So I know there are at least several other addicts like me who check the classifieds here several times a day. If a high end bow pops up for sale that I haven’t shot yet I’ll buy it. If I love it I’ll keep it. I’ve got a Habu, TimberGhost and a couple Bushmen I’m probably never going to sell. If I like it, but the weight isn’t just right I’ll order a new build. Got a new Centaur last month. If a bow I buy off the classifieds here isn’t just right for me at my draw length or I can’t get perfect arrow flight I list it here and ALWAYS sell it at a loss. I figured the loss is just the price I pay to have tried a new bow and I’m fine with that. So let’s say I but a Centaur for $1,200. Keep it a month and then sell it for $1,000 (shipped). I’m down about $250-$275 depending on whether it’s a takedown or not. I’ve heard that this year any money received via PayPal $600 or more is reported as income. So now that $1,000 I received is taxed and I get half of that??? I buy and sell a dozen bows a year. Maybe I’ll just do trades from now on??

You don't get taxed for selling at a loss. You just have to prove it.

Talk to a tax professional about how taxes are figured if you don't have that information. You will get more misinformation here than good information. Any income is income, whether reported or not, and Paypal, is pressured/required by the fed to report to them. It's your federal government that makes the rules on taxes, not Paypal.

Bootaka is spot on, tax is on profit but records must be kept.

Yea , stinks when you’re trying to sell stuff you’ve had for years., who ever kept receipts for anything you bought used anyway?

You won't get taxed anything that is considered a profit so a loss just has to be verified by providing a cost basis in excess of what you sold something for ; requires filing the appropriate schedules and having tha paper work to back it up.

However , depending on your State , county or municipality , you may be liable for gross receipts tax(sales tax) on ALL sales regardless of whether you realized a profit or loss! In addition , paying that sales tax may require you to have/acquire a business license and require future sales tax filings on a monthly or semi annual basis. Welcome to the Inflation Reduction Act.

You won't make any money buying and selling high end traditional bows, don't worry about the profits...watch the loss.

Income is any money received on a regular basis whether that no eye is generated through labor, investments, rent, or anything else.

Income tax is easy to remove by showing something sold for a loss but , if you live in a sales tax area , you could well be liable for that tax regardless of profit or loss because it is a sold item(s) they now have a record of. In my area if I sold a $1000 bow I would be liable for $78 in sales tax.

A lot of online sales companies are being forced to do this. I sold a resonator guitar on Reverb last year. I paid around 4K for it a few years ago and sold it for around $3500. Reverb sent me a 1099 to report my $3500 sales income, less Reverb's consignment commission.

When I filed my taxes I had to prove to my accountant that I sold it at a loss, viz, did not make any profit on my sale. Thankfully I kept my original receipt in the case.

Our government would love to tax us on our losses but thus far it hasn't found a way in which to do so. Yet.

Right. Any transaction over $600 on PayPal will result in the reporting of that transaction to the IRS as income you received. That’s new for 2022. PayPal will send a 1099 form to you. If I were a business I’d keep records, but just buttoning and selling as a hobby I don’t bother with records or receipts. Lesson learned.

It isn't unique to Papal, and the responsibility to report income isn't new or unique either.

Every 3rd party money handled should be doing the same thing. And I/we have always had a respinsibility to report the income, but most didn't and the dollar amount and number of transaction thresholds was much higher before.

This concept isn't as new as folks try to make it seem.

I think the point is that until very recently it wasn’t reported as income by PayPal or Ebay. Now just to sell a few things you’ve had for years and the government wants to make sure they get some too. I can understand reporting on new item sales because many people run business on there.

That’s why you Buy High, Sell Low, and make it up in Volume..

Been working for me for years.. Bankruptcy is a Beautiful thing the Government has invented..

Pay the man

Please correct me if I'm wrong - as long as you keep any sale under $600 PP doesn't send you a 1099? Is that per sale or for the entire year the $600? If you use the FF function to accept payment on PP is it the same for $600+? Asking for a friend...

