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In case you have not heard, the IRS has new rules going into place on January 1, 2022 for online selling. Places that automatically process payments like EBAY, FACEBOOK MARKETPLACE, and others, are required to send in a 1099K IRS Form. This has always been the case, but the limit on proceeds used to be $20,000 dollars. They are lowing this to $600 dollars. If you do any selling whatsoever, you will want to keep receipts for what you buy, gas mileage, your tools you bought, or any other thing related to your motorcycle hobby, so you can use this to deduct. LOL. The idea is to tax you on any profit you made.

Here is a link for more info:

2022 changes to eBay and your 1099-K

and here is the summary paragraph from that page:


"Here’s what you need to know

  • Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales.
  • The new tax reporting requirement will impact your 2022 sales and taxes that you file in 2023—it will not apply to your 2021 sales and taxes that you file in 2022. Throughout 2022, look for updates from us that will help explain what’s changed and what you need to do next.
  • If you haven’t already given us your Social Security number (SSN) or Individual Tax Identification Number (ITIN), we’ll ask you to provide it once you reach $600 in sales.
  • No need to worry— you only pay taxes on profits. You won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 last year and then sold it on eBay today for $700, that $700 you made would generally not be subject to income tax.
  • While eBay is unable to give tax advice to our sellers, we want to help make dealing with taxes as easy as possible. Our goal is to help all sellers, casual or those selling as a business, with these new requirements."

 

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Dunno bout Usa...but here in Aus you need to declare all income....even a waiter needs to declare tips.....

So its not suprising that your Irs wants to fully tap into the ebay market...🤨
 

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...even a waiter needs to declare tips.....
And here, we pay waiters a good wage, so tips are NOT an expected thing or part of their normal pay packet. They are an extra given for exceptional service.
 

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The hospitality industry is beginning to expect tips here.

They wouldn't get one from me. It's not a culture we should explore.

There are lots of people here in part time minimum wage jobs in our groovy new gig economy other than hospitality workers.

None of these others are ever tipped.

It's a patch for one sector at the expense of the rest without addressing the low wages and underemployment that are the underlying factors
 

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And here, we pay waiters a good wage, so tips are NOT an expected thing or part of their normal pay packet. They are an extra given for exceptional service.
I'll tip for good (exceptional) service by a staff member (wait-person).
When overseas i'd also "tip" for honesty...for instance in some Asian countries there is a "2 tier price range for cabs"...one for locals and one for "tourists"...If a cabbie just runs the meter..and treats me like a "local" I'll tip a modest amount... (VS the 300% markup!)


Sorry for the thread-hijack....:rolleyes:
 

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A few considerations ..
1. Cash is king. Any face to face transactions can and should be cash anyway, which will also avoid the reporting. Selling a bike locally should be fine.
2. PayPal still allows "cash to a friend" option, which is not included.
3. BoA Zelle seems to be exempt.

Seems like the biggest impact will be selling parts via eBay, where cash doesn't work.

 

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Dunno bout Usa...but here in Aus you need to declare all income....even a waiter needs to declare tips.....

So its not suprising that your Irs wants to fully tap into the ebay market...🤨
Yep, supposed to be here, too. But somehow leaving it to the discretion of the people lead to low reporting…

True for cash too. It isn’t that you aren’t supposed to report a cash sale, just that there is often no documentation of it so it is ignored.
 
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