IRS Announces Big Changes To Form 1099-K, Including Another Reporting Delay

[CountAllVotes]

Christmas came early (again) this year for many taxpayers and tax professionals. The IRS has announced that it would (again) delay the new $600 Form 1099-K reporting threshold for third-party settlement organizations.

Here's what you need to know.

The IRS will treat 2023 as an additional transition year. If that sounds familiar, the same thing happened last year when the agency announced that the 2022 tax year would be considered a transition period. Third-party settlement organizations were not required to report tax year 2022 transactions on Form 1099-K to the IRS or the payee for the lower $600 threshold amount—the existing $20,000/200 transaction threshold remained in effect through year-end.

https://www.msn.com/en-us/money/taxes/irs-announces-big-changes-to-form-1099-k-including-another-reporting-delay/ar-AA1kj66e

Seems some of us are off the hook for sales if we didn't have many like I did.

What a relief!

I cannot understand why I would have had to pay taxes on something I sold this year that I already paid taxes on anyway.

I won't be doing anymore selling on ebay anyway as I have nothing much left to sell.

Good move by the IRS right before Xmas time isn't it?

[Paper Roses]

1. I hope they continue to delay this requirement beyond 2023.

I'm not in the resale business but must downsize what I have and prepare for a move if I can find an affordable apartment. I will lose my shirt under any circumstance since my late husband and I furnished our house with formal, some antique furniture in the 1970's and 1980's..
In my neck of the woods, what you paid ,..say...$2000 for an inlaid dining room table would probably sell for $200. There you are! I would take a big loss and have to pay taxes on it if I sold other furniture and antique items.
Like many others, we will have to pay a tax. My stuff..mostly formal mahogany period and Centennial furniture has no market now. I don't even count the collectibles that I'd be lucky to find someone to pay anything for.
Take into consideration that I(and others) have no receipts. Who saves old receipts?
Meanwhile, the rich get richer...I won't post my thoughts on that subject.

[CountAllVotes]

2. I hear you!

I have a lot of old mahogany furniture as well (c. 1950 or so). It belonged to my parents and they are both gone now and I have it.

I also have a solid mahogany desk that must be moved with piano belts. I moved it from San Francisco to where I am now. It is so heavy! I don't
know who would ever buy it.

As for ebay.com, I think their sales are lagging badly. With this tax law hanging over people's heads, a lot of sellers have just given up and walked away.

Best of luck finding homes for your old furniture!

[Bludogdem]

3. It's taxable

Only if the sale of the item exceeds what you paid, yielding a profit.

[MichMan]

4. How the hell can someone prove what they paid for something bought in 1987?

[bucolic_frolic]

5. They make this whole thing so complicated

They should just issue a gross revenue form, deduct 40% for shipping and expenses, subtract any provable basis with receipts, and tax what's left.

Maybe for people above $20k sales keep the existing system.

Most online sellers are little more than hobbyists who sell the junk that's gone through their lives at fire sale prices. They're trying to get blood from a stone.

[MichMan]

6. How long can the IRS keep delaying tax laws from taking effect ?

I don't like the $600 law either, but it was passed by Congress in early 2021 as part of the American Rescue Plan, and signed by President Biden. Could they also refuse to implement a billionaire's tax for years?