Or ask for 2-4 payments spread out to keep it under $600

Besides PayPal, Banks are now reporting cash movements below the $10,000 threshold also. Do some quick research on the notice banks are now required to do.

started to fight organized crime and money laundering. Now it’s to get every nickel to pay for the inflation reduction act. And build back better plans.

Even though Biden promised not to raise taxes on low and middle income people. I’m pretty sure we all knew it was a lie.

The threshold is $600.00 total, not per transaction. That means that if you sell a TOTAL of $600.00 worth of goods or services on ANY platform that platform will report those sales to the IRS on form 1099-K and provide you with a copy.

The threshold used to have a minimum transaction component of 200 as well as a higher maximum sales component $20,000.00 before the money handlers were required to report.

Looks like a lot of people are going to dodge a bullet this year on the 1099k paypal/venmo regs from the recent legislation

https://www.foxbusiness.com/money/irs-delays-new-tax-reporting-rule-venmo-paypal-payments

If there’s a paper trail they got you. Cash is still king. But they are trying very hard to get rid of it. Like plastic money credit and debit cards. Maybe even this new cryptocurrency. Then they will be able to track every cent. I guess trading is still a good way to go. No tax on that yet.

If you pay $800 for a bow a sell it on eBay for $650 it's a loss, not a gain.

,,,,then they will be able to track every cent,,,, no,, they will be able to control every cent.

"If you pay $800 for a bow a sell it on eBay for $650 it's a loss, not a gain." ,,,,yes , but it could also set you up for sales tax on the $650 sale depending on State and conditions you can document.

Be nice if they could just leave a guy alone.

I would suggest a TT transfer then. Fast and easy, you just need a bank name and account number.

We can trade. Are you send money order, are cashier check. If I know you are you have been here along time I would do the same. The gov. Gets enough of my money.

If a hobby item is bought new taxes are paid then/there. If I sell it used it's none of the Governments business IMO.

The issue for me is not that I can show a loss to avoid paying taxes. The issue is even having to go through the hassle of doing all this on my taxes because of casual hobby sales.

The majority of people in the USA voted for for Biden. So we have to live with whatever he and the Democrats want. He signed a bill last March to go to digital currency in the USA. So we won't even have to carry or send cash! That will make trading easier.

The reporting was NEVER intended to have any effect on the selling/trading of personal property, which is what most of the transactions that are being discussed here are.

Good news is we dodged the bullet this year. It seems as if it can/will be a problem next year. I know I’ll keep that in mind when making transactions in the future. Merry Christmas everyone.

"He signed a bill last March to go to digital currency in the USA."

No.....he didn't. He signed an Executive Order #14067 to explore the feasibility (risks and benefits) of a crypto based currency system.

Like most things this stuff is all public record if you want to actually do some research on it before you start saying silly stuff.

Most people don’t use cash anymore.

The thing to remember is that the burden of proof is on YOU. Good luck proving you sold that bow, guitar, etc... for less than the purchase price. As usual, these measures are sold as "going after muh bad guys", but in practice are designed to further squeeze the pockets of us poors just trying to get ahead.

You (or your tax professional) makes 2 different entries on your tax return. 1 is the income from sales of personal property, the 2nd is cost of personal items reported. The 2 entries should offset each other so there is -0- income to report.

It REALLY isn't that hard.

Have to pay your taxes.

Bottom line is that it allows the government to intrude more fully into your life , may make you liable for sales taxes on ALL online payments you receive , will complicate your record keeping and increase the cost of your tax preparations.

"will complicate your record keeping"...now how many people sell a bow without knowing exactly how much they paid for it originally?

"allows the government to intrude more fully into your life" folks don't seem to realize that ALL of this information has been readily available to the government for MANY years. All they had to do was ask for it.

With all the online buying going on collecting tax on your sales will make it easy for the IRS to collect there tax .All paypal needs to do send the IRS a copy of you sales .As far as what you paid originally they already taxed that. We have had tax on tax for years nothing new here .

