K someone would have to do $20,000+ in gross sales AND 200+ transactions in the year. Starting in 2022 those numbers will change to $600+ in gross sales for any number of transactions.

Given the cost of selling armies, a lot of us will find ourselves with a form 1099-K that needs to be addressed when we go to file our taxes for 2022. From what I've read it shouldn't necessarily mean you'll need to pay taxes on the 1099-K amount (selling at a loss?), but I think you need to address it somehow.

Well, I don't know about the change to the $ amount, but I have a friend who decided to clean out his (immense and display-level painted) collection of armies.
He hit the limit near the end of 2020, and hit it again in Feb or March of this year, so he stopped.
He COULD sell more, but doesn't want the 1099-K.

I did a quick Google search on it. Here's an eBay community thread:
https://community.ebay.com/t5/Selling/W ... p/31684572

At least one person makes a point that "hobby" sales won't be impacted.
However, if you're selling in excess of $20k a year in used models, it'll be difficult to convince the government that it's TRULY just a hobby.
I'd wager that you can see a lot of leniency for sales that don't get gross.

I think B-Town needs a new tagline:
Bartertown
"Where we don't issue you a 1099-k."

Eric

That's actually how I brought my business to true business status.

Is being a true business worth the hassle of more complicated taxes?

bbb wrote: ↑

Thu Sep 23, 2021 1:47 am

Is being a true business worth the hassle of more complicated taxes?

Yes and no. If you're going to do the business and increase sales, you're going to have to pay the taxes. That being said, it isn't that much more complicated up to a certain level. Up until 2022, I've just used Quickbooks Self Employed and it's fine.