Quote:
Originally Posted by bthomas515
Do you plan to show purchase history for stuff you’ve bought used?
|
If needed, sure. Below posts covered my thoughts pretty well already.
Quote:
Originally Posted by prototoast
He's probably not planning on being audited, because only an extremely small portion of taxpayers are audited, but assuming he were, if you buy and sell most things online, it's not terribly hard to come up with receipts.
|
Quote:
Originally Posted by ap_az
Keep in mind that while you have to pay tax on 1099 income you get to deduct cost of good sold (and cost of sale) prior to calculating your adjusted gross income.
In other words, if you paid $2000 for an item and sell it for $1000 then you aren't going to owe any taxes on the transaction. I plan to hand my accountant the 1099 along with a roll-up amount for the cost of goods and sale. I'll be able to back this up with documentation if needed, but the documentation isn't required to be submitted with the return.
This law isn't about going after people cleaning out their garage via online sales as the IRS knows that those people aren't actually _making_ money doing that. This is all about catching service providers who use these apps to provide a convenient payment mechanism, but have historically under-reported income.
|