Just saw this morning’s news that Biden Admin is putting a hold on the $600 limit.

fdp, but PayPal, etc don’t know if we are selling personal property!

How do we prove that?

It's not like income reporting requirements have changed. You are responsible to report profits as income, if there are any.

Kelly, PayPal has no obligation to interpret what we are selling. Not have they ever had that obligation. The only obligation they have is to report transactions and amounts above a certain threshold. Just like always. The difference now is the threshold is lower.

A personal statement is all that's required. Follow the guidance of your tax professional for that.

I never sold archery equipment as a business on-line. My buying was for bows I wanted to try and selling bows I was done with so I could fund another. Some of those bows were pricey but I seldom made money and usually lost some. But it was still an affordable and fun hobby. I have quit doing that because between the cost of shipping and now the taxation, it simply isn't worth the hassle. The Progressive squeeze on freedom marches on.

There is no implied taxation. That's the piece of this that seems to be confusing folks.

This digital BS will have some interesting consequences. The return of the previous international currency,lol.

Say what you want, it's all chin music. The bottom line is that these new laws are designed for further taxation as an attempt to not only raise revenue for a tax-and-spend, big government but, also to coincide with the move to digital currency in order to close any possibility that such transactions, and the resulting taxation, cannot be evaded easily, if at all. It's more government control where it is not needed, and it should not be present. Continue to downplay this - you may as well play in the band while the ship takes on water.

Yes. Ebay is doing the same thing. Can't escape big brother

People's blood pressure would lessen greatly if they would take the time to read and understand FDP's posts above BEFORE getting worked up. While pretty much everyone would prefer less oversite, this is really not that big a thing. And just some basic record keeping makes it a nonissue for hobbyists.

SteveBNY , here is the quick guide as to what items are exempt from SALES TAX in your State.

https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/quick_reference_guide_for_taxable_and_exempt_property_and_services.htm

When the State CRS people pick up the 1099k amount from your Schedule C and see that you have not paid the corresponding sales tax you are going to get a notice from them and most likely a penalty. Big Apple residents will be tapped for 8.875% and archery items will not be exempt ,nor will most other items of "tangible personal property". Everyone seems to ignore the sales tax implications involved and that tax will be levied on the TOTAL sales of the amount of the above mention property REGARDLESS of whether there is a profit or loss.

Same taxes that have been due for years. Nothing new other than one will actually have to pay them. And the bulk of this conversation has not been about the potential for sales tax collection.

Big brother watching and controlling. Biden bucks will make use a puppet. This is just the begining of controll.

The bulk of the conversation SHOULD be about sales tax , that's the real buggaboo in the stupid law to begin with. That is why the Dems that passed it without reading it have postponed implementing it for a year as a result of all the egg on their faces. Most of the bows and such that are sold on here would probably show a net loss so, even though it's now going to be a PITA to prove it , the income tax is irrelevant but paying sales tax on anything and everything you receive is not. All it will do is drive people to do more trading , money orders and stifle potential transactions and actually cost the FEDS funding in the long run.

Who cares about a tax with PP, and ebay, Craigs list and all that other BS. That's not what the problem is. The problem is the push for being cashless. then I'll have to get an $800 I/Smart or whatever phone in order to buy a doz. fresh eggs from the Amish for $1.50 Then the problem will be they're not going to have the f(&*)*( phone anyway so I'll have to trade for a doz fresh eggs.

'Coarse I'll have to limit how much and where I'm having too much fun and watch my spending so I don't go over my monthly allowance "chit limit", because they know better than me.

Right now we've got 25+ between staff and residents with the c19 or whatever they're calling it this month at work, working some overtime and I might just treat myself to 3 doz. DF shafts. Once we go cashless, I might not get that "luxury spending" option. Who gives a dang about a tax on PP, there are bigger problems ahead.

I usually buy, sell and trade used bows/equip. If any thing over $600 sold I guess I would need to prove I bought higher for the loss. Then thank the IRS for the deduction. One of the more corrupt government groups. I do not invite A-holes for dinner so why let them in my head? So back to distancing myself from the Government....................

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