In reference to the new levels of sales of property @ over $600, does anyone know:

[Paper Roses]

Do any of you folks know to what entity organization or whatever where we can express a complaint? This is a great concern to me as I try to downsize my house and hopefully find an apartment. I'm not going to make any money, in fact I will lose but I have no receipts for 50 years of accumulation.

Who saves receipts for something they bought 20,30,40 years ago?
This new level is not fair to the general public. To businesses, it is obvious that records be kept.

To the rest of us???
To whom can we express our disgust? I'm in limbo now, I sold some kitchen stuff, a lawn spreader, a great lot of cat food, (Vet changed her diet) plus shipping some other small things like bed linens never opened, books and other miscellany. I have no idea how much I have sold. I don't want to go over $600, This is a PITA!

I understand there is a movement to repeal this rule. I'd like to put my 2 cents worth into the complaints.

[MichMan]

1. It was passed a year ago in March as part of the American Rescue Plan

Those in congress that voted for it would likely appreciate hearing feedback from their constituents. Best bet would be to contact yours.

[questionseverything]

2. Keep your shipping receipts , they are costs you can deduct

N/t

[Hoyt]

3. Estimate what you paid, that's what IRS will do if hey think you

are running a business, rather than just selling incidental stuff for a loss.

[Lettuce Be]

4. This only applies to the sales of new goods or used goods for profit not selling your belongings

There is no taxable event if you sell a used item for less than you paid to obtain it for instance. Sellers have always needed to report over $600 in sales but they didn't require the platforms to report it. Now they do.

It's meant to tax the sellers on Ebay and Etsy, etc. No matter what they do, no one is going to pay any taxes to the IRS for garage sales and whatnot. I'm not, and you shouldn't either.

Don't use apps for payment if you are worried, just ask for cash. Hope that helps ease your mind a bit.

[progree]

5. Selling Stuff Online? Taxes for Etsy, eBay, LetGo, and More

https://www.1040.com/blog/2019/7/12/selling-stuff-online-taxes-for-etsy-ebay-letgo-and-more/

My summary:

For someone getting rid of stuff, anything you sell for more than it cost should be reported on Schedule D, and it will be taxed at the capital gains rate.

If you do this as a business - buy stuff, restore it or whatever, and sell it for a profit, then it is a business issue reported on Schedule C.

It's not too helpful about the issue of proving you didn't make a profit or how much profit

Just keep saving your receipts, and if you don’t have them, collect proof of payment any other ways you can manage (bank statements, cost of items in prior years listed online, etc.).

Anyway, I thought a link to something would be more helpful than linkless assertions that might be no more than wishful thinking.

[Meowmee]

10. Who has receipts and proof of payment

for items purchased 20-30-40-50 years ago? For most items you don't have that anymore. And what if you are selling items from an estate etc. that someone else purchased but they now belong to you.

[hlthe2b]

6. If we can't increase estate taxes then why are they going after the little guy--who already paid tax

on the income used to buy those goods they seek to resell on ebay and likewise would have paid state and local sales taxes. As one who needs to (badly) downsize, I've got a hell of a lot of things I simply can't afford to give away.

I don't get this. I know there are some actual big businesses hiding under the skirts of small sellers, but is this the way to get them?

[Paper Roses]

7. Update on 1099-K if you are selling as an individual or dealer:

You may have seen my prior post about the new IRS rules about selling goods you own.
Since I'm trying to downsize for a potential move, this is important to me and may be to you.

First, I'm not a dealer and what I need to sell are household goods. Mostly furniture and decorative items. Maybe some small value items. I've had these things for 40 or more years.

Today I called my accountant to check the status of the new 1099-K rule. No change. Anything you sell over any on-line venue over $600.00(that includes all of them), you will receive a 1099-K form combined..

Over $600.00 is considered income. You'll get a 1099-K from the IRS. Since my stuff has been around here for years, I have no receipts. Who saves then after a while?
There is no way to prove what you paid. Since this is a down market, I will lose but I can't prove it because receipts are long gone.

Keep this in mind if you post on any on-line sales page. (combined)
I'm stuck. No receipts..can't sell any accumulation of over $600.00. Best to you if you want to sell anything. FB, eBay, or any of the other outlets.

[question everything]

13. When I list non cash donations on 1040 Itemized deductions and Turbotax guides me

one option is "goodwill estimation" - or something.

I don't think that the IRS will argue with an estimate on items from 30 years ago.

[hlthe2b]

16. Surely your accountant had some advice on this? Estimate of "capitol gains" on the items or

conversely depreciation?

[brush]

8. Have a DIY yard sale. Or hire someone to do an estate sale...

for you. Both ways are more direct and require no receipts. The estate sale people will do everything...tagging with prices, setting up with display tables, even taking care of removing things that don't sell if you want. They will take a percentage of the profits of course. Negotiate that figure with them. 15-25%.

If you go this route there's no dealing with the IRS and taxes. Makes it simpler and easier. And no shipping like online selling, which is another expense and much work.

[Meowmee]

9. Sell for cash only

On craigslist etc. and use it for daily expenses. As usual they are going after the middle and lower class mostly, we are ALWAYS the ones who get screwed in the words of a lawyer I got advice from about handling my father's estate. And not just in this arena.

[mahina]

11. Craigslist isn't where the buyers are though.

Craigslist is mostly folks looking for super cheapo cheapo stuff. But I can see the sense in what you’re saying if you have your market there. I don’t.

Thanks to the OP because I would never have found this out.

[Meowmee]

12. I have sold many things via craiglist

Some high priced items and recently medical equipment we purchased for my father's care. Also if you sell via ebay you can switch it to cash only after an auction if the buyer is ok with this. My ins agent actually told me a while back to sell my father's car for cash and not report the actual amount received wtf? This is the way people must operate a lot of the time to get by.

[mahina]

14. Not any more evidently w eBay reporting income though?

[Meowmee]

15. I am not sure what is going on there

People are trying to fight it because I keep receiving emails about that. Unfortunately I sold an expensive device for my father’s care on eBay so that may be recorded, I am not sure yet.

I don’t know what would’ve happened if I just told her to pay me in cash which she probably would’ve done. I could have cancelled the sale and received cash. But she was desperate to get it right away and I was having trouble getting the bank info set up so cash would have been easier.

Well it turned out that she actually knew of my father and we talked for quite a while. She was purchasing the device for someone who had recently had a stroke.

I have not had to add a social security number so I am wondering how they will keep track of it. But for that device if needed I can prove when it was purchased and for how much. It was a slight loss as I recall.